The fast pace of price drops in Sydney is slowing down, or perhaps has come to an end, said Harry Triguboff, one of Australia’s biggest apartment developers.
This claim comes at a time when the property market, especially Melbourne and Sydney, has been the subject of seemingly endless negative reports.
“[Prices] should rise – otherwise, no one will build. If prices fall, the economy suffers,” Triguboff said.
In his letter to local Sydney estate agents, Triguboff highlighted the essential role that banks have to play in the industry. “We are all talking about Reserve Bank lowering interest rates, but that is only a minor matter. Banks must lend, but they do not because they are afraid. Now that we have shown where they were wrong (at the royal commission), we must encourage them to lend, and use their discretion,” he said.
Construction could halt if lending conditions become worse, according to Triguboff.
Another issue raised by the developer was the Sydney home unit boom’s reliance on Chinese buyers. Triguboff said that Australia will have stability when it depends on itself.
“We depend too much on Chinese purchasers. Foreigners must only be an additional bonus. I don’t want us also to depend on high-priced foreign lenders to provide the finance instead of our banks. We must stand on our own two feet,” he said.
Recently, Triguboff also acknowledged the significant role of Chinese in the property boom. Despite the reduced turnover at present, this group accounted for the large chunk of buyers in the market across the nation.
Juwai.com also reported that Chinese buyers will likely continue to make up for the largest share of all foreign buyer purchases in Australia this year.
