Perth Median house price will fall to $440,000 - Nigel Satterley
PerthNow May 17, 2011 12:31PM
BOOM & GLOOM - Developer says we've got a long way to go.
NIGEL Satterley says median house prices in Perth will drop to $440,000, citing consumer confidence and affordability as barriers to growth. "This is my honest opinion", the property guru with 40-plus years experience told PerthNow.
"In the established housing market, $465,000 is the median house price from Yanchep to Mandurah, at the peak she got up to about $520,000.
"But the median house price will bottom out at $440,000, which is about five per cent to go (down)."
As the head of Australia's largest privately-owned property development company, Satterley Property Group, Mr Satterley was adamant that Perth's current affordability issues will restrict any positive flow-on effect the resources boom may have on the local property market.
"If Perth isn't affordable, Perth won't grow and won't be able to benefit from the resources development," he added.
"I don't think that there will be a boom like the one we just went through (in 2005-06)," he said.
"There will never be a massive boom like the one before, there will be reasonable supply I think.
"We look closely, say two to four years ahead, and we can't see any land shortages."
Mr Satterley said the greatest challenge facing him as a property developer was "getting consumers comfortable that we are near the bottom of the market and that the outlook for WA is positive".
