Australia's largest independent land developer Nigel Satterley has confirmed what most investors have now realised, Western Australia's six year property boom has come to an end - with the $1 million-plus home market the only real exception.
Speaking at a WA Business News Success & Leadership breakfast this morning, Mr Satterley told the audience of 500 people that property prices had peaked and the market would start to settle down into single digit growth.
While predicting properties at the lower end of the market could slow to between four and six per cent, he tipped properties worth above $1 million would continue to benefit from Western Australia's economic prosperity.
"The $1 million properties won't grow at 30 per cent but they will drop to more sustainable levels of seven to 10 per cent. The growth of properties at the lower end has certainly topped out," Mr Satterley said.
"Commodity prices will soften in the second half of next year, and this will slow the property market down even further."
After regaling the crowd with tales from his 40 year career in real estate, Mr Satterley said the best investments remain house and land packages and coastal properties.
However, affordability and the plight of first home buyers still remain a major concern to him.
"Affordability in Perth and the regions is very serious, people will not come here unless they can afford to live here," he said.
"The great benefits of these times may not be fully appreciated ... because we can't get people here to work."
His final advice to the group was a cautionary note to bankers, warning that private land syndications were failing to sign investors up, and they would be wise to start making market valuation calls.
