Published 02 October 2026
The City of Bunbury will enter a joint venture to develop the former Punchbowl caravan park site in South Bunbury into a house and land estate, after Bunbury City Council considered community submissions and gave its approval.
At its Ordinary Council Meeting on 29 September 2026, Council authorised the Chief Executive Officer to enter a joint venture agreement for Lot 211 and Lot 501 Holywell Street, South Bunbury - the 2.07 hectare site known as Punchbowl.
The decision follows a six-week public advertising period from 30 June to 11 August 2026, with submissions showing strong support for developing the site.
The development is expected to deliver more than 50 new homes across a mix of lot sizes, including ready-built homes rather than subdivided land alone. Delivery is targeted within two to three years, subject to approvals and site remediation.
The City will have the chance to shape the development plan during joint venture negotiations, and any development application will be assessed through the normal planning approval process.
Bunbury Mayor Jaysen Miguel said the decision was a turning point for a site the community had waited a long time to see used.
"Punchbowl has sat empty for more than 20 years while Bunbury's housing shortage has grown more acute every year," Mayor Miguel said.
“Council backed a pathway that will deliver new homes for families who need them, in a well-located coastal area, within two to three years.
"This isn't the City selling land and walking away. A joint venture means we keep a partnership role in making sure this development delivers the outcome our community expects."
The site operated as a caravan park and has been empty for more than 20 years. The City has been working to activate it since 2010. Geotechnical work in 2026 confirmed that ground conditions - including organic material and a peat layer that needs remediation - can be managed through established engineering treatments. That removed a barrier that had held the site back for years.
This joint venture is an important strategic land development initiative, supporting the Council Plan 2026 to 2036 Our Homes as well as the Local Housing Strategy 2021, which calls for more diversity in housing supply.
Under a joint venture, the City contributes the land, the development partner handles planning, subdivision, construction and sale, and net profits are shared in proportion to each party’s contribution. This gives the City an ongoing interest in the site and influence over the outcome, rather than a single upfront payment and no further say. It also helps get homes built sooner.
The City will now progress the joint venture agreement to ensure appropriate governance and arrangements are in place.
A detailed vegetation assessment forms part of due diligence and development planning. The site holds established trees, mostly introduced species, and the City will work with the development partner to keep trees where it can.
The City will start negotiating the joint venture agreement immediately and a detailed development plan will be prepared, covering design, layout, lot numbers and built form. Any development must go through standard planning and environmental assessment.
Updates will be published on the City’s website as the project moves ahead: Holywell Street Development (Old Punchbowl) - City of Bunbury