The WA-based land developer has changed his tune on the Victorian capital.
Nigel Satterley has spoken favourably about the Melbourne market after lambasting the Victorian capital last year, saying it is in “soft recovery”.
Speaking at this week’s Property Council of Australia national property congress in Perth, Mr Satterley commented on the trend towards smaller homes, particularly in Melbourne.
"What we’re now seeing really, is very small blocks” he said.
“So Melbourne I will say is in soft recovery after three soft years.
“In Melbourne, the top selling block is 12.5 [square metres] by 22 [sqm], so 275 square metres.”
This compares to an average of 313sqm blocks in Perth and 373sqm blocks in south east Queensland, Mr Satterley said.
His comments on the Melbourne market followed his public berating of the city late last year, when he said excessive taxes in Melbourne had killed the property market in that jurisdiction.
Developers have expressed a growing interest in Melbourne this year, with home values trending in a positive direction after dropping by 3 per cent in 2024.
Satterley Property Group is one of the largest land developers in Western Australia and has a significant presence in Victoria.
Mr Satterley also referred to Property Council data from March showing that Australia is projected to be 462,000 homes behind the national housing target of 1.2 million homes by 2029.
“People are living on smaller lots and we know that over 80 per cent of people that live in Australia want to live on house and land," he said.
“Today in Australia there’s 460,000 shortfall, this is why rents are high and it will take a long time for it to ever catch up.”
Based on recent dwelling completion statistics indicating the nation is edging closer to its housing targets, the shortfall by 2029 is not expected to be as high as 462,000.
He also spoke about the growing popularity of the land lease model, where developers own land and rent housing to occupants.
Additionally, he said the build-to-rent market had decreased in popularity.
“Institutions are having a bit of a love affair with the and lease model, ... and also student accommodation
“Certainly, I think there’s a lot less interest in build to rent.”
Regional challenges
Fiveight chief executive Paige Walker, speaking alongside Mr Satterley drew attention ot the issues around building in regional WA.
She pointed to the Andrew and Nicola Forrest property developer’s proposed $20 million Cape Lodge project in Margaret River and its $85 million Exmouth resort.
She said given WA had the lowest unemployment rate, highest average weekly wage and fastest growing population and the highest construction cost in the nation made securing labour a significant challenge.
“You put all those four challenges together makes it really difficult to deliver housing and infrastructure,” she said.
“We have two regional projects, we’ve got one in Margaret River and we’ve got another one up in Exmouth.
“And when we’re looking at the building, there just isn’t the labour in the area, so all the hotel keys will be built in NSW and then transported across.”
