In a recent interview, Meriton founder Harry Triguboff said interest rate rises would do little to battle Australia’s skyrocketing cost of living, claiming instead that the only way out of the housing shortage was to build up.
The billionaire developer has claimed the country is destined for recession without urgent government intervention, blasting the RBA’s handling of our inflation crisis.
In its May meeting, the Reserve Bank of Australia board raised the cash rate by 25 basis points to 3.85%, marking an 11-year high. This has, once again, put a squeeze on struggling mortgage holders.
“Unless we improve the way we run the place, we could easily have a recession,” Mr Triguboff said.
“I don’t believe that by raising interest rates you stop inflation - I don’t believe it.”
Mr Triguboff believes that the current housing and rental nightmare plaguing the nation could only be eased by increasing supply, supporting NSW Premier Chris Minn’s plans to build up instead of out in Sydney via apartment developments.
“We have to build more, we all agree on that,” Mr Triguboff said.
“He makes the right noises, he says we need apartments – 100 per cent right.”
Mr Triguboff goes on to emphasise the importance for federal, state, and local governments to cut red tape, slash charges, and speed up approvals in order to address the shortfall, what with only half of the estimated 350,00 new homes that Sydney needs currently in the pipeline.
“We have to also approve smaller ones and quicker,” he said.
He also insisted that better communication was needed between governments and developers, saying, “We have to know what they want to do, and they should know what we want to do.”
Mr Triguboff urges it was time for parts of Sydney that have traditionally been resistant to large developments to open up, adding that prices would be eased with more approvals.
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