Residents evacuated as cracking halts Sydney apartment development

Residents in Botany have been forced to evacuate their homes after excavation works at a neighbouring multimillion-dollar apartment site left their property structurally compromised, prompting NSW regulators to halt construction over safety fears.

NSW Building Commissioner James Sherrard issued a stop-work order last Thursday against developer Natoby Pty Ltd over its $10.7 million project at 1170-1176 Botany Road following inspections that concluded the works were likely to cause further property damage if allowed to continue.

The five-storey development, which includes 32 apartments and two underground levels of car parking, has been under construction following approval by Bayside Council in 2022.

However, concerns escalated after inspections by the Building Commission in January documented worsening cracking, subsidence and structural movement at the adjoining house, with potential impacts extending to other nearby homes, footpaths and the public roadway.

The site has also been inspected by the NSW State Emergency engineer, who found the affected house was built on a sandy foundation riddled with voids, leaving the structure “significantly compromised”.

The engineer warned continued ground settlement could lead to a “possible partial collapse of walls and the roof” and recommended occupants be evacuated immediately until the structure could be stabilised.

The residents have since left the property, which is now boarded up and fenced off. Building Commission NSW confirmed the occupants were being supported, along with their insurers, while the safety of the home was assessed.

Photographs and reports collected during inspections showed cracks spreading across internal and external walls of the affected home, while pavements along the site boundary were observed sinking towards steel sheet piles installed as part of the apartment excavation works.

Sherrard described the situation as “totally unacceptable”, saying the consequences of poorly managed excavation can extend far beyond the construction site.

“This has required the intervention of the Building Commission, Bayside Council, SafeWork NSW, the NSW State Emergency engineer, and insurers,” he said.

“Our stop-work order will remain in place until we are satisfied the site is safe.”

When the Herald visited the site this week, residents and business owners said the shutdown came as little surprise. One neighbour, who asked not to be named, claimed their house had “shaken” during excavation works and that residents had been worried for months about the impact of the project.

Planning records show the development was approved despite multiple public submissions opposing the project, several of which raised concerns about the proximity of deep excavation works to neighbouring properties.

In one redacted submission, a resident questioned the risks posed by excavation for the basement car park, asking: “What would happen if my house collapses as a result of the excavation or in the event of any damage to the structure?”

Under the stop-work order, all construction must cease except for works necessary to stabilise the excavation and prevent further damage. The developer has been directed to engage a professional engineer to inspect neighbouring properties and surrounding public infrastructure. A damage assessment report must be submitted by March 5, along with ongoing fortnightly monitoring.

Natoby Pty Ltd opposed the shutdown, submitting reports to the Building Commission citing interim remediation works as evidence the situation was under control.

However, Sherrard said there was no comprehensive structural or geotechnical engineering advice demonstrating the long-term stability of the neighbouring dwelling.

“I am satisfied that the work has and is being carried out in a manner that could result in significant harm or loss to the public or to occupiers of the building to which the work relates, and significant damage to property,” he said.

The case highlights increased regulatory scrutiny of residential apartment construction in NSW, particularly where excavation and ground works risk destabilising surrounding properties.

Since January, the building regulator has issued three other stop-work orders to separate development sites in Sydney, including in cases where construction projects were found to be vulnerable to structural failure.

Natoby Pty Ltd has 30 days to appeal the decision in the NSW Land and Environment Court, though any appeal would not automatically lift the halt on construction.

The Herald contacted Natoby Pty Ltd and the private certifier for the development, who declined to comment on the Building Commission’s order.

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