Western Australia’s property market could be poised for a decade of strong growth, according to one of the nation’s leading property developers.
Nigel Satterley of Satterley Property Group told The Australian Financial Review that he expects property prices in Perth to rise a modest 6 per cent this year before a seven to eight year growth spurt of between 7 per cent and 10 per cent each year.
“There is population growth, growing confidence and for the first time in nearly two years we have actually seen people buying a block from, say, $285,000 to $550,000,” he told the daily.
“We haven’t seen people buying the more expensive blocks because they can’t sell their houses, and I guess they have a lot of things on hold.”
According to Mr Satterley, Satterley Property Group will accelerate the release of its more expensive holdings because of the increased demand for the “upper-market product.”
“All the sales in the past couple of years have been $180,000 to $240,000. Now there are indications of sales in the suburbs up to $550,000 – the market is alive.”
Data from the Real Estate Institute of Western Australia found that the median house price in September quarter was $462,000 – up from $420,000 recorded in the December 2008 quarter.