A $40 million proposal to relocate Bunnings from Bunbury to Dalyellup has been knocked back by planning authorities, with a number of objections, including from builders Summit Homes Group, Scott Park Group and Dale Alcock Homes.
The Western Australian Planning Commission’s Statutory Planning Committee met on Wednesday to deliberate a contentious development application for an 18,858-square metre Bunnings warehouse across two lots on Bussell Highway, Dalyellup.
Other features of the proposed development, which involve Bunnings moving from the Bunbury Homemaker Centre to residentially zoned land in Dalyellup, include a café and 396 car parking bays.
Proposed by SLR Consulting on behalf of Claradon Property, the plan was voted down four to two, with only WAPC member Paul Lakey and SPC member Sean Morrison in support.
Claradon Property is owned by the family interests of Business News’ chairman Elton Swarts, as shown in an Australian Securities and Investments Commission document.
Basis for refusal
Both WAPC chair Emma Cole and deputy chair Ray Haeren commented on the proposal being one of the most challenging determinations of late, ultimately both standing against the proposal as they said there was too much uncertainty over zoning and alignment with the structure plan.
Reading out the decision on Wednesday, Mr Haeran said there was a need for “broad conversations … to be had around how that centre is ultimately developed”.
“The issue is also not around that this has to be residential land, but it’s around the process which is undertaken to make that determination and to provide a framework and level of certainty,” he said.
“It is on that basis that I put forward this alternative.”
The alternative motion comprised three reasons for opposing the development, including the site being outside the Dalyellup District Centre and recognised commercial or industrial precinct, the scale and nature of the proposal impacting on the intended character and amenity of the area, and the bulky goods or large format retail project not aligning with the Dalyellup East Structure Plan.
It was deemed “not contextually appropriate”, with “insufficient justification” given to support the departure of Bunnings from the Homemaker Centre 10km away and “whether it represents the highest and best use of the subject land”.
The owner of the Bunbury Homemaker Centre is Bunbury-based commercial development and leasing company Citygate Properties, directed by Steve and Geoff Prosser.
Geoff – a prominent businessman – was also a former federal politician, with the Prosser family featuring in Business News’ 2024 and 2025 Rich List publications.
Steve and Geoff Prosser. Photo: Citygate Properties
Deputations in opposition
The structure plan identifies the proposed site for residential development, which was a large focus of the 10 deputations against the plan heard in the meeting on Wednesday.
Amongst the deputations in opposition of the development was a contribution by Summit Homes South West regional manager Justin Trewren, on behalf of residential builders Summit, Scott Park Group, WA Country Builders, Dale Alcock Homes and Taycot.
“There is no shortage of people wanting to build and that need a new home," he said.
"There is no shortage of tradespeople wanting to build these new homes.
"What there is a shortage of is available land.”
Mr Trewren said the South West builders were "desperately searching for opportunities" and claimed the development was taking away around 14 hectares of residential land.
"(The development) would be taking away shovel ready land that could accommodate more than 100 homes in a prime location only 15 minutes from the port and 5 minutes to the regional hospital which is currently undergoing a multi-million dollar upgrade," he said.
"Where are the workers for these expanding facilities going to live?”
Several members of the SPC and the team behind the development challenged the use of the term 'shovel ready'.
For land to be considered 'shovel ready', the land must go through the planning process and the landowner would have to want to develop the land in this way.
Mr Trewren said the landowner could either develop it for a residential project or sell the land – saying there were a number of interested parties.
Of the 220 submissions received during the public consultation period, 34 (or 15 per cent) were against the development, 181 (or 82 per cent) were in support and five were neutral.
South West Minister Don Punch was one of the 15 per cent against the development, saying the proposal was “not in interest of the community in a housing crisis”.
Anglicare WA also made a deputation along the same lines.
Several government authorities, both local and state, were in support of the development.
538 Bussell Highway, Dalyellup. Photo: Google Earth, 2022
The Shire of Capel expressed support for the plan subject to certain conditions, including its alignment with the structure plan and on the basis that the applicants would “establish a highly accessible service commercial precinct that enhances Dalyellup’s entry statement, promotes activity, and provides an appropriate interface between residential areas and regional transport corridors”, according to the SPC agenda.
The State Referral Coordination Unit was engaged through the process and consulted with state government agencies with “no substantive concerns raised in relation to the proposal that could not be addressed by conditions of approval”.
However, the City of Bunbury spoke out against the application, citing it as being inconsistent with the planning framework.
Bunnings’ vision since 2012
Shire of Capel acting director of community planning and development Isabel Fry spoke for the development, as did a separate deputation consisting of SLR Consulting’s Daniel Lewis, Mr Swarts, Bunnings head of property Jason Eden and property portfolio manager in WA and the Northern Territory Andrew Stephens, Thomsons partner in the national property and development team Julius Skinner, and Colliers director Jake Lynch.
Mr Lewis pointed out there had been plans for a third Bunnings store in the area, at Dalyellup, dating back as far as 2012.
With the land since undergoing fragmentation and subdivison, he said this was the only possible site available in the area for the development.
Mr Eden said the Homemaker Centre was not fit for purpose anymore.
"The reality is the existing store is circa 25 years old, a first generation Bunnings," he said.
"It's small, not fit for purpose and the new site is around 18,000sqm.
"If this was approved and construction costs would allow us to open straight away then it would make sense for us to relocate there.
"There is nothing that is imminent to go to now.
"That’s the problem."
Mr Lewis also said that high construction costs meant a residential development was not viable.
"Bulk costs and civil costs are significant which is why a residential development has not occurred and a commercial development makes sense," he said.
Following the meeting, Bunnings director of property and store development Garry James issued a statement.
"We're disappointed by the decision of the Western Australia Planning Commission to deny the development application for a new store in Dalyellup," he said.
"We will take some time to review the outcome and consider our next steps."
