Low interest rates fuel Meriton Apartments sales boom

Billionaire developer Harry Triguboff says after a slump in March, buyers are flocking back to snap up his apartments.

Meriton Apartments founder Harry Triguboff says first-home buyers are behind the recent sales surge of his Sydney units. Picture: James Horan

Billionaire developer Harry Triguboff admits the sale of his residential units hit a low point during the COVID-19 pandemic in mid-March, but in the past five weeks he has sold more than 200 Sydney apartments across his 13 developments at an average price of $950,000.

Mr Triguboff’s Meriton Apartments has sold out its Dahlia complex in the giant Pagewood Green development in Sydney’s Eastgardens, and in the past week has been on the verge of selling out of completed apartment projects in the Sydney suburbs of Dee Why on the northern beaches, Rhodes in the west, and Mascot in the inner south.

Meriton argues there’s been a rise in demand for completed apartments in Sydney and a 250 per cent jump in unit inspections since the start of April, with much of the demand stemming from first-home buyers who are finding it cheaper to purchase rather than rent.

Around a quarter of Meriton’s sales have been to overseas buyers, with the remainder of off-the-plan and completed apartments picked up by locals.

At its latest development, the 260-apartment Eminence in Sydney’s Green Square, Meriton sold 80 apartments at the project’s weekend launch, with prices starting at $775,000 for a one-bedder with no parking, rising to $1.6m for a three-bedroom unit.

“In an environment where most people have been working from home we have seen an increase in buyer activity for layouts that offer extra study/office space,” Meriton said. “One bedroom plus study apartments have been the most popular so far.’’

Mr Triguboff said there was pent-up demand after a quieter March, with buyers wanting to take advantage of prices that were low or had fallen.

“Buyers are also noticing the supply of new apartments ­shrinking at a rapid rate which will likely put pressure on pricing,” it said.

Many recent Meriton purchasers were first-home local buyers, Mr Triguboff said, adding: “What pleases me is that many Australians are buying, especially first-home buyers.

“April sales to first-home buyers were the highest they have been for six months.”

Mr Triguboff said the number of young families and young professional couples moving from renting to buying was increasing because it was cheaper to buy than rent in many developments due to the low interest rates.

“Our turnover is rising, which illustrates that more permanent and Australian residents are in the market, along with expats,” he said.

“Australia has handled the COVID-19 crisis really well, which will draw more migrants and students. “Things soon will be back to normal.”

Meriton director of sales James Sialepis said an advantage for Meriton had been that buyers could see construction had not only started but was well under way. “We are finding more buyers are chasing certainty and security, especially off-the-plan, and Meriton has a proven track record of delivering both,” he said.