Triguboff – rate cut should be first of many

Multi-billionaire Meriton boss, Harry Triguboff expects the cut in interest rates today to be the first of many.

“Interest rates had to come down, whether it was today or at the next meeting in April,” the founder and managing director of the biggest property development company in Australia, says.

“They should never have risen this high in the first place.

“There is more to the decision than a correction in the inflation rates. Nobody could really be sure which way the Reserve Bank was going to jump today but one thing is for sure, interest rates were not going up.

“All signs pointed to a rate cut but you always need to take into consideration the people behind those decisions. Very conservative, very stubborn,” he says.

Contrary to expectations, the property market has still had its foot on the accelerator, and buyers have not been waiting for the call from the Reserve Bank today.

“The market is already rebounding from the short-term downturn we saw at the end of last year,” Mr Triguboff said.

“We haven’t seen such strong buyer activity this early in the year before.

“We have had buyers sitting on the fence waiting for news from the Reserve Bank about a cut in interest rates but they have been in the minority. The majority have been pushing ahead and buying regardless. They were getting in before interest rates go down, and prices go up,” he says.

It also helps that the Government now has incentives in place across the board to help people secure a home.

“It’s very good to see that the Government is now trying to help buyers with finance, especially the young ones who have education debts,” Mr Triguboff says.

“By reducing those debts and enabling them to put more money into buying a property, it opens a whole new market.

But there still needs to be property for them to buy.

“The government is also now helping builders get off the ground with their construction,” Mr Triguboff says.

“With all the crazy rules we have had, there is very little being built and that is the last thing you want in a housing crisis.

“It has been a long time coming but we seem to be on a more positive trajectory

“I have never had so many apartments under construction but we still need a lot more,” he said.

And it is not only Meriton that has had a good start to the year. Last week the auction clearance rate was 76.8% and the week before the clearance rate was 72.6%, compared to the first two weeks in December, 2024, where the clearance rates were 55% and 53% respectively.

“It’s a huge turnaround in activity and momentum,” Mr Triguboff said.

“Many of the early buyers this year are downsizers and families. They are coming from houses into the apartment market.

“Investors are also starting to be very active, with online enquiry increasing 15% compared to late last year. Strong rents, record low vacancy and huge depreciation benefits on brand new units are pulling them in,” he said.

While sales are consistent for one plus study and two-bedroom apartments, the demands for the larger three and four-bedroom apartments and townhouses are growing every day.

“For years the apartment market would attract only one type of buyer,” Mr Triguboff said.

“Families couldn’t live in apartments and it wasn’t by choice, it was by design. They just weren’t big enough.

“Families downsizing from a large home still wanted to enjoy a bigger space.

“Our larger units are more in demand than ever.

“Our communities are geared towards those of any age. Upsizers, downsizers, families and anything in between. When you live in a Meriton apartment, you can stay in your community for life.

“Three of the five dearest sales this week used Meriton finance, so we are gaining a lot of momentum there as well. We have a lot more flexibility than the banks so buyers tend to speak to us first because they can generally borrow more. Our interest rates are super low therefore their borrowing power increases.”

“No matter where you are in the life cycle, Meriton has you covered,” he says.

Recent Meriton sales include:

1. A four-bedroom townhouse at Rivera, Pagewood sold for $3.65 million. The family who bought it have purchased multiple Meriton apartments as investments. The middle-aged family intend to live in this purchase with their family.
2. A four-bedroom unit in Trilogy at Macquarie Park sold for $1.985 million. The buyers are downsizing from a house in St Ives and were attracted to all the conveniences of apartment living in a central location offering shopping centres, hospitals and metro train.
3. A four-bedroom apartment at Baia, Rhodes sold for $3.259 million. The young family, already living in Rhodes, wanted something new with unapparelled views.
4. A three-bedroom apartment at Cielo, Epping sold for $1.7 million. The young family of three is moving from Riverstone to Epping because they prefer the school catchment, access to the new Epping metro station and all the benefits luxury apartment living.
5. A three-bedroom plus study apartment sold at Castle Hill for $1.75 million. The family from the upper North Shore purchased the large apartment with large terrace for themselves and their young kids.