The City of Karratha is undertaking a new housing development in Baynton West. This initiative aims to address the critical housing shortage in our community by providing a mix of affordable, government, and private housing options.
Background
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.
- Following Council’s decision at the Ordinary Council Meeting on 30 June 2025 to proceed with the project, the City is currently finalising the Development Agreement with the proponent, Acero Construction Pty Ltd, for the delivery of the completed development. To view the Minutes from the OCM on 30 June 2025, click here.
Proposal Details
- Location: Lot 481 Bajamalu Drive, Baynton
- Land Size: 8,404 sqm
- Development Cost: $26.2 million
- Dwelling Yield: 37 dwellings (17 townhouses, 20 apartments)
- Usage: Staff housing, key worker housing, affordable housing, private market rentals
Project Delivery Update
15/17 townhouses have now been delivered to site and installed. Carport and verge works have commenced on Jadura Crescent and will continue before moving to internal road carports. Apartments have commenced fabrication in Perth and will continue over the coming months.
How to Provide Feedback
The public consultation period for the business plan has now closed, however any informal feedback or queries regarding the project can be directed to Acero Constructions Pty Ltd at framing@actionsolution.com.au or to the City of Karratha at enquiries@karratha.wa.gov.au.
Documents
Housing Development EOI Business Plan
(3.28 MB)
Bajamalu Site Plan
(1.78 MB)
Timeline
Construction Commences
October 2025
First Townhouses Delivered
April 2026
Second Townhouses Delivered
June 2026
First Apartments Delivered
November 2026
Second Apartments Delivered
January 2027
Landscaping and Practical Completion
March 2027
FAQ
What is the project?
The Baynton development is a $26.2m grouped residential complex comprising 17 townhouses and 20 apartments (in 2 low-rise apartment buildings) at Lot 481 Bajamalu Drive in Baynton. The project is being built by Acero Construction and will be owned and operated by the City.
Why is the City involved?
With several large industrial projects currently approved or under construction, the City’s modelling indicates Karratha will require an additional 2,000 residential dwellings in the next 5 years. Current development approval volumes suggest supply will be well behind this demand. Having experienced previous booms, our Council asked what the City can do to support the development of additional housing stock. The market has responded via our Housing Development EOI with options, one of which is now ready for public consult.
The Council’s interest in housing is echoed by the community. Housing has been identified through the City’s Annual Community Survey as the number 1 issue for residents and failure to supply the additional dwellings required will exacerbate the existing housing crisis.
While local government housing investment is typically aimed at housing staff, to achieve our vision to become Australia’s most liveable regional City, the City has taken a proactive approach to addressing the housing shortfall for other key workers.
This proposal has clear linkages to the City of Karratha’s approved Council Plan 2025-2035 and the City has been working proactively to assist with solving this issue alongside regularly advocating with State and Federal Governments, industry groups, real estate agents and other key stakeholders.
What are the benefits?
The project has the potential to:
- progress the City’s vision to become Australia’s most liveable regional City;
- increase residential housing to the market;
- provide critical affordable housing for key workers;
- create employment opportunities;
- and generate a financial return to the City;
- indirectly spur additional housing construction
What are the risks?
Investing in a property development carries risk. A risk analysis has been completed and mitigation strategies for all identified risks have been listed in the business plan.
What are the residential facilities?
Part of the development comprises 17 townhouses, a combination of 3x2 and 4x2, that will either front Jadura Crescent or the internal access road within the development. The townhouses each have a double carport (with some having an additional 3rd vehicle space), a storage room and a small rear courtyard. They will be similar to many of the cottage lot dwellings in the surrounding area.
The remainder of the development comprises 20 apartments, a combination of 1x1 and 2x2, in two separate 2-storey buildings. One building will front Bajamalu Drive and the other will front the internal access road within the development. The apartments all have either an external courtyard or balcony with allocated parking available within the development and an external storage building. They will be similar in amenity to a number of other low-rise apartment complexes that exist across the City.
How will the project be funded?
The project construction works are planned to take place in the 2025-26and 2026-27 financial years and funding for the project will be included in the City’s Annual Budget.
The City has sought a capital grant from the State Government to fund this project as it addresses a critical housing shortage in our region, noting that State Funding would also enable the City to leverage project returns into other housing developments to increase supply.
In the event that the State Government does not provide a full capital grant, the City currently has healthy financial reserves which can fund the balance of the development cost, in particular the Infrastructure Reserve. None of the money in the Infrastructure Reserve comes from residential, commercial or industrial rates.
Will the project increase my rates?
No.
Who has access to housing?
There are a number of options available for utilisation of the completed development which include Staff housing, key worker housing, affordable housing and private market rentals.
How will these be managed?
The City would manage the leasing of any dwellings allocated for Staff housing or key worker affordable housing in line with existing processes. Should any dwellings be leased on the private rental market, the City would engage the services of a residential property manager in accordance with standard procurement policies.
Why isn’t the State Government or Private Sector doing this?
The City is actively advocating to the State Government, private sector and other key stakeholders to do what they can in regard to housing. While not considered a traditional Local Government issue, the City is determined to do its part and has previously, completing a number of housing-related initiatives, including:
- A nine dwelling development partnership with GBSC Yurra in Nickol
- A 20 lot subdivision on Hancock Way in Bulgarra
- Construction of two dwellings in Nickol West
- $2.6m towards land acquisition in 2021/22
- Awarded a $22.1m Federal grant for subdivision works at Mulataga