New resort for Lancelin

A 15,000 square metre beachfront site in the coastal holiday town of Lancelin will soon be home to a luxury bungalow-style resort, the first development of its kind for the town.

The developer, Fremantle-based Australian Development Consultants, has received approval for stage one and two of the tourism development on the site, which is currently home to a caravan park.

Plans for stage one include the construction of more than 30 two-storey bungalows, with a caretaker's residence, pool and shop.

ADC director Greg Caird said the company was now working with the Shire of Gingin and Tourism Western Australia to develop and improve the product mix.

Ideas currently being floated include splitting the bungalows into separate one-, two- and three-bedroom units, or constructing the apartments in a terrace-style format, which would increase the number of units to about 38.

Mr Caird said the development had received widespread support from the local business community, with the local council highly engaged in the planning process.

"The council recognised that there's no real upmarket accommodation in Lancelin. This is providing something the business community, especially up here, has wanted for a long time," Mr Caird told WA Business News.

An hour's drive from the Perth CBD, Lancelin is a small fishing town popular with tourists for its water-based activities including fishing, boating, snorkeling, surfing and scuba diving.

Tourism in the region is expected to receive a boost with the completion of the Indian Ocean Drive, currently under construction, which will connect Perth's northern suburbs with coastal towns and tourist destinations up to Dongara.

The road is expected to encourage tourism developments along the coastal stretch, as well as open up the coastline to the motoring public and provide a faster and improved link to Perth.

"That's the opening of the corridor and Lancelin is right at the beginning," Mr Caird said.

"This [development] is hopefully the beginning of a metamorphosis of change up there. This will be a cornerstone development."

ADC is currently assessing a number of options for stage two of the development, which encompasses the part of site currently housing the caravan park.

That plan could potentially retain some of the motor home sites,

In addition to the Lancelin tourism development, ADC is working on three other tourism developments, located in the state's South West.

The $22 million Moses Rock development, an integrated viticulture and tourism development on Caves Road, comprises 14 three-bedroom strata-titled chalets and has an October 2009 completion date.

ADC is also behind an 11-chalet development on the site of Margaret River winery Q Wines called Wilyabrup Gardens, and a bungalow resort-style development called Cape View Beach Resort on Abbey Beach.