Nostra Property Group Takes on Porter Davis: 375 Houses Saved

Builders failing to take out necessary insurance

Mon 17 Apr 23


Hundreds of unfinished home builds left in limbo by the collapse of Porter Davis will be completed following the sale of part of the business to Victorian construction firm Nostra Property Group.

The partial sale of the ‘off the plan townhouse business’ which includes 375 homes and townhouses, was reported by the ABC and follows news that Grant Thornton, the liquidator for Porter Davis, has developed 15 builders capable of taking over the Porter Davis portfolio.

According to an International Monetary Fund (IMF) report on earlier this month, the Australian Housing Market could risk ‘a wave of defaults.’ Footage courtesy of @abcnewsaustealia

The collapse of Porter Davis left about 1700 home building projects in limbo, with the majority of those in Victoria and about 200 in Queensland.

It follows reports that customers may not be covered by insurance because Porter Davis did not take out insurance for new builds until planning permits were obtained.

A report by The Age shows many builders are also failing to take out necessary insurance.

Protestors gathered in Melbourne over the weekend to call for the state government to pay back lost deposits.

Footage courtesy of @9NewsAus

The Sydney Morning Herald reports that a number of large developers including Stockland, Lendlease and Mirvac have been caught up in the collapse.

Last week Wood Central reported that ‘ground breaks’ are expected to fall as builders and home buyers are both impacted by the affordability crunch.  

Yesterday, Wood Central reported that more than 1300 construction companies have fallen into liquidation so far this year, the highest levels since 2019 and a 40% increase on last financial year.

Last week, Kersten Gentle the CEO of the Frame and Truss Manufacturing Association (FTMA) spoke to Jaqi Rennie, Managing Director of Austbrokers Trade Credit, and outlined ways that fabricators can reduce their exposure to builder default.

The FTMA has engaged Alares who provides FTMA members with monthly credit risk insights – including insolvencies, winding up actions and court recoveries.


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