Harry Triguboff, Australia's richest man and the 93-year-old founder of Meriton Group, has unleashed a fiery tirade against the state of the property market, warning of a potential 'catastrophe' and calling for urgent policy interventions. In a wide-ranging note on the company's website, Triguboff paints a dire picture of a market in freefall, where restrictive bank lending is stifling demand and pushing buyers to the sidelines. He argues that the current situation is not sustainable and that urgent action is needed to support property demand, credit, and investment.
One of the key issues Triguboff highlights is the indecisiveness of potential buyers in the face of falling prices. Despite the lower prices, buyers are hesitant to enter the market due to tightened credit conditions. This indecisiveness, he suggests, is a natural response to the fear of missing out on further price drops. However, he warns that this mindset could lead to a vicious cycle where prices continue to fall, and buyers disappear, further exacerbating the market's struggles.
Triguboff also takes aim at the banking sector, accusing them of making it impossible for buyers to secure loans. He argues that the banks' reluctance to lend is putting both the banks and the buyers at risk. He emphasizes the importance of a balanced approach, where investors make a reasonable profit, and buyers can access the necessary financing to make purchases.
In addition to the property market, Triguboff weighs in on Australia's immigration debate, advocating for a more strategic approach to attracting migrants. He believes that the country needs more people to grow and develop, but the current system is flawed. He criticizes the 2-4% unemployment figures as inaccurate, suggesting that many people are struggling to find work. He calls for a more selective immigration policy, one that prioritizes the right people to ensure a harmonious and productive society.
The property market's decline is evident in the latest Cotality figures, which show national house prices down 0.7% from their all-time highs. Sydney and Melbourne have seen significant drops of 3.7% and 4%, respectively, while Brisbane, Adelaide, and Perth remain at record highs. The capital city auction clearance rate has slipped below 50%, and consumer sentiment is at an all-time low, further indicating the market's struggles.
Triguboff's commentary is a stark reminder of the challenges facing the Australian property market and the need for comprehensive solutions. His insights into the behavior of buyers and the role of banks provide a valuable perspective on the market's current state. As the market continues to navigate these turbulent times, Triguboff's warnings and calls for action serve as a wake-up call for policymakers and market participants alike.
