The credit crunch seems to be spreading further afield, with news that a luxury real estate development in Auckland, New Zealand, has just collapsed financially, leaving many angry buyers and creditors.

Whisper Cove

The “Whisper Cove,” development was to be a  16 hectare, 160-luxury-residence, waterfront development at Snells Beach, but has been abandoned  after money issues, leaving a string of subcontractors, builders and others owed more than $2 million; $36 million to Westpac and $17 million to other financiers.

This is the second big housing development in Auckland to go under recently and follows the collapse of Kensington Park, a $450 million, 750-home development. Plans for more than 600 houses at both Orewa and Snells Beach are now being dropped as receivers attempt to complete dozens of part built homes and apartments. Bank of New Zealand loaned $41 million for Kensington Park and Westpac has a first mortgage over Whisper Cove.

Australian investor Babcock & Brown helped Westpac fund Whisper Cove along with Dominion Finance. Whisper Cove’s first phase of homes were marketed from $850,000 to $2.6 million. Grant Graham of KordaMentha, the receivers, says the company is getting good advice about options available for the development and a decision is likely in about a month. Unsecured creditors are owed over $2 million, but Brendon Gibson, joint receiver, said it was “unlikely they would get a cent.”

The Kensington Park and Whisper Cove collapses will almost certainly have a strong impact on the construction industry and drag down many smaller businesses along with them - the owners of Kensigton Park have already been forced to stop work on another huge development on Lake Taupo. Full story on possible impact at the New Zealand Herald.

World Island Resort

Limitless, the Dubai-government-owned developer, is to create, own and operate a US$350 million, 10.5 hectare ultra luxury resort on a man made island 14km from the Dubai coastline, the company announced today.

World Island Resort - on the north-east perimeter of The World development - is the tenth project for Limitless and the latest addition to its growing global portfolio, currently worth more than US$100 billion. It will be showcased at Cityscape Dubai next month.

World Island Resort will comprise 53 villas and water homes. Among them, 23 privately-owned villas, ranging from 650 to 820 square meters, offered for sale by invitation. Each will have a beachfront location or sea frontage with a private jetty, summerhouse and mooring facilities, and will come with its own spa treatment room, swimming pool, rooftop garden with outdoor kitchen, landscaped ground level garden overlooking the sea and internal elevator. The villas will be serviced by the hotel and can be leased back to the hotel when they are not being used by their owners.

The hotel - the first of several luxury hotels planned by Limitless - will focus on health, wellness, relaxation, world-class cuisine and the arts. It will feature a 2,000 square meter spa; an amenity building including specialty restaurants, art galleries, auction rooms, conference facilities and libraries; and luxurious accommodation in 30 villas or “water homes.” At its center of the island will be a lagoon with water features and a social clubhouse. There will also be a reception suite on the Dubai mainland - residents will reach the island by a private boat.

According to the Limitless press release, the World Island Resort “will be constructed in line with international sustainability and environmental standards.” Although, once again, I have yet to ascertain the meaning of the word “sustainable,” and there are no details available regarding the environmental standards, or how this can be applied to an artificial island built by shock dredging with no regard to the environment, where every single visitor is ferried by private motor yacht to the island.

Saeed Ahmed Saeed, CEO of Limitless, said: “In delivering World Island Resort we will draw on our expertise in waterfront development and the creation of distinctive projects that enhance and enrich people’s lives.

“World Island Resort will set a new global benchmark in the design and operation of luxury resorts. It is the flagship for Limitless’ waterfront hospitality developments and the launch pad for a range of high-end hotels we are planning in other waterfront and city locations.”

Any one looking through the recent announcements of world-wide luxury property investment developments could be forgiven for thinking that Dubai is the only country in the World still building new projects, and it is fair to say that Dubai appears to have plenty of room left for more. This is some of the most recent announcements.

Nakheel’s Waterfront development

is attracting a huge amount of interest, both from developers and investors, with many announcements selling out within a short space of time. Most recent, is

Cirrus’ mixed use project, Aquarius Gate

. The commercial tower at Aquarius Gate will be twenty-nine stories high, and offer panoramic views of the Arabian Gulf and the Palm Jebel Ali from its. Six glass elevators will provide uninterrupted views of the sea. (until the next water based development.) And the luxurious residential tower will offer views across the Canal, the Marina and the Palm Jebel Ali.

Burj Park Dubai

was announced last week, another luxurious waterfront development and within walking distance of the Buj Dubai and the Dubai Mall. What with the current state of traffic in Dubai, it’s fair to say walking is a sensible option.

The Burj Al Alam

, a luxury retail mall, is also planned and expected to be completed around mid-2011.

Raffles Dubai

recently joined the Al Basel consultancy network to promote their hotel in the hospitality sector.

Construction continues apace on the

Burj Dubai,

which is currently the world’s tallest building, despite the fact that it is still unfinished.

The World Islands development

recently completed the breakwater and one of the first announcements was the

luxury boutique hotel on “Greece,

” by European arcistocrat, Baron Jean Van Gysel de Meise.

Despite some suggestions that Dubai’s luxury real estate sector is headed for a crash, there seems to be no end in sight at the moment and more developments are being announced, almost on a daily basis.