Bulgarra Apartment Development

The Bulgarra Apartments is a $56mil development comprising 116 apartments being constructed on 3 sites in Bulgarra: 

• 30 Nairn Street;
• 17 Ridley Street; and 
• Lot 751 Gregory Way

The project is being built by Karratha Developments (a consortium led by Developed Projects) and will be operated by the developer. The City is playing a role in the development by providing discounted access to land and finance while still providing a positive return to ratepayers.

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.

Difficult market conditions have meant that private residential development has not kept up with demand. Through the Housing Development EOI the City is proposing to partner with private developers through the provision of discounted access to land and discount finance in order to stimulate residential housing development.

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.

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.

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;
• create employment opportunities
• generate a financial return to the City; and
• indirectly spur additional housing building

The development proposes to utilise modular construction methods to deliver modern, high-quality apartments in a range of one-bedroom, two-bedroom and three-bedroom configurations. Each complex is proposed to have a range of communal facilities including a swimming pool, gym, al fresco dining area and visitor parking as well as undercover parking and individual storage units for each apartment.

The project construction works are planned to take place in the 2025-26 and 2026-27 financial years and funding for the project will be included in the City’s Annual Budget.

The City is proposing to obtain commercial finance in order to on-lend to the developer. Based on current market conditions, it is forecast that the rate the City can borrow at will be higher than the rate charged to the developer, as such there will be a funding gap over the loan term.

The City currently has healthy financial reserves with which to undertake this development. The forecast funding gap of $9.1mil over 20 years is proposed to be funded from the City’s Infrastructure Reserve. None of the money in the Infrastructure Reserve comes from residential, commercial or industrial rates.

At the conclusion of the lease period, the City has a number of options to continue to operate or divest the apartments. Any proceeds from ongoing operation or divestment will be returned to the Infrastructure Reserve.

No.

The development is being constructed and operated by a private developer; it is expected that the apartments will be available on the private rental market.

The developer will engage a local property manager to manage the leasing of the completed apartments. The developer is also expected to engage a local maintenance contractor.

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
• Proposed $23.4m Baynton residential development
• Awarded a $22.1m Federal grant for subdivision works at Mulataga