Waterbank ‘not suitable for development’

The state government has deemed the Waterbank precinct “not suitable for development”, following millions of dollars of investment at the East Perth land over more than a decade.

Planning, Lands and Homelessness Minister John Carey today described the six-hectare parcel, which national developer Lendlease handed back to the government in 2022, as an eyesore that did not warrant development.

The minister's comments follow a 18-month investigation into future uses of the land, triggered when Lendlease Group shelved its plans to develop on the site. 

“The state government has seriously investigated at a range of potential options for Waterbank, however, the advice is the land is constrained and not suitable for development,” Mr Carey said.

“We have undertaken extensive work to stabilise reclaimed land near the river’s edge and will soon commence more works to renew the Waterbank precinct for recreation purposes as well as enhancing connectivity and transport through the area.”

Speaking to media about the precinct later today, Premier Roger Cook said the land was unsafe to build on due to the unstable nature of the soil.

“What we now know is that the soil or the earth upon which Waterbank is based is highly unstable and not suitable for construction of dwellings or other buildings,” he said.

“We’re obviously going to have to remediate that ... and we’ll be able to use that land for other purposes; it'll be a great contribution to the amenity of the area.

“We have a lot of high-density housing around there [and this] will be a welcome opportunity for people to be able to recreate there, but the advice we have is that it’s not safe to build there.”

When asked why the government took so long to draw its conclusion, Mr Cook said a lot of time was spent negotiating with Lendlease about the use of the land.

The government spent $3.5 million to construct Trinity Avenue, which it says formalises access to to adjacent Trinity College. 

Mr Carey said the government would begin more work to renew the Waterbank precinct for recreation purposes as well as enhancing connectivity and transport through the area.

“Following completion of the road, new playing fields will be delivered on the Waterbank and we are working on an agreement with Trinity College for the use and care during school hours,” he said.

“Outside of school hours, the new playing fields will be available for public use, providing green space for the local East Perth community to use and enjoy.”

Lendlease, which has a $124.3 billion development pipeline, won a contract to build 1,000 apartments, a hotel, offices, retail and public spaces on the site.

At the time it pulled out of the project, Lendlease Group head of WA communities and development Anthony Rowbottam spoke about the difficulties facing the sector.

“No industry or market is immune from the impacts of supply chain disruptions and global uncertainty,” Mr Rowbottam said. 

“We are constantly monitoring our supply chain and have contingencies in place to respond to changing market conditions.”

Concerns have been raised about the site’s close proximity to the watertable, which would bring additional complexities to building on the site.

Lendlease spoke about the challenges around developing on the site, described as a sandpit, in 2018, but at the time was committed to pushing ahead with the development.

Works are expected to commence in coming months on the new playing fields.