Zoning shake-up could unlock thousands of homes in Perth's tightest rental market

A contentious rezoning proposal affecting 47 hectares of industrial land along the Joondalup Drive corridor could reshape one of Perth's fastest-growing suburbs, potentially unlocking capacity for 3,500 residential apartments within a decade.

The Western Australian Planning Commission is reviewing a submission to reclassify land currently zoned for light manufacturing and logistics between Connolly and Joondalup's town centre as mixed-use residential. The move comes as Perth's median property value climbs toward $700,000 and rental vacancy sits at a critically low 0.8%—well below the healthy 3% benchmark.

Industry observers suggest the rezoning addresses a fundamental supply crisis in Perth's northern corridor. Joondalup and surrounding suburbs including Wanneroo have absorbed significant population growth over the past five years, yet development has remained constrained by limited available land zoned for medium-density housing.

"What we're seeing is a mismatch between where people want to live and where councils permit them to build," explains recent analysis from the Urban Development Institute of Australia WA chapter. The northern suburbs account for roughly 22% of Perth's population but a smaller proportion of new residential approvals.

Current industrial sites along Forest Drive and Joondalup Drive near the Joondalup Shopping Centre precinct remain underutilised by their original purpose. Declining demand for traditional warehouse space—driven partly by e-commerce logistics models favouring larger regional facilities—has left pockets of lower-value industrial land vulnerable to market pressure.

The proposal would introduce 6–8 storey apartment buildings alongside ground-floor retail and services, aiming to create a mixed-income residential neighbourhood with improved walkability to public transport nodes. Preliminary designs show capacity for studios and one-bedroom units priced below the current median, potentially easing pressure on renters facing 15% annual growth in typical lease costs.

Objections have surfaced from existing light-manufacturing operators and some local residents concerned about traffic impact and infrastructure capacity. The City of Joondalup has flagged concerns around parking, although the proponent's transport modelling suggests reduced car dependency through proximity to the bus interchange and potential future rail extension along the Joondalup Drive median.

State planners are expected to issue a decision within three months. If approved, the first stage could break ground by mid-2027, delivering initial units by 2029. Similar rezoning exercises are being mooted for underperforming industrial zones in Malaga and Osborne Park, signalling a broader strategic pivot toward urban intensification as Perth's rental crisis deepens and land availability tightens across the metro area.

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