SA government to explore legal options against developer

South Australia's government is preparing to take legal action against national developer Wel.Co after the company abruptly cancelled 75 contracts with homebuyers. The cancellations affected stages eight and nine of the Springwood Estate at Gawler East.

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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 homes [in the development].

Wel.Co attributed the cancellations to changes in the broader area's planning, including roads and infrastructure, which they claim altered the original contract conditions. The developer stated that a planned major distributor road would significantly increase traffic, fundamentally changing the living environment for affected homes. They emphasized that this issue is isolated to these specific stages and does not impact their wider project portfolio.

However, South Australia's Planning Minister Nick Champion rejected this explanation, telling ABC Adelaide that the contracts were cancelled without "real justification." He asserted that no state government actions regarding infrastructure provision would warrant such a decision by the company. Premier Peter Malinauskas echoed this sentiment, stating that developers who tear up contracts for reasons inconsistent with their claims "deserve to be held to account."

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Nothing the state government's done in the provision of infrastructure in any way would lead to this decision by this company.

The premier announced that the government would assess its legislative options to "regulate this type of practice" and explore all available legal avenues. "Unless the contracts are reinstated... I've made it crystal clear that I expect the commissioner to examine all our options here," Malinauskas said. He added that the government "won't abide by people participating in this particular industry and doing over hardworking mums and dads in the process," calling the situation "basic decency."

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Where actors seek to tear up contracts for purposes that aren't consistent with what they say, then they deserve to be held to account.

Wel.Co has stated it is continuing discussions with the Town of Gawler Council regarding planning matters for the affected stages but declined further comment. Concerns have also arisen in Renmark, where Wel.Co has a contract for a large housing development, with some locals worried about its stability following the Springwood issues.

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Unless the contracts are reinstated … I've made it crystal clear that I expect the commissioner … to examine all our options here.