Property tsar Harry Triguboff rues the rising dollar

 

Credit:News.com.au

AUSTRALIA'S rising dollar has halted the rush of overseas money into Australia's residential property market, with the country's biggest private apartment builder, billionaire Harry Triguboff, saying sales at his Meriton Apartments have fallen 60 per cent since the dollar's surge.

Chinese buyers make up about 80 per cent of the approximately 1500 apartments Meriton builds and sells every year.

"They are worried that if the Australian dollar goes down, they will lose money," Mr Triguboff said.

"They compare our (apartment) prices to their prices. In their minds, our prices have gone up 20 per cent (due to the rising currency)."

On Thursday, the Australian dollar hit a record US99.94 cents, its highest level against the US dollar, and up 20 per cent from US83c in June.

The lack of overseas interest in new apartments would result in a weaker domestic building industry, Mr Triguboff said.

He argues that a property bubble - where prices "burst" - will not occur in the Australian market.

"There is no supply," he says, noting that the lack of new home building would keep a floor under prices.

Countering this was interest rates that were high compared with other countries.

"I think the banks are playing a very dangerous game," he says of indications banks would increase rates independently of the Reserve Bank.

The fall-off in overseas buyers would also dampen housing markets. However, Chinese and offshore buyers would return to Australia, Mr Triguboff said.

"The Chinese are in love with Australia. They will come back. They have been coming back to me for 20 years," he said.

In April, the federal government announced rules clamping down on foreigners buying Australian residential property after offshore buyers were blamed for inflaming rapidly rising housing prices.

They included preventing non-residents buying established Australian homes and requiring temporary residents - such as students - to sell their houses or apartments when leaving the country.

Read more about property tsar rues the rising dollar at The Australian.

Credit:News.com.au Image:IBtimes

Posted via email from millionplus's posterous