Edward Gilmore hoped to be living in his new home in Adelaide’s south by the time his first-born child was ready to take his first steps.
Almost four years have passed since he signed his contract to build, and with an extra child now in tow, his family are finally moving into their O’Halloran Hill property.
Mr Gilmore was one of about 20 home buyers in the development left with unfinished properties after the builder, Felmeri Homes, entered liquidation in July last year.
The South Australian government stepped in to complete critical infrastructure at the site at a final cost of over $4 million, allowing new builders to access the homes.
Mr Gilmore said navigating the uncertainty caused by Felmeri’s collapse had been a “stressful” time for his family and others left scrambling to finish their properties.
“It has been relatively traumatic, especially for those who have been financially impacted pretty heavily, have moved back in with family and watched interest rates go up and up during the construction loan, unable to lock it down,” he said.
“The sheen coming off a lot of people owning their first home has well and truly tarnished.”
South Australian Infrastructure Minister Tom Koutsantonis said it was “gratifying to see some residents” moving into their homes.
“The level of service work required on this project was significantly higher than could have been expected, given the condition the project was left in, with some essential services poorly installed or not installed at all,” he said.
Tom Koutsantonis says the state government is working through its options to recoup the money. (ABC News: Lincoln Rothall)
State government actively trying to ‘recoup costs’
Mr Gilmore said he was “incredibly grateful” to the state government for stepping in.
“The government understood there was no way we could wait any longer – 20 families, the number of young children in this community is huge – it was a very vulnerable kind of community,” he said.
“We simply wouldn’t have been able to raise that money to go forward.”
Mr Gilmore said he does not expect to recover any costs from Felmeri as he regarded himself as a “small fish” among the company’s creditors.
Felmeri Homes were building a housing estate at O’Halloran Hill before it went into liquidation. (ABC News: Che Chorley)
But he said he hoped no other home buyers would be put in a similar situation in the future.
The situation at O’Halloran Hill sparked planning reforms that now require councils to be “satisfied construction of common roads” has occurred before developments can proceed.
At the time, Planning Minister Nick Champion said the changes would prevent a repeat of the “gut-wrenching experience families went through when Felmeri collapsed”.
An investigation into Felmeri by Consumer and Business Services, which began in early 2023, remains ongoing.
Mr Koutsantonis said the state government also continues to “actively work through options to recoup all taxpayer money spent” to fund the incomplete infrastructure.
The state government stepped in to fund this road so new builders could access incomplete properties. (ABC News: Will Hunter)
“It was Marion council that allowed this building work proceeding before appropriate infrastructure was put in place – and Marion council should be held accountable for the costs incurred as a result, not South Australian taxpayers,” he said.
“The council … still refuses to contribute to the costs, or even offer rates relief to impacted residents.
“This is quite frankly disgraceful.”
City of Marion chief executive officer Tony Harrison said council was happy to see residents “who were let down by a private developer” move into their homes.
“Council always endeavoured to make decisions in the best interest of the home owners,” Mr Harrison said.
“We have remained honest throughout the entire process and are committed to helping residents through our hardship policy.
“Council has no liability for the costs incurred and its ratepayers and auditors would not approve of spending money to improve private property.”
Seaside resort project restarts
At the same time, the fallout from the collapse of Felmeri Homes – and its commercial arm, Felmbuilt – was also being felt in the small seaside town of Wallaroo, on South Australia’s Yorke Peninsula.
A $42 million resort under construction along the town’s foreshore came to a sudden standstill, leaving unfinished townhouses exposed to the elements and a cloud over the project’s future.
More than 12 months on, and with a new Adelaide-based builder secured by the developer, there is a renewed sense of hope among the community that the resort may finally reach completion.
The Wallaroo Shores resort project currently under construction on South Australia’s Yorke Peninsula. (ABC News: Will Hunter)
President of Wallaroo’s community-led development association, Andy West, said it had been encouraging to see recent activity at the site.
“It looked doubtful with the way the conditions were with the building industry, and I think it is understandable that it’s hard to get tradespeople and materials sometimes, so it might not happen quickly, but it is at least happening,” Mr West said.
“I think people are starting to understand that it was a lot to do with COVID-19 – and other circumstances – which caused it to stop as it did.
“As things have started to settle down and you can see people there working, there’s certainly a little bit more optimism around the place.”
Andy West says the local community is optimistic about the future of the Wallaroo Shores resort. (ABC News: Will Hunter)
Copper Coast Council chief executive officer Dylan Strong said the council was pleased developer Monopoly Property Group (MPG) “continues to work with the project’s key stakeholders and developers”.
He said despite “major unforeseen” setbacks, the developer had managed to secure a new builder “capable of delivering this important project” to South Australia.
MPG founder Ben Howard said the builder’s current schedule puts the Wallaroo Shores resort “on track for completion in September 2025”.