Bauchaos in Wiener Neustadt: City wants to redesign Leiner area!

Bauchaos in Wiener Neustadt: City wants to redesign Leiner area!

In Wiener Neustadt, the ambitious project "Maximilium am Stadtpark" failed. A total of 500 apartments and an educational campus were planned, which was to include a music folk school, a middle school, a kindergarten and concert halls. The northern part of the area was also intended for children and adolescents, while the southern part should offer modern living space. However, these plans have stalled after Süba AG, the responsible property developer, registered bankruptcy, such as oe24.at reports.

The local council has now imposed a two -year building block to prevent the area from being sold quickly. The former Leiner area belongs to a subsidiary of Süba. Mayor Klaus Schneeberger (ÖVP) has already contacted the mass administrator and the banks to plan the purchase of the property. "We do not want the old project to be licked, a single residential tower is not an option. Something completely new is to 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 manage the purchase. "Time will show what options we have," says Mayor Schneeberger. Preventing a quick sale of the area is crucial for the future development of the area.

In a larger context, the Wiener Neustadt case shows the problems that currently exist in the construction industry. In Germany, more and more developers, including in other regions, are insolvent, which leads to considerable financial difficulties for apartment buyers. According to a report by tagesschau.de, buyers had often already paid considerable sums without being adequately secured. In 2023 alone, 578 developers registered bankruptcy, a record.

The construction industry is not only struggling with bankruptcy cases. The construction costs have also increased by about a third in the past two years, while the interest rates have increased. Buyers who want to buy apartments in Germany have to pay 100 percent of the purchase price in advance, which puts them in a precarious location, the developers should become insolvent. In countries like Austria, on the other hand, there are legal regulations that buyers better protect in the event of bankruptcy, which may also be the reason for the procedure in Wiener Neustadt.