Australia’s richest man has shrugged off fears of a property market slowdown and announced Meriton’s plans to release three new projects worth $1 billion before Christmas.
The projects are in the Sydney suburbs of Dee Why, Rosebery and Mascot and come after Meriton boss Harry Triguboff earlier this year launched the biggest development in his career — more than 3,000 apartments at Pagewood in the Eastern Suburbs.
The 83-year-old developer yesterday said that strong sales at his Pagewood Green community showed that buyers still had plenty of ‘oxygen’.
“Yes, we had what you might call a blip two or three months ago when the market was adjusting to tighter lending rules for offshore buyers,” Mr Triguboff said.
“That blip’s history, the market’s re-adjusted, and as far as Meriton is concerned, things are back to normal,” he said.
“We’ve got buyers, we’ve got sites, and we’ve got some great projects under way.
“Rents are strong, investors are happy, and the horizon looks to be clear of any interest-rate shocks.
“I’ve got my finger on the go button and we expect to have some vigorous sales activity in the run-up to Christmas.”
Mr Triguboff’s bullish stance comes as fears mount over a potential oversupply of apartments in core real estate markets in Brisbane, Melbourne and Sydney.
The RBA’s latest Financial Stability Review warned that a large number of new apartments has started to come on line, and as more completions are expected in the coming two years, this could see increased risks in several major Australian cities.
The report reveals that risks “appear greatest” in Brisbane and Melbourne’s inner-city suburbs, where the pipeline of construction is large relative to the existing dwelling stock, and where conditions are fairly subdued, especially in Brisbane where rents are now falling.
Last month APRA warned that risks within the housing and residential development market remain elevated.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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