Harry Triguboff says Sydney apartment price growth was now flat

Billionaire developer Harry Triguboff says Sydney apartment price growth was flattening.

And the Meriton boss expects some rival developments will stall as the heat came out of the market.

But Meriton, which last week started work on a 200-unit and a 400- unit project in Sydney’s Mascot and 500 units at nearby Rosebery, was still going strong.

“We are going flat out,” Mr Triguboff told The Australian.

However, he warned against the tightening of lending to apartment investors and offshore buyers, with news yesterday of Westpac following rivals ANZ and CBA in restricting lending for foreign buyers.

Westpac will decline all mortgage applications from non-residents, temporary visa holders living overseas and those with foreign self-employed income.

Mr Triguboff warned the banks could create a self-fulfilling prophesy of falling apartment prices by lending less at settlement than indicated when contracts were signed for off-the-plan sales.

In its recent biannual review of financial stability, the RBA noted the dominance of Chinese buyers in Sydney and Melbourne and the risks posed if China’s economy stalled or Beijing clamped down on outbound capital flows.

Melbourne apartments would have a tougher time, Mr Triguboff tipped as prices — and therefore development margins — were lower than in Sydney.

Demand for apartments in Sydney remained strong although price growth was flat, The Australian reported Triguboff saying.