Harry Triguboff calls for incentives for apartment developers and buyers

Harry Triguboff has called on state and federal governments to offer more incentives to apartment developers and purchasers.

Harry Triguboff said apartment rents were not rising because people preferred to invest in houses, which were enjoying solid rent rises.

Multi-billionaire property developer Harry Triguboff has called on state and federal governments to offer more incentives to apartment developers and purchasers — given his source market of immigrant and student purchasers has all but dried up.

“We are suffering because the migrants are not coming and the students have left,’’ said Mr Triguboff, founder of Meriton Apartments, which is building around 3000 units in Sydney and the Gold Coast, including the 76-level Ocean tower at Surfer’s Paradise.

“Many builders of units have become bankrupt, so then people are not building. It’s no use talking about how good the housing market is if the unit market, which is an important part of the housing market, is not going up anywhere at near the same rate,’’ he said.

Mr Triguboff said it was time the federal government looked seriously at assisting the unit market because people got financial assistance from the government when buying houses.

A Meriton apartment block planned for Parramatta.

Some unit buyers can, however, enjoy first home buyer stamp duty concessions, a $25,000 HomeBuilder Grant until December 31 for apartments valued up to $750,000, or a $15,000 HomeBuilder Grant from January 1, 2021 for apartments valued at up to $950,000.

Nevertheless, Mr Triguboff said apartment rents were not rising because people preferred to invest in houses, which were enjoying solid rent rises.

In Melbourne, for instance, apartment rents continue to drop, falling 7 per cent in the year to November, according to CoreLogic data. Sydney apartments rents dropped 5.4 per cent over the same period.

In comparison, Sydney house rents jumped 1 per cent, Brisbane house rents were up 2.2 per cent and Adelaide were up 3.3 per cent for the year to November.

Mr Triguboff said rents had not gone up because many people now preferred to buy cottages as prices went up.

“If the government wants units then the investors must be helped who will start purchasing. The units will rise in price and many will be built.

“The unit market is the one that is affected by lack of students and migrants. It’s not enough that cottages are moving so much — units which are almost as important in numbers must also move up.”

Harry Triguboff

Mr Triguboff said sales were improving at all his developments, some more than others.

“I would say overall apartment prices have moved up 5 per cent in the past three months,” he said, adding that sales at Meriton’s 180 George Street tower in Sydney’s Parramatta were doing well.

Questioned about the burgeoning build-to-rent market, Mr Triguboff said state governments have been trying hard for years to make the apartment schemes operable but to date had not succeeded, mainly because rents were too low and investors were not interested.

“Investors want a return. They can’t get a return because the rents have not gone up, they have come down.

“The idea of build-to-rent is very difficult to sell. If I buy a build-to-rent I have to keep it for 15 years. After 15 years they have to approve my strata plan. If they are serious about it they should, say, hold it for five years — not 15 years — and they should approve the strata plan up front.”

Mr Triguboff said tax breaks could be offered to build-to-rent investors which would help get it off the ground.

He called for the government to help investors by opening the overseas borders as the states did. “We will then have an influx of people and that will help rents to go up and more units will be built,” he said.