Six incomplete townhouses at a state government housing precinct in Hamilton Hill, Perth, have been torn down after sitting empty for more than a year — leaving taxpayers facing a total bill of around $5 million for a project that has delivered nothing but rubble.

The properties were part of Development WA's OneOneFive precinct and were being constructed by builder Inspired Homes for sale on the open market. When Inspired Homes entered voluntary administration in April 2025, work stopped and the townhouses were abandoned mid-build, becoming what one local resident described as "ghost houses."

A Costly Chain of Failures at the OneOneFive Precinct

More than $1 million had already been spent on the six townhouses before construction halted. A newly engaged builder assessed the structures and determined they could not be salvaged, triggering a demolition process that is costing an additional $150,000. Once the sites are cleared, rebuilding is expected to cost a further $4 million — bringing the total exposure to approximately $5 million of public money.

Making matters worse, none of the replacement homes are earmarked for social or affordable housing, despite the project unfolding against the backdrop of a deepening national housing crisis squeezing renters and buyers across the country.

For days, demolition crews have been clearing the sites, with debris from what should have been family homes being carted away to landfill.

'Ghost Houses' and a Community Left Frustrated

Local resident Jean McKay said watching the properties sit idle for so long had been distressing for the neighbourhood.

"It was sad. It was almost like having sort of ghost houses over the road," she said. "They've just been sitting there and so it's been quite distressing seeing the houses and no further work progressing on them."

The sentiment was echoed by WA Greens leader Brad Pettitt, who did not hold back in his assessment of the situation.

"It's wasteful, it's destructive and in the middle of a housing crisis, frankly, it's unacceptable," Pettitt said.

Government and Opposition Trade Blame

Housing Minister John Carey confirmed that Development WA is pursuing the original builder to recover costs, though the outcome of that process remains unclear.

Opposition housing spokesperson Sandra Brewer used the debacle to call on the government to reconsider its role in the housing market, arguing it needs to build greater capacity so that residential builders can meet demand for new homes.

The failure has drawn renewed scrutiny to how public agencies manage building contracts and what protections exist for taxpayers when private builders collapse — a question also being asked in other states grappling with difficult decisions around public housing demolition and renewal.

What Happens Next

A new builder has been engaged to complete the rebuilt townhouses, with work expected to be finished by late 2027. In the meantime, the cleared sites in Hamilton Hill stand as a stark reminder of what can go wrong when private construction firms fail mid-project — and who ultimately picks up the tab.