Harry Triguboff happy with signs of recovery in the property market
Meriton founder and managing director Harry Triguboff believes Australia’s real estate market will start to recover from the impact of COVID-19 soon, with signs of improvements already showing. With the help of government assistance and record low interest rates, new home loans in August recorded their largest monthly increase since records began in 2002. And in October, Sydney property prices returned to growth for the first time since this April.
“There is very little supply, and the rigorous approval process from the councils and banks certainly isn’t helping.” Says Mr. Triguboff. According to the Greater Sydney Commission, 725,000 new homes will be needed by 2036 to meet demand. But the current supply level is not only failing to catch up, it is expected to plunge by 81% due to project delays and cancellations. The UDIA also predicts NSW housing supply is heading for the lowest level in over 70 years.
Another reason for Mr.Triguboff’s confidence is Australia’s relative success against COVID-19, “Australia is in a good position because we have not been impacted by COVID-19 compared to many other countries, and we are now opening up borders within states which is fantastic news. Our office workers are also returning to offices because working from home is not for everybody.”
“Our government was very helpful with the companies who suffered and was very helpful to workers who lost their jobs. Many governments around the world could not do it even if they wanted because other governments were financially weak.”
Mr.Triguboff is also pleased that the residential market is showing signs of improvement, considering there is a freeze on overseas immigration, but believes that this could be short-lived if we don’t take action on immigration soon . “We are starting to recover despite having no migration, overseas workers and students, imagine what will happen when this changes. We used to welcome 150,000 immigrants annually who are the best there is. In the current economic climate, we can’t just rely on 150,000-local newborns, who won’t have an actual impact on the economy for at least 20 years, the immigrants immediately seek accommodation and they boost our economy.”
“We have handled the COVID-19 situation better than many other countries, and as a result the desire of immigrants and students to come back has been stronger than ever, so we must be clever and not waste time in bringing them back. Instead of doing nothing, we must seize the opportunity and act at once.” Says Mr. Triguboff.