By Brett White, Licensee – RE/MAX Extreme
As Perth’s population keeps climbing and housing demand continues to rise, it’s becoming increasingly clear that our city needs a new approach to how and where we grow. With land supply shrinking and development pushing further into the outer suburbs, the conversation around urban infill has never been more important—especially here in Perth’s northern corridor where many families, investors, and downsizers are looking for well-connected, quality homes.
Land is Running Out Sooner Than You Think
According to recent land use data, nearly 80% of the land across Perth, Peel, and Greater Bunbury that’s been earmarked for residential development has already been built on. At our current pace, we’re looking at just over two decades before that supply runs out entirely. And in some parts of Perth—especially in the northeast and southwest—the situation is more pressing, with zoned land expected to be exhausted in just 4–6 years.
In contrast, areas like the southeastern corridor have a bit more breathing room, with estimates suggesting up to 13 years of supply. But regardless of which part of the metro area you’re in, the reality is the same: if we don’t start planning smarter and faster, we’re going to hit a wall.
Infill is the Key to Sustainable Growth
Infill development—creating new housing within existing suburbs—is a practical solution that can extend land supply by decades. If the State Government meets its density targets, experts say we could stretch our supply by as much as 60 more years. That’s a significant gain, but it hinges on one thing: our ability to overcome the roadblocks currently holding infill back.
At RE/MAX Extreme, we’ve seen first-hand how successful infill projects can revitalise established communities. Suburbs like Joondalup, Currambine, and Ocean Reef have shown strong demand for properties in walkable, amenity-rich areas—something infill directly supports.
Urban Sprawl is Costing WA Billions
There’s a real cost to allowing Perth to sprawl endlessly up and down the coast. Our city already stretches more than 150km from north to south—making us the most stretched-out city in the country. And that comes with a price tag. Urban sprawl is estimated to cost WA over $2.5 billion a year, largely due to the increased burden on infrastructure like roads, power, water, and transport.
By prioritising infill, the WA Government could save as much as $94.5 million for every 1,000 lots built in underused urban areas instead of starting from scratch on new land. If Perth adopted a 60% infill rate, those savings could reach $23 billion by 2050. That’s money that could be reinvested into better schools, hospitals, and services.
Why Aren’t We Meeting Our Infill Goals?
Despite these compelling benefits, Perth continues to miss its own targets. Under the Perth and Peel @3.5million strategy, the goal is for 47% of all new dwellings to be delivered through infill. But we’re falling short—sitting around 34% in 2023, up only slightly from the year before.
Of the dwellings that are being built, most are single homes. Larger-scale infill projects—those with more than 50 homes—make up just 7% of infill activity. This low number highlights the difficulty in getting medium- and high-density developments off the ground in suburban areas.
Developers Need More Support
The infill challenge isn’t due to a lack of ideas or demand—it’s about execution. Rising construction costs, complex approvals processes, and inconsistent planning rules are making it harder for developers to justify the risk of infill projects. Without clear guidance, timely approvals, and targeted incentives, many developers simply walk away.
Community attitudes also play a role. Resistance to change—commonly known as the “Not In My Backyard” or NIMBY mindset—slows or blocks developments that could otherwise benefit local areas. In some suburbs, this resistance has led to minimal housing growth, despite high demand.
To move forward, we need to tackle these challenges with a mix of policy reform and public education. We need to show residents the benefits of well-designed infill and make the planning process easier and more predictable for those looking to invest in it.
What’s Next?
There are some positive steps on the horizon. The WA Government recently committed to reviewing the Residential Design Codes to streamline approvals for medium-density developments. That’s a welcome move—but more action is needed.
We need faster approval times, consistent planning guidelines, and investment in existing infrastructure to make infill feasible and attractive. Supporting developers and encouraging innovation in urban design will help Perth grow sustainably—without pushing further and further into untouched land.
Final Thoughts
As someone who has worked in real estate across Perth’s northern suburbs for many years, I’ve seen how the right kind of development can breathe new life into a neighbourhood. Infill isn’t just about squeezing more homes into a block—it’s about creating vibrant, well-connected communities that people want to live in.
To meet the needs of the future, we can’t keep doing things the old way. We need to prioritise smart growth over endless expansion, and we need to do it now—not ten years from now.
If you’d like to know how infill development or rezoning could affect your local area—or your own property—feel free to reach out to our team. We’re always happy to chat about what’s happening in the market and how to navigate the changes ahead.
Source: Australian Property Investor