As Sydney’s housing crisis intensifies, this row of 18 terraces has sat empty for six years because the developer knowingly built on toxic land.
It’s a prized piece of real estate in the city fringe, but almost a decade after they were first approved, the Erskineville homes are vacant shells.
The land was formerly occupied until 1973 by the Metters factory — a manufacturing company and the source of the toxic heavy metals found below the surface.
The plan for this modern housing development, where the median house price is $1.95 million, was approved in 2015.
An artist’s impression of what the development was supposed to look like. (Supplied)
For the buyers who originally bought these terraces on Metters Street, no-one has walked into their brand-new homes and they are not likely to do so any time soon.
Most are believed to have extracted themselves from their contracts with developer Golden Rain Development Pty Ltd after it was discovered in 2019 that the plush properties had been built above contaminated soil.
Despite Sydney’s housing shortage, fences are still blocking entry into what was marketed as Honeycomb terraces, which get their name from their design.
One of the 18 houses that have sat unoccupied since 2019 in Erskineville. (ABC News: Marcus Stimson)
‘Must be a nightmare’
The City of Sydney has spent years going back and forth with the developer and disgruntled buyers to see whether the homes can reach a livable standard.
Looking at the situation in 2025, Deputy Mayor Zann Maxwell said it would have been a “nightmare” for owners caught up in the bungle.
“At a time when Sydney is in a deepening housing crisis, it’s deeply frustrating to see any home sitting empty for years on end,”
he said.
“Like it or not, private sector developers are going to be central to getting more homes built and we need to be confident they’ll do the right thing from start to finish. Trust and accountability are essential.
“It must be a nightmare for those involved; it’s so difficult to get a deposit together in the first place, and then you have your life savings tied up in this.”
Deputy Mayor Zann Maxwell, who lives in neighbouring Zetland, ran on platform spruiking more affordable housing in the city. (ABC News: Alexander Lewis)
The terraces were built as part of a larger residential precinct project that included the construction of 109 apartments, known as the Sugarcube apartments.
That residential block endured similar contamination problems but is now fully occupied.
According to council records, a string of remediation efforts have taken place over several years to bring the Sugarcube homes up to code.
The 109 high-end Sugarcube apartments at Erskineville are now fully occupied after the contamination was rectified there. (ABC News: Jason Om)
$23 million blame game
In a trove of documents relating to its development, Sugarcube owners complained the prolonged drama with the neighbouring Honeycomb terraces was impacting their property values.
Behind the scenes a $23 million courtroom battle was playing out.
Golden Rain had paid $46 million to build on the industrial land where the Metters factory once sat.
The developer spent two years in the Supreme Court fighting the builder it contracted to deliver the project.
Those who originally purchased the Honeycomb terraces have faced a stressful situation. (ABC News: Marcus Stimson)
A Supreme Court judgment in the case found both Golden Rain and the builder knew the land was contaminated “in the soil and groundwater”.
The end result saw Golden Rain awarded the $23 million in damages from the builder in August 2023.
Where to now?
Ever since the toxic land scandal first broke in 2019, Golden Rain’s physical presence has vanished.
Its website is defunct, no social media exists, and the only clue to a functioning company is a business filing listing its premises as an abandoned warehouse in Girraween.
The registered place of business of Golden Rain Development in Girraween, Western Sydney. (Supplied: Google)
At the time of spruiking the Honeycomb and Sugarcube project, Golden Rain claimed to be a successful developer, having completed dozens of projects in Asia.
Company records show Golden Rain’s major shareholder is a man living in Anhui, China.
Other shareholders are also Chinese residents, but three live in Pyrmont, Breakfast Point and Cabarita.
The Sugarcube and Honeycomb project was supposed to be an idyllic modern housing project. (ABC News: Marcus Stimson)
When the ABC contacted one of the directors, they declined to comment and blamed previous landowners for not addressing contamination on the site.
They said they planned to put the homes back on the market but were still waiting for an occupation certificate from the council.
‘Long-term consequences of the developer’s failures’
One side of Metters Street in Erskinville resembles a ghost town, closed due to contaminated soil and water. (ABC News: Marcus Stimson)
The City of Sydney said it had been waiting since March for information to satisfy it that the homes were now liveable.
In a statement, it said Golden Rain failed to meet a number of conditions before construction started.
“The developer began construction without meeting these conditions, after a private certifier issued the construction certificate to allow building to proceed,” the council said.
“The City of Sydney reported the certifier to NSW Fair Trading once it became apparent the certificate had been incorrectly issued.
“Until the developer provides us with the outstanding information, we cannot provide the necessary approvals.”
The spokesperson said the focus was ensuring the homes “are able to be safely occupied” in the future and that owners “are not burdened with the long-term consequences of the developer’s failures”.
