‘It’s dead’: Claim Melbourne has less life than a morgue, thanks to Andrews and Allan

A land development giant says Victorian Labor has taxed the property industry “to the hilt”, killing Melbourne and resulting in more activity at a funeral parlour than in the once-great city.

Nigel Satterley, who has already snapped up Kingswood Golf Course, wants to stockpile more land in “dead” Melbourne because property prices will continue to fall.

Australian land development giant Nigel Satterley says the Victorian Labor government — under Dan Andrews and Jacinta Allan — has taxed the property industry “to the hilt”, killing off Melbourne and resulting in more activity these days at a Tobin Brothers mortuary than in the once-great city.

“It’s like Victoria has got a financial haze over it. Tobin Brothers have more activity in their North Melbourne mortuary than downtown Melbourne. It’s dead,” Mr Satterley said.

“All the taxing, the confidence, a lot of people are worried about the direction of what I consider is the best city in Australia, Melbourne. A lot of very good families in Melbourne are concerned about it.”

Mr Satterley’s company, based in Western Australia, is Australia’s biggest private residential land developer and has a significant stake in the Melbourne market.

Mr Satterley says there’s more activity in funeral homes than in Melbourne.

The Rich Lister told the The Australian Financial Review he was considering banking more land in Victoria as he anticipated prices would soften for years to come.

In March this year, the Satterley development group announced it had finalised the purchase of the 53.4 hectare former Kingswood Golf Course in Dingley, for about $220m.

That tract of prime land had the capacity for about 800 homes, at a median lot price of about $440,000, Mr Satterley said at the time.

He told AFR this week the Andrews-Allan Labor government’s land taxes had taken the wind out of the Victorian economy.

Nigel Satterley several years ago.

“It’s had a huge negative impact on Melbourne, taxing the property industry to the hilt,” he said.

“We want to try and add stock over the next 12 months … we’re hoping there might be some opportunity to buy some things, and add to the land bank. We don’t see the market recovering for about 18 months.”

While he was very positive about the future in WA, “in Melbourne everyone is cautious”, Mr Satterley said.

SQM Research managing director Louis Christopher echoed his sentiments, saying Melbourne was facing up to a three per cent decline for the year, with high-interest rates and a slowing economy contributing to the fall.

“The economy is slowing, and then you’ve got the disincentive for property investors to invest in Melbourne driven by some pretty hefty property prices,” he said.