Another major builder in trouble - Metricon

Just saw this:

Building giant Metricon is in urgent crisis talks with clients after falling into financial strife.

Sales staff within the company were being instructed to increase cash flow by securing more deposits, the Herald Sun reported on Wednesday.

Metricon bosses are expected to meet with major clients including the Victorian Government on Thursday.

https://www.news.com.au/finance/bus...e/news-story/4a819c88bd378ec0cc286074303cb503

I thought they were too big to fail. I have friends and family building with them. Concerning development.

 

OMG

 

Wonder what the impact on the property market will be. I'd imagine quite a few people would be looking to pull put of their house and land packages now?

If thats the case will we see a whole bunch of land being released back into the market at low prices?

 

Yeah not looking good.

Beyond those the stress of a half built house, what happens to building insurance or consumer laws regarding to build quality for years after the build?

So many will be impacted if they fail.

 

Wiith govt as a key client will they be too big to fail and get bail outs?

 

And what about those speculative buyers of house and land that were staring down being underwater at completion due to property downturn.

They’ll be happy to walk away from their half built houses putting more pressure on the cashflow.

 

Further constraint on supply of available property, I don't think it'll put downward pressure on prices. Build costs continue to increase due to availability of materials and labour.

Lots of people are hedging on construction costs dropping down in future when things "normalise". I would suggest that prices will not go backwards and this will be the new benchmark.

 

Metricon founder, CEO Mario Biasin dead at 71

 

There’s speculation he had mental health problems and committed suicide. I wonder if it’s related to the company’s financial crisis.

 

Going to be an interesting few years.

 

https://www.news.com.au/finance/bus...e/news-story/4a819c88bd378ec0cc286074303cb503

Probuild, Devcon, now Metricon?

Seems like the impact of rising materials and labour costs are really starting to bite.

What are the ramifications of this? Existing house prices might be buoyed perhaps by the lack of new supply in the short term... but what about the impacts on the broader economy?

 

I believe this is one of the biggest in Australia is it not?

This would be huge.. although they are saying "all is ok".. heard that plenty of times just before companies go bust

No wonder they are meeting with the Victorian Government

 

I bought a few parcels of land in the last 18months hoping do some duplexes. I sold a couple at amazing prices once the land registered (profits were more than what I was hoping to get once built). The last one I have hasn’t dropped it’s value, but certainly buyers are more conscious now. For me, I will now just hold it and will reassess plans later.

 

Metricon build HEAPS of residential as well. This is just going to add to the supply shortages for houses and will make prices rise more and more.

 

An early Xmas present!

 

These collapses should be good for prices of quality homes. And maybe so for units/apartments given the building v land ratio likely to rise. People only have so much money, so if build prices skyrocket does land drop?

 

I have seen 40% increase in build costs in last 12 months since I started my deve

Also supply issues and problems sourcing trades is causing massive delays and cash flow issues for builders

 

Owner has passed away. Monday. Mental health issues?

 

Metricon has come out today to deny reports of their financial problems and them in discussion with the Victorian government. This is going to be huge not just for buyers but trades and workers. Flow on effect will be widespread.

 

The rumour have been flying around for since the Christmas party about Metricon.