Meriton boss Harry Triguboff has kicked off 2012 by demanding that the banks pass on rate cuts swiftly and in full.
Triguboff describes the argument banks put forward by the major banks following the December rate cut that they may not be able to pass on future rate cuts in full as "nonsense".
"Our interest rates have dropped, not risen. So the banks are better off again when they borrow," Triguboff writes on Business Spectator.
His attack follows a promise made last year that he would find out why "our famous banks" aren't always passing on all of the RBA rate cuts (after NAB passing on only 20 out of the 25 basis points from November's rate cut).
"I don't completely understand why at the moment, but I will find out the answers and then we will see what I do," he said at the time.
According to Triguboff banks are shooting themselves in the foot by being slow to pass on rate cuts.
"The banks should reduce interest rates quicker than the Reserve Bank, not drag the chain," he says.
"Being slow in reducing rates is bad for the banks themselves. There are many people who owe more than their properties are worth and they will only be able to service their loans comfortably and pay them back when the market starts rising again and repayments drop.
"People then will not be able to waste money on high interest and still spend money on other items," he says.
"And that is why the economy requires the banks to borrow overseas. For some unknown reason our 10-year government bonds are 3.74% and America's are 2.01%, Japan's are 0.97%, Britain's are 2.04% and Germany's are 1.94%. Are the American and British economies so much better?"
The Meriton boss (and Australia's seventh-richest man) also questioned the offshore buying habits of Australian banks and says they would be "wise to borrow in currencies with cheaper interest rates. And that would allow them to charge less".
In addition to having a go at the banks, Triguboff continues where he (and other property developers) left off last year by again criticising the role councils play in hampering property developers.
"One of the reasons that people overseas say our housing is overpriced is because of the high repayments which are caused by inefficient councils and high interest rates.
"Our councils are still under the delusion that people are against apartments. How come people flock to our apartments and are disinterested in outer cottages?
"This trend towards inner-city apartments is worldwide. And it won't change in a hurry. So councils must make codes which are economically feasible. And they must give certainty of floor space and speedy processing.
"This trend has already begun, but unfortunately it is uneven.
"Even though Queensland has more efficient councils, the Chinese don't buy there. In Sydney, we are only now awakening slowly, so developers run to Queensland, where they get approvals. Queensland will have too many units approved, and Queensland does not have the demand of Sydney. So by being slow in Sydney we will create a glut in the Sunshine State."
This article first appeared on Property Observer.
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