Wollongong Buyers Left Reeling After Bathla Development Collapse

Wollongong residents are reeling after a major development collapse left dozens of buyers out of pocket and without a home. The 108-apartment complex, The Sanctuary, was one of 45 active projects left unfinished when Sydney developer Bathla went into administration in August with debts totalling about $3.4 billion.

Emotional and Financial Toll

For 72-year-old Sue Mancuso, the situation has been particularly dire. She put down a deposit for an apartment at The Sanctuary development in 2025, expecting to move in before Christmas. Instead, she is living with her daughter, Marie Sinclair, 12 months after the Kembla Grange units were slated for completion.

"Luckily my daughter has helped us, otherwise we would have been homeless," Ms Mancuso said.

Ms Sinclair said the situation had taken a major emotional and financial toll on her mother, who sold her family home and has had her furniture in storage for more than a year.

"It turns people's lives upside down and leaves them nowhere to go, really," Ms Sinclair said.

"If they haven't got support of friends or family, where does it leave them?"

Development Woes

The development's lender, Balmain, said it was "98 per cent complete", but in a fresh blow this month, the Building Commissioner slapped the project with a prohibition order for serious defects.

Janice Cahill has been renting and paying storage fees since 2024, waiting for her apartment in the complex to be finished. She had hoped the move would be a fresh start for her after losing her husband and father in the space of a year, and provide an accessible space to recover from the double knee surgery she had this month.

"Living in one room, not being able to go outside, it's depressing," Ms Cahill said.

"It's affecting my mental health."

Defect-Riddled Builds

Meanwhile, Murray Twist and his partner put their life savings into one of 92 new townhouses at a Bathla development in Avondale. It was their first home.

He moved into the Avoca Park estate in July, months later than expected, and found a building riddled with defects.

"There were a lot of sleepless nights, and a lot of hope lost," Mr Twist said.

A building report listed around 100 defects, including a missing smoke detector, cracks in pavement, and missing grout in the shower.

"[The report] found poor quality of work and unsuitable for completion — there were pages and pages of defects," Mr Twist said.

Relief for Buyers

For buyers in the Kembla Grange project, this month has delivered some renewed hope. Balmain CEO Andrew Griffin confirmed it had appointed receivers and would complete the project with contingency funds.

"We are absolutely completing the project," Mr Griffin said.

"We're very hopeful we'll get it done very early in the new year, if not very late this year."

Marie Sinclair said that news came as an immense relief for her mother.

"There's hope and light at the end of the tunnel for my parents," she said.