Integrity New Homes Adelaide South falls into liquidation

Another SA home builder has gone bust, bringing the tally of failures in the embattled local industry to one a month on average this year.

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Another South Australian home builder has gone bust, a day after it was revealed a well known local home improvements specialist had called in administrators.

Liquidators have been appointed to Integrity New Homes Adelaide South, a franchisee that’s operated from Glenelg for close to three years.

It brings the tally of South Australian home building failures to at least 11 this year, including the collapse of Coast to Coast Homes in May, D&C Homes in June and Emerald Custom Homes in July.

Clifton Hall’s Tim Clifton, who’s been appointed liquidator of Integrity New Homes Adelaide South, said the latest failure was a sign of ongoing challenges in the state’s home building sector.

“This is a very small matter, they’re only building two homes and essentially have one employee,” he said.

“There was no work in the pipeline – it’s tough out there, especially when you’re competing with all the volume builders out there.”

Mr Clifton said creditors were owed less than $100,000, while one project was left nearing completion and another halfway through construction.

Integrity New Homes operates more than 20 franchises across the country.

The collapse of the franchise’s Glenelg operation leaves Integrity New Homes Limestone Coast at Robe as the sole South Australian franchisee.

On Monday it was revealed the previous operator of SA Quality Home Improvements had been forced to call in administrators, six weeks after selling the business to another entity.

Creditors of that company have been left chasing more than $1 million in unpaid debts.

According to the latest Business SA/William Buck Survey of Business Expectations, released Monday, business confidence in South Australia hit a record low in the three months to the end of September.

Master Builders Association SA chief executive Ian Markos said even though Integrity New Homes Adelaide South was not a member of his organisation, the news was “concerning”.

“It’s possible some of our subcontractors are owed money and we are investigating that,” he said.

“It has been a fairly tough year for the housing industry and in recent months land tax has weighed on the minds of many potential buyers, making them reluctant to put pen to paper and sign a contract.

“However we are optimistic that if a positive resolution can be achieved, confidence will be restored and we can get the industry up and about again.”