Owning a house an important dream: Harry Triguboff

Multi-billionaire apartment developer Harry Triguboff has called on the Reserve Bank of Australia not to further increase interest rates.

Harry Triguboff in his office at Meriton. Picture: John Appleyard

Multi-billionaire apartment developer Harry Triguboff has called on the Reserve Bank of Australia not to further increase interest rates saying rate hikes have done nothing to reduce America’s rampaging inflation rate which just hit 9.1 per cent – the largest annual increase since 1981.

“Owning a house for people is very important,” Mr Triguboff, the founder of Meriton Apartments, says.

“Being owners of shares or super funds is not the same. A house is something the owners choose, enjoy and are attached to. How can one be attached to a piece of paper?”

These days Mr Triguboff says that because it’s harder to buy a property because of higher interest rates, people are not forking out.

“They don’t buy and they only pay rent and have more money to spend hence that is why retail spending and serviced apartments (prices) are still strong.”

Mr Triguboff also wanted to note that the inflation basket that the ABS looks at to measure inflation takes into account house prices, which in the quarter ending June 30 rose 5.6 per cent.

Mr Triguboff said that when next quarter’s CPI index comes out, the house price drops we are now experiencing, will conversely contribute to reducing the inflation we are seeing.

Meanwhile, the apartment tycoon has also stepped up his calls on the federal government to bring in more immigrants saying Chinese buyers had helped boost prices for his Meriton apartments group over the past 40 years.

“Foreign buyers have to be attracted again, because they created better prices, at present we are making it more difficult for them to buy,” Mr Triguboff told The Australian.

The apartment titan, who has just bought a third site in Surfers Paradise where he plans to build 1000 units in a series of 200-unit, 300-unit and 500-unit towers, said foreign students also need to be brought to Australia in larger numbers.

“They create a lot of rental demand and provide us with many workers besides studying,” Mr Triguboff said.

“Immigrants have to come. Migrants built this country…and we can’t stop it. We have a huge continent and someone has to provide the labour.

“It is easy for Israel and Switzerland because they have small areas of land to service.

“We are geniuses that we are doing so well with such a small population and huge area.”

In a wide-ranging interview, Mr Triguboff also called on state governments to reduce charges for building apartments warning that if excessive charges are not cut developers will stop building and the income governments receive from them will be reduced.

Commenting on the collapse of several building and development companies of late such as the Melbourne developer Caydon, Mr Triguboff said the government must ensure that more builders don’t go broke.

“Creating new building companies will be difficult,” he warned.

On a brighter note Mr Triguboff who personally owns more than 10,000 apartments said his rents are rising every week as are prices in his 20 serviced apartments.

“Room rates in serviced apartments are going up, it’s unbelievable, they are very strong,” he says.

“For the wellbeing of the nation and our people we must attempt to keep housing (prices) going up gradually and consistently,” he said.