Talbot Le Page Homes is the latest WA builder to go bust, an Australian Securities and Investment Commission announcement has confirmed.
Turquoise Developments, trading as Talbot Le Page, specialised in high-end custom homes across Perth. The first meeting of creditors will be at FTI Consulting on June 7.
Building Commissioner Peter Gow on April 18 issued a public warning about the financial status of the Duncraig builder as it investigated concerns about the builder's conduct and ability to pay debts.
"People dealing with the company should be cautious and should only make payments or give credit when the company confirms its financial situation," Mr Gow warned at the time.
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"In the meantime, the Building Commission will continue its investigation and assess whether further action against the building contractor is warranted."
On April 26, the Building Services Board prohibited the company from entering new contracts, saying the company had not notified the Commission of its financial situation as it was obliged to do.
It said this prohibition would limit the risk to the public until the company's situation was clear and warned people with existing contracts to be cautious about making payments or giving credit.
Burswood-based Builton Group, trading as Platinum Homes and Aspireon Homes, was placed under administration in January after Collier Homes and high-end builder Quattro Homes both also went bust late in 2016.
Housing Industry Association executive director John Gelavis said insolvency happened across all industries and housing was one of WA's largest industries.
He said the state's compulsory home warranty insurance system protected consumers if builder collapsed.
But levels of collapses over the past three years, while they were perhaps attracting more public interest, had actually been fairly consistent.
"But a couple of things are playing out," he said.
"The market's come off a record high of 32,000 building 'starts' – when a dwelling or complex starts construction – that puts pressure on all builders and subcontractors across the industry.
"The long term 20-year average is about 20,000 starts. So we are back to that – a normalised market.
"The challenge for some companies was to transition from the record high on the back of strong overseas migration, back to more normal levels."
He said things were actually looking pretty good for people wanting to build in Perth.
"The time it takes to build a home has also decreased dramatically because of a significant increase in the availability of trades contractors ... who were previously flat out in the mining sector up north," he said.
"The cost of materials has also improved based on the drop off in demand."
He said good signs for housing included the $10,000 first homebuyers grant, stamp duty exemptions for land purchases up to $300,000 or up to $430,000 for a house and land package, changes to KeyStart criteria to allow more singles, couples and families access despite slightly higher income levels, and a low-deposit scheme hat dovetailed with the first homeowner grant.
"When you put it all together with the lowest interest rates in the history of Australia ... the conditions to buy and build a new home in WA are actually really favourable," he said.
"Another key benefit to build now is that it's a highly competitive market so there are good deals out there for consumers put forward by builders to secure business.
"But people must do their research and get a builder they are really comfortable with. Do their research. Check with the Commission to see if there have been any problems. Make sure their builder communicates openly and works with people closely."