Scores of would-be owners have been left in the lurch after learning the properties they have been waiting five years for will never be built.
Property developer Wel.Co has pulled the plug on two key phases of a major housing development in Gawler East, north of Adelaide.
The decision comes with the firm locked in a bitter row with local authorities over changes to works on a road neighbouring the Springwood estate project.
But it has left 101 potential buyers in limbo after the firm tore their sale contracts up and scrapped two phases of the scene.
In a statement, Wel.Co said “revised planning and infrastructure requirements” had meant the project masterplan would require “significant redesign”.
The collapse is reportedly linked to changes to plans for works on nearby Cheek Ave.
“Wel.co is currently communicating with a number of purchasers at Springwood following revised planning and infrastructure requirements associated with the Concordia growth area,” a spokesman said.
“These updated requirements have materially affected portions of the project masterplan and require significant redesign and infrastructure co-ordination.
“While this is not the outcome Wel.Co anticipated, Wel.Co acknowledges this news will be disappointing for affected purchasers and is communicating directly with those impacted regarding next steps.
“Springwood remains an important long-term community projects and other stages continue to progress as planned.”
The firm confirmed 101 sales contracts had been terminated, although only 50 allotments had been directly impacted by the road. Of these, 75 were retail lots and 26 were reserved for builders.
Among those to lose out on their promised property was Tamika Townsend and her partner Daniel, who told 7News her “dreams have been taken away”.
“We’ve lost hope of being homeowners,” she said.
“We are devastated to know that, in the future, Well.Co might have the option of selling the block for double the price.”
The matter has sparked a bitter dispute between the developer and local authorities, with both the South Australian government and Gawler Council saying the company never indicated changes to Cheek Ave would impact the estate.
South Australian Housing Minister Nick Champion urged people affected by the decision to seek legal advice.
“The state government will not allow a developer’s commercial decision to be recast as a failure of government process,” he said.
“People bought homes. Those are not abstract planning outcomes, they are people’s lives.
“Wel.co has a direct responsibility to the purchasers whose contracts it has cancelled and to give them a truthful account of why.”
In a statement published to its website, Gawler Council said the decision had left potential buyers “angry and upset”.
“The news will be deeply disappointing for many individuals and families who believed they were taking the next steps towards building their future in Gawler,” Mayor Nathan Shanks said.
“While council acknowledges that development projects can face challenges and changing infrastructure requirements, we are extremely concerned by the outcome for affected purchasers.
“These are people who entered into contracts in good faith and will now see uncertainty as a result of this decision.”
The Springwood development, Wel.Co’s first South Australian site, was originally announced in 2021 and promised to deliver 2000 new homes to the growing town, which is about 55km north of Adelaide.
In a further statement, the firm said: “Wel.Co is continuing discussions with the Town of Gawler regarding planning matters associated with stages 8 and 9 of Springwood.
“As those discussions remain ongoing, it would not be appropriate to comment further at this time.”