Oversupply of homes warning

City of Cockburn zone changes have prompted a warning from REIWA.
City of Cockburn zone changes have prompted a warning from REIWA.

Mr Groves said Coolbellup had steered away from its reputation as a poor area filled with government-housing into a suburb attractive to first-home buyers and investors.

But he believed proposed increases to residential zoning, particularly around the Coolbellup Town Centre where R80 zoning is being considered, would be too much for the suburb.

‘It will render close to the entire suburb sub-divisible in an area that is not in such high demand that would translate into an influx of people rushing to live there,’ he said.

‘Look at Cockburn Central. It’s been slower to develop than was expected and that’s on a railway station.’

Mr Groves believed a staged zoning approach would be the way to go.

‘Perth’s population growth has slowed from 3.3 per cent per annum in September 2012 to 2.6 per cent now and with a further 7500 apartments due for completion in and around Perth over the next 18 months, the challenge of oversupply in that sector of the market is real,’ he said.

‘Hopefully, investors and developers of Coolbellup buy and build to gaps in the market, namely semi-detached two-bedroom villa style homes on single levels or townhouses.’

Cockburn Mayor Logan Howlett was confident the strategy would work to the benefit of the City’s changing demographics and average household makeup.

‘Coolbellup ranks as the second fastest selling suburb in Australia at the moment,’ he said.

‘People desire to live there due to its unique placement close to major employment, education, retail and natural areas.

‘It is also on the doorstep of what will become one of the largest health precincts in the southern hemisphere.’

Mr Howlett said a staged rezoning process was not preferred because it would distort development opportunities, creating further barriers in housing affordability and diversity.

‘Staged rezoning would fracture what is a very cohesive and strong community that currently exists in Coolbellup,’ he said.

‘Given that landowners will not choose to redevelop at exactly the same time, the redevelopment will naturally occur gradually over the next 10 to 20 years.’

Formal rezoning changes will be considered next month, with advertising to follow.