what is the world saying about gaza, page-3

It certainly is off topic but the slowdown has been well reported!!

The Age
Construction freeze hits city

* Cameron Houston and Royce Millar
* November 1, 2008

DEVELOPMENT in Melbourne is expected to come to a virtual standstill over the next few years, with commercial building projects worth billions of dollars frozen by the financial meltdown.

Building industry figures say a lack of credit and shattered business confidence are bringing the city's longest building boom to an abrupt end.

Prominent builders, developers and architects have confirmed retrenchments, with industry giants Mirvac, Multiplex and Lend Lease laying off hundreds of staff this week.

"Anything that is not already coming out of the ground is extremely unlikely to happen at all," said Tony Crabb, investment director with property strategists Savill.

He said 2011 and 2012 "are looking like extremely lean years for the construction industry".

"They are laying off staff all over the place - it's been quite brutal."

An Age investigation has revealed that proposed developments worth almost $10billion have been delayed or are on the brink of collapse.

Listed developer Mirvac has been crippled by the crisis in international debt markets and is unlikely to proceed with the $1billion Wholesale Fruit and Vegetable Market in Epping, while a $400 million office building next to Southern Cross Station is also under a cloud.

APN Property Group has also been battered, with a $400million office tower planned at 567 Collins Street under threat without a tenant willing to commit to the project.

At least part of the $850 million Village Docklands office park is in doubt, with developers Walker Corporation and Kuok Group unable to secure a major tenant and unwilling to contribute more equity.

The future of the $400 million redevelopment of St Kilda's triangle site is now uncertain, with financier Babcock & Brown in dire straits as its share price has collapsed by 95% since May last year.

The crisis in international debt markets has also hit property sales.

A bid to sell and redevelop the Lonsdale Street power station site for $60 million stalled recently because a Sydney developer had relied on bankrupt US investment bank Lehman Brothers to finance the deal.

The only glimmer of hope for developers and builders appears to be the residential sector. Central business district and inner-city sites earmarked for office towers are increasingly being transformed into apartment blocks.

Last year, Melbourne builder Grocon took on one of the toughest development projects in town, the long-derelict CUB site in Carlton.

The company released images of five largely commercial buildings with designs by prominent architects, including Denton Corker Marshall. About 300 to 400 apartments were to be a small component of the project, but Grocon spokeswoman Jane Wilson, yesterday conceded that the financial crisis had forced the company back to the drawing board.

It would now consider replacing offices with apartments, possibly 1000.

The Government-initiated Docklands project has not escaped the global financial crash, with an industry source saying that any commercial development at the riverside precinct not already under way is in trouble."


Cheers stevo2