The City of Karratha is undertaking a new housing development to deliver 116 apartments in Bulgarra. This initiative aims to address the critical housing shortage in our community.

At its March 2024 Ordinary Meeting, the Council resolved to conduct an Expression of Interest (EOI) for Housing Development. The key goals of this EOI included:

• Providing details on undeveloped, development-ready lands within the Karratha town centre.
• Supporting the development of affordable housing, government housing, and private rentals/sales.
• Aggregating demand to support scale economies and improve investment yields.
• Inviting proposals for additional housing development on city-owned lands.
• Considering incentives to boost the feasibility of housing projects, such as discounted lands, rates incentives, long-term leases, and infrastructure support.

The project involves apartments built by a private developer on three City-owned lots in Bulgarra in a mix of one bedroom, two bedroom and three-bedroom apartments.

The properties are being leased to the Proponent for a period of 20 years where they will construct and operate the residential apartment complexes for the term of the lease. Control of the apartment complexes would then revert to the City at the conclusion of the lease term.

To facilitate the development, the City is providing debt finance to the Proponent in the amount of $56 million to fund construction of the residential complexes. This debt will be repaid with interest over the lease term.

As detailed in the Business Plan, it is anticipated that Council will incur a net funding cost of $9.1m over the 20-year lease term, while inheriting an asset with a forecast book value of $46.6m, providing a forecast net return of $37.5m to ratepayers in addition to the benefit of 116 residential dwellings.

30 Nairn Street, Bulgarra	Lot 751 Gregory Way, Bulgarra	17 Ridley Street, Bulgarra
5,501 sqm	9,545 sqm	5,105 sqm
48 apartments: · 15 x 1-brm/1-bth · 27 x 2-brm/2-bth · 6 x 3-brm/2-bth	36 apartments: · 12 x 1-brm/1-bth · 18 x 2-brm/2-bth · 6 x 3-brm/2-bth	32 apartments: · 8 x 1-brm/1-bth · 20 x 2-brm/2-bth · 4 x 3-brm/2-bth

The Development Agreement with the proponent is expected to be executed by the end of Q1 2025/26 which will enable construction to commence. Construction will involve off-site fabrication of apartment modules which will then be transported to site and installed, along with local civil works, service connections and landscaping.

The developer anticipates delivery of the first modules in early-2026, with completion of the full development expected by October 2026.

The public consultation period for the business plan has now closed, however any informal feedback or queries regarding the project can be directed to enquiries@karratha.wa.gov.au.

Your input is crucial in ensuring that the proposed development meets the needs of our community. By participating in this consultation process, you help shape the future of housing in Karratha.