Billionaire property developer Harry Triguboff has warned that Australia's housing crisis has reached its worst point ever and will worsen without urgent intervention. The Meriton founder launched a scathing attack on the federal government, the Reserve Bank of Australia (RBA), and the Big Four banks, accusing them of being out of touch.
Triguboff's Plea Ahead of Federal Budget
Mr Triguboff, Australia's second-richest person with a net worth of $34.1 billion, issued a desperate plea to the Albanese government ahead of the May 12 federal budget. He warned that construction will continue to stall unless the government works with the industry to address the housing crisis.
"The position with real estate in Australia has never been worse than it is right now and it's only getting worse," Mr Triguboff said. "The government must act at once. For buyers and builders to be able to function, the rules must be changed now - not in a few months, but now."
He added: "If people go broke and people don't buy, the government loses money, not makes money."
Soaring House Prices Across Capital Cities
The median house price now exceeds seven figures in six Australian capital cities. In Sydney, the median stands at $1,791,643, while Melbourne's is $1,082,728. Brisbane's median is $1,212,195, Adelaide's $1,099,293, Canberra's $1,083,769, and Perth's $1,178,522. Prices are lower in Hobart ($817,251) and Darwin ($734,710).
Mr Triguboff also criticised the Australian Prudential Regulation Authority (APRA) alongside the RBA and banks. "The RBA can't raise the interest rates, which makes everything worse, even though they think they are following the law," he said. "The banks must supply the economy with much more money. Buyers must be given enough money to buy."
He added: "APRA cannot play games. They understand that builders can't build and buyers can't buy."
Inflation and Interest Rate Concerns
Inflation has soared to its highest level in almost three years, reaching 4.6% in the latest quarter, up from 3.7% in February, driven by rising oil prices amid the Middle East crisis. The spike has sparked fears that the RBA will hike interest rates for a third consecutive time next Tuesday, bringing the cash rate to 4.35% and increasing financial strain on mortgage holders during the cost-of-living crisis.
Mr Triguboff urged RBA Governor Michele Bullock not to raise rates, warning that a third consecutive hike would worsen the situation.
Meriton's Efforts and Call for Collaboration
Mr Triguboff noted that Meriton was already doing its part to stimulate housing demand. "I have offered finance, accepted lower deposits and charge less interest, but I would like to see more buyers," he said. "More people per unit will result. We want to know when and what changes will be made. And we, the builders and owners, need to work with the government."
He also questioned Australia's official unemployment figures. "They talk about four to six per cent unemployment. That is the biggest joke I ever heard," Mr Triguboff said. "Actually, many people get a small fraction of wages and they are counted as employed."
Mr Triguboff advised the government to focus on fixing domestic issues rather than looking abroad. "Australia is the most desired country so let's start discussing how it can be done," he said. "If it's possible to make a profit, more will be built and the government will make more money. Surely, that's the preferred direction."
