The month in review: Perth
By Herron Todd White
November 2009
The recent opening of the Kwinana Freeway extension
and the new Forest Highway is set to save 30 minutes from
the Perth to Bunbury journey, according to Main Roads
WA. The freeway extension provides an alternative route
to the Peel area from Baldivis. It should assist in relieving
some of the congestion experienced during peak hours
and reduce the volume of traffic travelling along Ennis
Avenue, Mandurah Road and the Old Coast Road.
One of the key benefits closer to home will be the reduced
travelling times from the Perth CBD into Mandurah and
the more affordable suburbs around the Peel district are
set to benefit. Many of the suburbs that witnessed an
increase in demand after the Perth to Mandurah rail line
opened are even more attractive, thanks to the improved
road access, although these benefits were factored in to
land values when the new estates came on line in 2007
and 2008, and the area remains oversupplied.
Construction of the new Fiona Stanley Hospital is nearing
commencement in the southern suburb of Murdoch,
adjacent to the existing St John of God hospital. With
an estimated cost of $1.8 billion, the 640 bed hospital is
expected to be completed by 2014. Neighbouring suburbs
are set to benefit as related facilities will be attracted to
nearby commercial and industrial developments which
are currently experiencing relatively high vacancy rates.
The ‘Latitude 32’ development will comprise some
1,400 hectares of land proposed for various industrial
and commercial uses. The proposed development
is considered to be one of the largest industrial
redevelopments ever undertaken in Australia and will
be positioned in the southern suburbs, to the north of
Rockingham. The project is expected to cater for 10,000
jobs and has an anticipated development timeline of 30
years. Once underway, Latitude 32 will boost employment
opportunities through the southern suburbs and bolster
the developing residential estates which have emerged
along the Kwinana Freeway.
Whilst the State Government has not stated that the
northern train line extension through to Butler has
been cancelled, there has been little visible progress
on the extension since it was placed under review last
year. The extension was a selling point for many of the
developing suburbs along the northern coastal fringe
and would assist relieving some of the congestion
experienced north of the end of the Mitchell Freeway.
The freeway has been extended through to Burns Beach,
with the suburbs further north directed onto smaller
inter-suburban thoroughfares. Whilst the northern fringe
suburbs continue to expand and with works commenced
on the coastal suburb of Alkimos, traffic flow and public
transport facilities will need to be expanded over the
coming years.
Inner city apartment living remains oversupplied, with
the demand waning over the previous 12 – 18 months.
The Perth CBD severely lacks the inner city entertainment
and dining opportunities of our cousins in the eastern
states, with no real drawcard to bring people into the city
after traditional work hours, and no incentive for people
to swap suburbia for an apartment whilst there are few
facilities nearby. A focal point is required to revitalise the
CBD and the river foreshore. Several suggestions for the
redevelopment of the foreshore have been seen as either
too dramatic or not dramatic enough. Construction of
the new Perth Arena entertainment complex is under
way on the north western fringe of the CBD, which is a
good first step, albeit well overdue. Leadership is required
by the State Government to finalise and commit to a
redevelopment of the foreshore that will be the drawcard
the CBD requires to be seen as a social destination, not
simply a place of work. It is important that Perth maintains
its identity and doesn’t simply copy a Melbourne or
Brisbane model, although a blend of the two may fit the
bill.
Whilst it is not an infrastructure change, the state
government is currently reviewing the planning approval
process. It currently takes approximately three years to
create a residential lot, from purchase of the englobo
parcel of land to release of the lot. This difficult and
involved planning process was the root cause of the
under supply of lots in the boom time of the market.
The big question is whether a review and any resultant
outcomes can be implemented in time for the next spike
in demand.
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