Australian Property Market Faces Catastrophe Without Immigration Boost, Billionaire Warns

Australia's property market is heading towards a "catastrophic disaster" unless the government significantly increases immigration and reduces planning regulations, according to Meriton founder Harry Triguboff. The billionaire developer, who is 93, warned that declining property prices will sap Australians' motivation to work hard, creating a "terrible mess in this country."

"What is the point of working hard if prices drop?" Triguboff stated in a piece published on the Meriton website. He attributed the current market weakness to repeated interest rate hikes and recent government tax changes targeting negative gearing and capital gains.

Triguboff expressed concern that potential buyers are adopting a "wait and see approach," anticipating further price drops. He also criticized the "Big Four Banks" for making it difficult for prospective buyers to secure loans, contributing to indecisiveness in the market. "The banks must give loans otherwise both the banks and the buyers go broke. It is just not sustainable," he added.

Regarding immigration, Triguboff emphasized the need for growth but stressed the importance of selecting the right migrants to ensure mutual benefit. He challenged official unemployment figures, suggesting the actual number of people seeking work is higher than reported. "Many people want work and can't get it," he said.

Queensland emerged as a point of optimism for Triguboff, noting that bureaucrats in the state are more receptive to discussing and addressing property market issues. He contrasted this with other states where, he claims, bureaucratic processes are "stagnant" and hinder progress. This difference, he suggested, is why people are leaving New South Wales for Queensland. New analysis indicates that Queensland has become Australia's top destination for interstate migrants, with a significant number originating from NSW.