After 15 years of work to unlock one of Bunbury’s most significant development sites, Council has agreed to start the process of a major land transaction to develop the long-vacant former Punchbowl caravan park site in South Bunbury.
Published 19 May 2026
At its Ordinary Council Meeting on 19 May 2026, Council resolved to progress the development of Lot 211 and Lot 501 Holywell Street, South Bunbury – the 2+ hectare site commonly known as Punchbowl – into a residential housing estate with the potential to deliver approximately 53 new homes.
A site 15 years in the making
The Punchbowl site has been vacant for almost a quarter of a century and the City has been working to activate it since 2010. Previous attempts to bring the site to market were unsuccessful, and the City has spent years addressing complex site constraints including challenging ground conditions.
- 2010 to 2011: Site listed on the market – no offers received
- 2017: Land investigation and development agreement entered into with LandCorp to address site constraints
- 2020: Geotechnical enquiry undertaken
- 2024: Registration of interest process advertised – submissions received did not meet City requirements
- 2025: Interested party approached the City regarding residential development
- 2026: Further geotechnical assessments confirm ground conditions are manageable
- 2026: Council agrees to commence the process of a major land transaction
Recent geotechnical assessments confirmed that ground conditions are manageable through established engineering treatments, removing a significant barrier that had previously prevented the site’s development.
Bunbury Mayor Jaysen Miguel said this was a moment the community had been waiting for.
“Punchbowl has sat vacant while Bunbury’s housing shortage has grown more acute every year. Council has backed a pathway that will deliver new homes for families who need them – in a well-located coastal area, within two to three years. That’s a meaningful contribution to housing in our city,” Mayor Miguel said.
What’s being delivered
- Approximately 53 residential lots including ready-built homes
- A mix of lot sizes to suit different household and financial needs
- Local job opportunities during construction
- Activation of a long-vacant site that has contributed nothing to the community for almost a quarter of a century
- Public open space within the subdivision
- Ongoing rates revenue for the community once development is complete
- Proceeds directed to the City’s Strategic Land Management Reserve
About the development partner
The City is proposing to enter a joint venture with the Scott Park Group – part of Sumitomo Forestry Australia – an experienced Western Australian residential developer with the resources and track record to deliver a project of this scale. The joint venture model means the City retains a partnership role in the project, ensuring ongoing involvement in the development outcome rather than simply selling the land.
Housing diversity
The development includes a mix of larger lots (average 220m²) and smaller lots (average 150m²), providing housing options at a range of price points. This diversity is deliberate – it means the development isn’t a single product for a single buyer profile. It provides choice for first home buyers, downsizers, families and singles.
“This isn’t the City selling land and walking away. We retain a partnership role in making sure this development delivers for Bunbury,” Mayor Miguel said.
Vegetation and environment
The site contains established trees, predominantly introduced species. A vegetation review will be undertaken before any agreements are finalised. The City is committed to working with the development partner to retain trees where practicable, and the developer has indicated a willingness to do so as part of a site-responsive design. The subdivision will also include public open space, providing long-term green amenity for the new community and surrounding residents. Any development will be subject to standard planning and environmental assessment processes.
Part of the City’s broader land program
Punchbowl is one of several strategic City-owned sites being progressed to support housing and growth in Bunbury. The City has undertaken a comprehensive review of its landholdings and is working across multiple fronts to address the housing shortage – including land activation, strategic advocacy to the State Government, engagement with community housing providers, and planning reforms.
Other sites being progressed include 89 Beach Road (South Bunbury), Ocean Drive lots (Back Beach precinct), Lot 330 Ocean Drive and other strategic opportunities across the city.
Full details on the City’s broader land program are available here.
What happens next
This is not the final decision. A business plan will now be prepared for the proposed major land transaction and publicly advertised for a minimum of six weeks under Section 3.59 of the Local Government Act. During that period:
- The full proposal will be available for public inspection
- The community will have a formal opportunity to review the details and make submissions
- All submissions will be presented to Council for consideration before any final decision is made
- Following the advertising period, any proposed contractual arrangement must be presented to Council for consideration and approval before it is executed
The City is committed to transparency and welcomes community input.
Mayor Miguel said Council wanted the community to see what was being proposed and have their say.
The six-week advertising period is specifically designed for that. I’d encourage everyone with an interest in Bunbury’s future to review the proposal when it's available and make a submission.
Have your say
We want to hear from you. When the six-week advertising period opens, you’ll be able to:
- View the full business plan online and at the City’s Administration Building, 4 Stephen Street
- Make a formal submission
Details on how to view the proposal and make a submission will be published on the City’s website when the advertising period commences. Watch this space for updates.
Background
- Site: Lot 211 and Lot 501 Holywell Street, South Bunbury
- Size: 20,688m² (2+ hectares)
- Ownership: City of Bunbury — freehold
- Zoning: Tourism
- Former use: Caravan park (vacant for almost a quarter of a century)
- Development partner: Scott Park Group Display Developments Pty Ltd (Sumitomo Forestry)
- Proposed development: Approximately 53 residential lots with ready-built homes
- Targeted delivery: 2–3 years subject to approvals and remediation
- Community input: Six-week public advertising period under the Local Government Act