A housing precinct that was supposed to deliver up to 20,000 homes in WA's South West has been stuck in planning purgatory for a decade. The City of Wanju project in the Shire of Dardanup was officially launched in 2016 with big promises — 15,000 to 20,000 lots, room for 50,000 residents. But the state government still hasn't signed off on the development, and the project was conspicuously left out of the recent $4.7 billion housing budget.
Shire president Tyrrell Gardiner says the local council is ready to go. "The Shire of Dardanup is ready to deliver one of Western Australia's most significant new growth areas," he said. But he's frustrated that the state hasn't unlocked the next stage. The shire needs investment in "headworks infrastructure" — water, sewer, power, telecoms — before any developer can start building. Without that, the whole thing stays on paper.
The state government poured $694 million into DevelopmentWA in the recent budget to create thousands of new lots across the state. But Wanju wasn't on the list. Gardiner said that came as a surprise. "We would love to have seen some embracing of this project from the state government at the time," he said.
WA opposition housing spokeswoman Sandra Brewer, who grew up in the shire, didn't mince words. She said the absence of budget funding confirms Wanju has gone from "stalled to stunted." She pointed out that headlines as far back as 2022 warned the project was stuck, even though the government once promoted it as WA's newest city with potential for 18,500 new homes and 16 new schools. "Having grown up in the Shire of Dardanup, I know the local community is frustrated by the lack of affordable housing and ever-rising rents," Brewer said.
Planning and Lands Minister John Carey said Wanju is a "long-term urban development project" and that significant supporting infrastructure is needed before any development can happen. He noted that the Western Australian Planning Commission endorsed the Wanju District Structure Plan in March 2020, but then COVID hit and changed the housing market. In November 2023, the WAPC started reviewing and amending the plan to reflect new market conditions. Carey said the WAPC is "working collaboratively with the shire and other government agencies to progress the amendment."
Gardiner acknowledged that delays came from the Wilman Wadandi Highway (formerly the Bunbury Outer Ring Road) project and COVID. But he also pointed the finger at the state's planning review process, which has been dragging on for about four years. He said the review is nearly done — hopefully by the end of the year — and that developers are keen to get started. "There is already strong market interest, with developers ready to proceed," he said. "However, the absence of this enabling infrastructure is currently holding back delivery of much‑needed housing."
Carey pushed back, saying there are already active developments in the Greater Bunbury area — Dalyellup, Eaton, Treendale, Treendale East. He said the state is prioritising housing through funds like the $75 million Regional Housing Support Fund and the $665 million Housing Enabling Infrastructure Fund, which includes money to unlock new land in the South West and Great Southern. The $120 million Infrastructure Development Fund also has a regional component.
But Gardiner argues that the region has limited room to grow. Bunbury can't go further west, and the coast is constrained. "The Wanju proposal as a greenfield site is, to me, the optimum spot to put growth for the region," he said.
"The population of the Greater Bunbury area doubles on average every 30 years."
— Shire president Tyrrell Gardiner
The Greater Bunbury area is one of WA's fastest-growing regions, but without new land releases, the housing crunch will only get worse. Rents are already rising, and affordable homes are hard to find. Wanju was supposed to be a solution — a planned city with homes, schools, and services. Instead, it's become a symbol of how slow-moving government bureaucracy can hold up development for years.
The WAPC review of the district structure plan is expected to wrap up by the end of 2026. If that happens, the shire can finally start pushing for state funding for the essential infrastructure. But without a clear commitment from the government, the project could remain in limbo — and 20,000 homes will stay on the drawing board.