Perth Council Approves $42m Riverside Precinct Overhaul as City Tackles Housing Shortage

Perth's City Council has greenlighted a $42 million redevelopment of the Riverside precinct, marking one of the most significant planning decisions in months and sparking fresh debate about the city's housing future.

The decision, endorsed at Monday's council meeting, paves the way for mixed-use development along the Swan River corridor between East Perth and the CBD. The project will comprise 340 residential units—with 15% designated as affordable housing—plus retail spaces and a 2.5-hectare public park. Council estimates the precinct will attract approximately 800 new residents once complete by 2029.

The approval comes as Perth grapples with mounting housing pressure. Latest data from the Real Estate Institute of Western Australia shows median house prices in established suburbs like Subiaco and Cottesloe have climbed 8% year-on-year, while rental vacancy rates across the metro area remain below 2%.

"This development responds to genuine demand," said Council's planning director in a statement released following the vote. "We're seeing young professionals and families priced out of traditional neighbourhoods. Riverside offers proximity to employment, transport links, and the river itself."

However, not all councillors supported the measure unanimously. Three members raised concerns about parking provisions—the development includes 420 bays across two underground levels—questioning whether this adequately serves both residents and expected retail traffic. Community groups from nearby Mount Lawley and Maylands have also lodged formal objections, citing potential strain on local schools and medical services.

The council simultaneously released a draft housing strategy addressing the city's broader affordability crisis. The document, open for public consultation until July 23, proposes expedited approval pathways for developments meeting strict affordability quotas and suggests incentives for granny flats across the metropolitan area.

Separately, this week saw heated debate over proposed rate rises for 2026-27. The council is considering a 3.2% increase to fund expanded waste management services and road maintenance across suburbs like Fremantle, Cannington, and Armadale. A public forum scheduled for mid-July at the Perth Town Hall will give residents opportunity to respond before final council decision in August.

Parking remains contentious citywide. The council confirmed it would trial dynamic pricing at Elizabeth Quay car park—rates rising to $8 per hour during peak times—beginning in August, a move aimed at improving turnover and funding public transport improvements.

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