Property developer Nigel Satterley has confirmed plans to bid for the 61ha Irwin Barracks site at Karrakatta, proposing a major residential precinct of about 2000 homes if the Commonwealth sells the land.

Satterley said the site could accommodate a mix of four to eight-storey apartments, townhouses and single-storey homes, creating what he described as a master-planned community suitable for residents ranging from people in their 20s through to their 80s. He estimated the average price of homes across the development would be about $1 million.

Irwin Barracks is one of two major WA defence properties expected to be sold as part of a Federal Government program forecast to raise about $3 billion nationally. The barracks has operated as a military training area since 1948 and currently accommodates about 200 Australian Defence Force personnel, 50 Australian Public Service staff, 1150 ADF reservists and 250 cadets.

Under the proposed Defence changes, personnel based at Irwin Barracks would relocate to a redeveloped Palmer Barracks in South Guildford. Defence Minister Richard Marles previously said proceeds from property sales would help fund military equipment and upgrades to essential bases.

The Commonwealth commissioned specialist geotechnical, environmental, planning and historical assessments of defence properties before deciding which sites could be sold. Assistant Defence Minister Matt Keogh said the review considered the condition of assets and the cost of bringing facilities up to modern requirements, with some Irwin Barracks infrastructure described as several decades old.

Satterley said he was extremely interested in acquiring Irwin Barracks once the formal sale process begins, but had less interest in the Leeuwin Barracks site in East Fremantle because of potential heritage issues.