Investment in Perth’s South West corridor equivalent to the cost of 10 Olympic Games

With new projects set to cost as much as $70 billion earmarked for Perth’s south-west corridor, the region is about to embark on one of the biggest development phases in WA history.

A union of six local government bodies, the Perth South West Metropolitan Alliance, has called for local, State and Federal governments to collaborate on supportive infrastructure, from roads and freight to schools and housing, under a model that echoes the planning efforts for Western Sydney Airport.

Alliance director Warwick Carter said efforts to prevent a skills shortage and a boom and bust cycle over the next 20 years need to start now, as the region embarked on 12 projects the alliance conservatively estimates is worth $70b.

“We look at it as being the same value as 10 Olympic Games,” he said. “It is a huge opportunity if we can harness it.”

The group’s economic modelling includes the AUKUS deal, which the peak body expects will go ahead despite being under review by the US Government, as well as associated Henderson defence precinct works that the Albanese Government recently indicated would require $25b over the next 10 years.

Cook Government initiatives were also factored in with the Westport container port development, the new women and babies hospital in the Fiona Stanley Hospital precinct, the Latitude 32 industrial estate and Kwinana Freeway upgrades, along with future planning for Fremantle harbour redevelopment, projects stemming from Made in WA initiatives for critical mineral refining and the South West Interconnected System upgrades required for the State’s energy transition.

Finally, the amount includes a frenzy of activity currently taking place within the Kwinana industrial area, including Synergy’s big battery project, Water Corporation’s desalination plant, AGL’s Swift power station expansion, and associated land and road works.

As all of the projects are earmarked to be up and running over the next two decades, developers are looking for opportunities to capitalise.

The West Australian understands at least two major housing developers are considering major residential developments in the area, to accommodate the region’s fast-growing population.

Mr Carter said the region’s population was expected to grow twice as fast as had been estimated only a few years ago.

Development firm Bluerock is seeking approval for a $36m, 167-dwelling development in Rockingham, which will help ease some housing pressure.

Local real estate agent Nola Tully said east coast housing investors had returned to the market after a brief retreat, with many citing the Federal Government’s $12b shipbuilding program for their confidence in the region.

While the defence industry will attract workers, Ms Tully said grandparents and siblings would also look to relocate to the area from the east to be near navy-employed relatives.

Mr Carter said that a proper plan for supportive infrastructure was crucial, especially as 1.7 jobs were likely to be created for every single defence job — in support sectors such as retail, child care and hospitality.

The WA Government estimates the ongoing investment in Henderson will support 10,000 direct jobs over the next 20 years.

Mr Carter said a strategic civil building agreement — which he likened to a civil equivalent of the shipbuilding agreement — would ensure works were properly co-ordinated and delivered, to minimise housing disruptions for the incoming workers.

He said the last thing the State needed was to lose skilled workers between projects.