Highrise Harry: Apartment prices are plumetting

Meriton founder, “Highrise” Harry Triguboff, claims that the prices of apartments at the top end of the market have slumped by around 20%, compared with falls of 10% for other apartments:

Apartment kingpin Harry Triguboff said luxury units had the largest falls of around 20 per cent while units at the lower and medium range dropped 10 per cent…

“There is a very limited number of people who wanted to pay the top price,” Mr Triguboff said…

Mr Triguboff painted a harsher picture of the outlook for new developments than the relatively steady established home market.

Meanwhile, Stockland – Australia’s largest listed residential developer – has welcomed the Morrison Government’s new stimulus package:

“We would welcome any demand stimulus measures to support the housing and construction market, as rising levels of unemployment and a decline in projected population growth place downward pressure on buyer confidence,” Stockland chief executive, communities, Andrew Whitson said.

Always back self interest.

Leith van Onselen

Comments

  1. Gee Scummo’s building grants are underwhelming. It is almost like they tested the waters of community opinion this and last week and decided against going hard on it.

    • $25K but you have to borrow $150k or more.

      Sounds like it is targeted to get the credit impulse moving more than jobs for tradies.

      • and only up to places valued up to $750k. Maybe it will pull price down to get under the cap.

      • even if the grant does create 150k of new debt for every $25k, that’s only $6bn – there i ussaly around $200bn of new mortgage debt a year in Australia

    • DominicMEMBER

      I reckon the budget is troubling them — they’re hell bent on introducing further tax cuts but more stimulus weighs against this. And they have the Covid overhang of debt to deal with. And a central bank who (publicly, at least) seems less keen to go hard on QE.

      Unless the economy starts motoring again, the budget is going to be a serious problem for them. There is basically no chance of a balanced budget, ever, but they’ll be keen to rein in the deficit.

          • Rorke's DriftMEMBER

            More likely I expect our property lobby has asked our Govt to ask the British to ask us if we’d take them. Only as a favour to our UK friends of course.

        • If they’re given any option they’ll come here. Who wants to freeze their butt off in the UK, a zillion miles from Asia?

          • Where possible, promote that the UK doesn’t have a CCP member as an MP, an entire state beholden to OBOR or universities like UQ in the thrall of the CCP.

  2. New apartments sell at a huge premium and to be honest most people have now wised up to the shonky finishes and quality of these so called “luxury” apartments. After Opal and other building issues people are staying away and rightly so. Strata in these building are also $10-15k a year.

  3. harry is renting his fully furnished serviced apartments as long term rentals
    https://www.domain.com.au/30-danks-st-waterloo-nsw-2017-14088765
    https://www.domain.com.au/14195198
    https://www.domain.com.au/2-bedrooms-528-kent-st-sydney-nsw-2000-14089680

    less than 10 listings and more than thousand units for lease … SQM that uses number of listings to calculate vacancy rate is so bad .. real vacancy is 10% higher in these inner city areas

    these 800 per week 2 bdr apartments used to be $250 per night

  4. Harry just up to his old tricks, playing the apartment Armageddon story, he then sacrifices a few lambs like discounting some of the cheaply constructed units, wait a bit, then hit govt up for help, like open the gates again….hes cunning but its a well walked path for him….

    • harry’s profit margin is 80% so even if prices fall by 50% he’ll still make more than double on every crappy unit he sells

      • As astute and cunning as HRH is he’s not making anything like 80% profit margins. Maybe 20% cash-on-cash. 25% on a great project. These are not IRRs which take into account time.

  5. Chris J says last two days the LiarLogic index is up and was still laughing at people that think RE is killing rest of the economy. So I responded with below and he blocked me. lol
    https://twitter.com/biasedworld/status/1268313725028589568

    EDIT: And Corelogic daily index is still down so he clearly gets the data from them. So according to Chris when index is negative it’s because of low volumes and when positive under same conditions it’s all legit. cnvt.

  6. GlendaFMEMBER

    “There is a very limited number of people who wanted to pay the top price,” Mr Triguboff said…
    Wonder why….!!!!???? Coz they’re still dog boxes even if they are considered ‘luxury’, you still have to cart your groceries from the car to the apartment for miles (granny trollies are soooo uncool), you still can’t guarantee that they are not going to crack, go up in flames, or have the neighbours balcony built a meter away from yours……and who in their right mind would pay those prices for those negatives in this time we now live in?

    • Chinese citizens. Also, money launderers (from China).

      You can be sure Triguboff is having daily meetings/phone calls with Scotty demanding the border be reopened.

  7. Harry is moving into land acquisition mode.

    Talk down the market to break your competition then gobble (or snap) up all the distressed development sites.