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Construction chaos in Wiener Neustadt: City wants to redesign the Leiner area!
The failed mega-project “Maximilium am Stadtpark” in Wiener Neustadt after the SÜBA bankruptcy and construction freeze. New city plan required.
Construction chaos in Wiener Neustadt: City wants to redesign the Leiner area!
In Wiener Neustadt, the ambitious “Maximilium am Stadtpark” project failed. A total of 500 apartments were planned as well as an educational campus that would include an elementary music school, a middle school, a kindergarten and concert halls. The northern part of the area was also intended for children and young people, while the southern part was intended to offer modern living space. However, these plans came to a halt after SÜBA AG, the developer responsible, filed for bankruptcy, as oe24.at reports.
The local council has now imposed a two-year construction ban to prevent the area from being sold quickly. The former Leiner area still belongs to a subsidiary of SÜBA. Mayor Klaus Schneeberger (ÖVP) has already contacted the liquidator and the banks to plan the purchase of the property. "We don't want a copy of the old project, a single residential tower is not an option. Something completely new should be created," he emphasizes.
Financial situation and scope for action
The estimated property value is around 17 million euros. The city is financially well positioned and could be able to finance the purchase. “Time will tell what options we have,” says Mayor Schneeberger. According to him, preventing a quick sale of the site is crucial for the future development of the area.
In the larger context, the Wiener Neustadt case highlights the problems that currently exist in the construction industry. In Germany, more and more property developers, including in other regions, are insolvent, which leads to considerable financial difficulties for home buyers. According to a report by Tagesschau.de, buyers had often already paid considerable sums down without being adequately insured. In 2023 alone, 578 property developers filed for bankruptcy, a record.
The construction industry doesn't just have to contend with insolvency cases. Construction costs have also risen by around a third in the last two years, while interest rates have risen sharply. Buyers who want to buy apartments in Germany must pay 100 percent of the purchase price in advance, putting them in a precarious position if the property developers go bankrupt. In countries like Austria, however, there are legal regulations that better protect buyers in the event of bankruptcy, which may also be the reason for the approach in Wiener Neustadt.