More than 100 buyers have been told their contracts to purchase at Springwood estate, north of Adelaide, have been “rescinded’’. Picture: Supplied.
More than 100 buyers who have waited up to five years to build their dream home have been left shattered after a national property developer reneged on their sales contracts.
Wel.Co, a development firm founded by ex-AFL footballer Andrew Welsh, has informed the buyers their contracts to purchase at Springwood estate, north of Adelaide, have been “rescinded’’, blaming changes to a proposed new road project.
In a statement, Wel.Co said that since the contracts were signed, plans for Cheek Avenue, on the northwest boundary of the Gawler East development, had changed and “what was originally expected to operate as a local road is now planned to become a major distributor road carrying substantially more traffic’’.
“That fundamentally changes the living environment for the adjoining roads,’’ said Wel.Co, who added it had “proactively worked with the relevant authorities’’ to minimise impact to future Springwood residents.
Changes to a proposed new road project have been blamed. Picture: Getty.
“(But) unfortunately, the affected stages could no longer be delivered as purchasers had originally contracted.’’
Wel.Co confirmed that while 110 sales contracts were being terminated, only 50 allotments were directly impacted by the road.
It did not respond to questions about whether buyers would be compensated for their losses.
Tamika Townsend, who is among those with contracts that have been ripped up, said she had initially expected to move into her new home at Springwood two years ago but now her “dreams have been taken away’’.
“We’ve lost hope of being homeowners,’’ Ms Townsend, who purchased the land with her partner Daniel, told Seven News.
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“We are devastated to know that, in the future, (Wel.Co) might have the option of selling the block (to a new owner) for double the price.’’
The South Australian Government and Gawler Council said during year-long discussions with Wel.Co, the developer had never indicated that plans to change the design of Cheek Avenue would affect Springwood estate.
“The state government will not allow a developer’s commercial decision to be recast as a failure of government process,’’ said SA Housing and Urban Development Minister Nick Champion, who urged affected buyers to seek legal advice.
“People bought homes. Those are not abstract planning outcomes, they are people’s lives.
“Wel.Co has a direct responsibility to the purchasers who contracts it has cancelled and to give them a truthful account of why.’’
Gawler Council said it was misleading to attribute the termination of the sales contracts due to delays associated with redesigning the road infrastructure and urged Wel.Co to “reconsider its position on the matter’’.
Gawler mayor Nathan Shanks said affected buyers had secured options on the lots up to five years ago and “will now face significant uncertainty as a result of this decision’’.
First announced in 2021, Springwood, a 220ha, 2000-lot residential development, was Wel.Co’s first foray into the SA market.
Several vacant land and land and home packages at the estate, as well as at Wel.Co’s Gracewood development at Mallala, currently remain listed for sale on realestate.com.au. Interstate, Wel.Co’s projects include Yallara and Harlowe, in Victoria, and there are also three masterplanned communities earmarked for Queensland.
– Lauren Ahwan
English (US) · 