Published 30 June 2026, updated 05 October 2026
At its Ordinary Council Meeting on 29 September 2026, Bunbury City 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 development is expected to provide increased housing supply including potential for permanent residential and short-term accommodation use.
Punchbowl, South Bunbury – Major Land Transaction
At its Ordinary Council Meeting on 29 September 2026, Bunbury City 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 development is expected to provide increased housing supply including potential for permanent residential and short-term accommodation use.
Community Consultation
The business plan for the proposed major land transaction is available for public inspection and the community was invited to make submission from 30 June to 11 August 2026.
- View the business plan: Here or at the City’s Administration Centre, 4 Stephen Street, Bunbury
All submissions were presented to Council for consideration at the Ordinary Council Meeting on 29 September 2026.
There will be a further opportunity to comment.
Once contract terms are negotiated, a detailed development plan will be prepared and the community will have another opportunity to provide feedback on the specifics of the development.
About the proposal
The Punchbowl site is a 2+ hectare (20,688m²) City-owned parcel of freehold land in South Bunbury, comprising the former Punchbowl caravan park. It has been vacant for over almost a quarter of a century.
Following a comprehensive review of its landholdings – and in response to long-standing community calls to activate this vacant site – the City identified Punchbowl as having strong potential to support residential development and contribute to Bunbury’s housing supply.
At its meeting on 19 May 2026, Council resolved to commence the process of a major land transaction – a proposed joint venture to develop the site into a residential housing estate. At its meeting on 29 September 2026, Council authorised the Chief Executive Officer to enter a joint venture agreement.
Under a joint venture model, the City contributes the land, the development partner undertakes the planning, subdivision, construction and sale, and both parties share in the returns, with the specific terms to be determined as the agreement is finalised. This approach allows the City to retain an ongoing interest in the development and influence the outcome, rather than simply selling the land outright.
Why this matters
Bunbury is experiencing a housing shortage. The City has been working to activate this significant site for over 15 years. Developing Punchbowl will:
- Contribute new homes to support Bunbury’s housing supply
- Activate a site that has sat vacant for almost a quarter of a century
- Generate local jobs during construction
- Deliver ongoing rates revenue for the community
- Put underutilised City-owned land to productive use
- Proceeds from the transaction will be directed to the City’s Strategic Land Management Reserve for future strategic projects.
The development aligns with the City’s Local Housing Strategy, which guides how Bunbury accommodates future growth and identifies the importance of increasing housing supply and diversity in well-located, established areas.
A site 15 years in the making
The City has been working to activate the Punchbowl site for over a decade:
- 2010 – 2011: Site listed for sale – no offers received
- 2017: Land investigation and development agreement entered into with LandCorp to address site constraints
- 2020: Geotechnical investigation undertaken
- 2024: Registration of Interest process – a joint venture proposal was received
- 2026: Further assessment confirmed ground conditions are manageable
- May 2026: Council resolved to commence the major land transaction process
- June – August 2026: Business plan advertised for public comment
- September 2026: Council authorises the CEO to enter a joint venture agreement
This timeline reflects the genuine complexity of activating a site of this size and history. The City has worked methodically over many years to reach this point.
The site
| Location | Lot 211 (26 Holywell Street) and Lot 501 (14 Holywell Street), South Bunbury |
| Size | 20,688m² (2.07 hectares) |
| Ownership | City of Bunbury – freehold |
| Zoning | Tourism (permits residential and short-stay accommodation) |
| Former use | Caravan park (vacant for almost a quarter of a century) |
| Current status | Business plan open for public comment |
Ground conditions
A geotechnical investigation has been undertaken on the site. It identified that parts of the site contain organic material and a peat layer that will require remediation before development –common considerations for low-lying coastal sites. The investigation confirmed these ground conditions are manageable through established engineering treatments. Site remediation will be addressed as part of the development process requirements.
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. Full details on the City’s broader land program here.
Contact
For enquiries, contact the City’s Economic Development Team on 9792 7000 or info@bunbury.wa.gov.au
This page will be updated throughout the advertising period. Last updated: 30.09.2026
Frequently Asked Questions
The City is entering a joint venture with Australian Real Equity Pty Ltd to develop the former Punchbowl caravan park site into a residential housing estate.
The detailed development (including the number, size and type of dwellings) will be determined during the development planning stage, which follows contract negotiation. The community will have a further opportunity to comment on those specifics at that time.
The specific housing mix, including any affordable housing component, will be determined at the development planning stage rather than as part of this current proposal. The City’s draft Council Plan includes consideration of its strategic land contributing to affordable housing outcomes, and this will be considered as the development progresses. The development is also designed to deliver housing diversity – a range of lot sizes and housing types that provide options across different price points. There will be a further opportunity for community input when the development plans are prepared.
This proposal is for a residential development delivered through a joint venture with a private sector partner – it is not a social housing project. Social housing is funded and delivered by the State Government through agencies such as the Department of Communities. However, increasing overall housing supply, as this development will, helps ease pressure across the entire housing market – including at the more affordable end. The City also continues to advocate to the State Government for increased investment in social and affordable housing in Bunbury.
Detailed vegetation assessment will form part of the due diligence and development planning stage. Any future development will be subject to standard planning and environmental assessment processes, and the community will be able to comment on the development plans at the next stage.
A joint venture allows the City to retain an ongoing interest in the development, influence the outcome, and share in the development value – rather than accepting a single upfront payment. It also enables the timely delivery of housing.
Proceeds will be directed to the City’s Strategic Land Management Reserve for future strategic projects that benefit the community.
Public advertising of the proposed disposal commenced on 30 June 2026 and closed 11 August 2026 under the requirements of Section 3.59 of the Local Government Act 1995.
A total of nine submissions were received during the advertising period. Two submissions were supportive, two submissions objected to the proposed JV, and five submissions provided general comments. Submissions were presented to Council for consideration at the Ordinary Council Meeting on 29 September 2026.
Once contract terms are negotiated, a detailed development plan will be prepared and the community will have another opportunity to provide feedback on the specifics of the development.