Brisbane builder CMF Projects goes into administration
Brisbane apartment builder CMF Projects has called in administrators in what could be early signs of a cooling market
Seeming renforcing earlier warnings by the RBA about an oversupply of apartments, CMF is the biggest collapse after the recent building spree.
According to the builder's website, it has constructed major projects for residential developers, commercial and retail developers as well as a number of government contracts, the Australian Financial Review reported.
Its residential book shows it has completed medium rise apartment projects including the Mowbray Apartments, ARIA group's AUSTIN Apartments, Kyabra Street Newstead, Artisan South Brisbane and Vine South Brisbane.
The company and its directors Greg Campbell and Cameron Fidler could not be reached when contacted, the AFR reported.
According to ASIC filings, David Clout and Patricia Talty from David Clout and Associates were appointed as administrators on Wednesday.
It is not known why the builder has had administrators appointed, however some builders have been under pressure with high construction costs and a sudden pull back in new apartment project plans.
Apartment approvals slipped to 110,401 for the 12 months to March this year - the lowest since May 2015, when they stood at 109,141 according to the ABS.
In Queensland, apartment approvals fell 29 per cent in the month of March.
The Reserve Bank of Australia had noted of concerns on the apartment market, warning a flood of new apartments could come onto the market in certain areas, pushing down prices and causing heavy losses for developers.
The decline has been driven by tighter financing from banks, stricter rules on both foreign and domestic investors, and rising costs.
Changing fundamentals in the Brisbane market have also seen the city's inner-ring vacancy rate rise to a new high of 4.4 per cent, following a year in which the city saw a record number of new apartments settled.
Growth in vacancy in the March quarter, from 3.6 per cent in the three months to December, reflected supply outstripping demand according to Real Estate Institute of Queensland chief executive Antonia Mercorella.
