Harry Triguboff: Time for the investors to act

Investor activity in the property market could surge due to stronger rental returns, underpinned by the lack of supply and the widely expected interest rate cuts.

Investor confidence levels have been steadily improving as the rental growth across the Meriton portfolio reached 20% in just 12 months, with vacancy rates below 1%. Despite 5 hikes in 2023, interest rates have now stabilized, with most banks expecting to drop interest rates by the end of the year which would increase an investors net return significantly.

The market remains severely undersupplied. Approval numbers remain low. The number of apartments launched and commenced in 2023 both reached their lowest number over the past decade. The rising construction costs mean these apartments will be more difficult to build, which will further hinder the housing supply. Australia’s highest-ever January net intake of arrivals will put further pressure on the housing demand.

Meriton Founder and Managing Director Harry Triguboff says now is a great time for investors to take action and buy before prices rise, “Nothing is being built, and we have a lot of people who want to live in quality units.

Meriton has the broadest range of completed and ready-to-move-in apartments, with 6 fully completed apartment developments in our portfolio. Our units are always popular with investors and renters, because we have been developing and building for over 60 years. We have experienced building management teams who take great care in looking after our buildings and know the way people want to live, and we build exactly what they want. Our new developments offer abundant facilities, like retail precincts, childcare centres, playgrounds and more, and as a result achieve higher rents for investors compared to older units.”

Harry Triguboff says, “When the time comes, the interest rates will be dropped which is a stroke of the pen. However, it takes years to produce units. And our advantage is that we have plenty of completed units and many more under construction.

There are various elections coming up. The politicians will be frightened to go to elections with low housing supply and high-interest rates, so the situation should improve soon. Meriton makes big profits because we hold on to properties, so it makes sense for others to do the same. “