Red tape blocks 20,000 South West homes as WA housing shortage bites
A housing precinct in WA’s South West expected to offer up to 20,000 homes has still not received the green light for development from the state government, despite the project being launched a decade ago.
The Shire of Dardanup’s Wanju City project officially began with a naming ceremony in 2016, with plans to deliver between 15,000 and 20,000 units to create a precinct that would complement existing services and facilities already available in greater Bunbury.
Shire chief executive Tyrrell Gardiner said the local council was ready to move forward and called on the state government to ensure the critical growth area could be realised.
“Dardanup Shire is poised to deliver one of Western Australia’s most significant new growth areas through Wanju City, which is expected to accommodate 15,000 to 20,000 homes and up to 50,000 residents,” he said.
“The Shire remains confident in Wanju’s capacity to make a significant contribution to the State’s housing supply, but we need clear and coordinated state government support to unlock the next phase.
“This includes investment and advanced planning for critical infrastructure such as water, sewer, power and telecommunications so that development can begin without further delay.”
The state government announced in its last budget that a total of $4.7 billion was allocated to housing; This includes $694 million for DevelopmentWA to create thousands of new lots across the state through residential land development.
However, it was a surprise for Gardiner that the Wanju proposal was not included in the list of projects.
“We would have loved to have seen some adoption of this project from the state government at that time,” he said.
“The population of the Greater Bunbury area doubles on average every 30 years.
“When we look at other points of growth potential in the region, it is not possible for Bunbury to go further west.
“The limit of where they can go is probably up and down the coast, so the proposal for Wanju as a new area is, in my opinion, the sweet spot to drive growth for the area.”
WA opposition housing spokeswoman Sandra Brewer, who grew up in the area, said the lack of budget funding confirmed Wanju had gone from stagnant to stunted.
“Despite the government once touting it as WA’s newest city with the potential for 18,500 new homes and 16 new schools, headlines stretching back to 2022 were warning that plans for Wanju had stalled,” he said.
“Having grown up in the Dardanup Shire, I know local people are frustrated by the lack of affordable housing and ever-increasing rents.
“Wanju could provide many Western Australians with the chance to build a bright future in the South West, but once again we have seen this development fall short of the state budget.”
Minister for Planning and Lands John Carey said Wanju was a long-term urban development project aimed at accommodating growth in the coming years, noting that a significant amount of supporting infrastructure was required for any development to take place.
“In March 2020, the Western Australian Planning Commission approved the Wanju District Structure Plan,” he said.
“The COVID pandemic has fundamentally changed housing markets across the country, and interest from private land developers has been limited to date.
“In November 2023, WAPC initiated a review and amendment to the DSP, taking into account changing market conditions.
“WAPC is working collaboratively with the province and other government agencies to advance the change, noting that Wanju is a long-term urban development project.”
Gardiner acknowledged there had been delays due to a number of issues arising, including the development of the Wilman Wadandi Highway (formerly Bunbury Outer Ring Road) and the outbreak of COVID.
However, he added that progress had been delayed due to the lengthy state government planning review process, which has been going on for nearly four years, and that developers had shown strong interest in the site.
“We understand that this review is nearing completion and we hope it will be completed by the end of the year,” Gardiner said.
“There is already strong market interest with developers ready to move forward.
“However, the absence of this enabling infrastructure is currently hindering the provision of much-needed housing.”
Carey said there was a lot of active development already happening in the Greater Bunbury area, including Dalyellup, Eaton, Treendale and Treendale East.
“The state government is prioritizing the coordination of housing, housing subdivision projects and essential infrastructure services in Western Australia, including the $75 million Regional Housing Support Fund and the $665 million Housing Enablement Infrastructure Fund, which includes funding to unlock new land supply in the South West and Great South,” he said.
“The $120 million Infrastructure Development Fund also includes a regional stream for up-front service costs that constrain housing projects.”
Meanwhile, Gardiner said he will continue to work to advance the province’s vision for Wanju City and is more than willing to continue working with the provincial government to advance the development of the site.
The district is developing opportunities in the adjacent Waterloo Industrial Park, including rezoning land to support industrial development and residential expansion as well as potential future intermodal freight infrastructure that will further support job growth.
“Wanju represents a once-in-a-generation opportunity to deliver homes, jobs and infrastructure in a coordinated way for the South West,” Gardiner said.
“This is a truly unique opportunity and we want to do it well, but we need other levels of government as well.
“There are other players involved besides Dardanup Shire.
“So we need them on board to achieve this.
“We’re ready. We just need the others too.”

