Dunsborough development a balancing act

Preserving its distinctive, village feel while catering to a swell of developer and tourism interest presents both opportunities and challenges for one of Western Australia’s most popular beachside towns.

Three hours’ drive south from Perth, Dunsborough has mostly flown under the development radar, often overshadowed by other South West holiday hotspots such as Busselton and Margaret River.

But the tide is turning, with several property proposals that could boost Dunsborough’s appeal as a holiday destination and a place to live.

That includes plans for a microbrewery and short-stay accommodation on the corner of Cape Naturaliste Road and Dunn Bay Road, and the arrival of another full-line supermarket, with Woolworths to set up shop opposite an existing Coles.

In trying to pinpoint the catalyst, City of Busselton chief executive Mike Archer said a combination of factors had put the spotlight on Dunsborough.

The town falls within the City of Busselton’s remit and Mr Archer said there had been more development enquiries for Dunsborough than the rest of its district combined.

“What we’re seeing is one of the first communities outside of Perth and Mandurah on a coastal area getting some significant development,” Mr Archer told Business News.

“It’s an attractive place to live and it’s one of those places people want to move to.

“It’s got lots of trees, surf beaches, swimming beaches, it’s got a really good feel, close to all the wineries … and amenities [like] good education and medical facilities.

“The other thing is connectivity to the world; there’s been improvements in technology … and what we’ve learned out of COVID with working remotely means you don’t have to necessarily live in the capital city.”

Increased connectivity via Busselton’s new airport, which will service the eastern states, was another likely drawcard, he said, as was housing affordability, relative to beachfront residences in Perth.

Mr Archer said this would add to the pre-COVID trend of an increasing settlement of fly in, fly out workers in the region, which is home to Rio Tinto’s second largest hub of workers outside of the metropolitan area.

Planning changes had also likely piqued developer interest, he said, although there had been a lag in proposals being submitted.

Dunsborough's town centre. Photo Atisha Turnock

In 2016, council endorsed a planning scheme amendment that changed the zoning of Busselton and Dunsborough’s town centres from ‘business zone’ to ‘RAC-3’, enabling for mixed-use developments of up to six storeys.

While a six-storey development has yet to break ground in Dunsborough, two applications of between four and five storeys have been proposed.

“The challenge is to ensure development applications … meet with that character and feel,” Mr Archer said.

The Dunsborough Precinct Structure Plan, also known as an activity centre plan, could better outline what that ideal ‘character and feel’ should look like.

Until recently, activity centre plans – planning documents that aim to provide a holistic ‘vision’ for a town centre, considering elements like future traffic impacts, parking, integration of public open green spaces and pedestrian amenity – typically have been only produced for metropolitan areas.

Architectural style and built-form outcomes are also considered in activity centre plans.

A City of Busselton planning spokesperson told Business News the precinct structure plan had been in the works for some time, following recognition of the development potential of several vacant land parcels in Dunsborough’s town centre.

Council hopes the plan will provide a middle ground between the aspirations of locals and accommodating growth, with a draft anticipated to be released for public comment later this year.

Place Development Australia director Rob Bates-Smith said engaging community groups and local businesses directly during the early planning process – as early as the design stage – had proven to be a successful interim strategy, particularly for his work on 61 Dunn Bay Road.

“Dunsborough has a very positive outlook; it’s sitting in a high growth region, and it’s got world-class assets on its doorstep,” he said.

“There’s been a lot of exploratory work on those [vacant] parcels … there have been [development] attempts, it hasn’t been dormant.

“I’d say it’s a combination of timing in terms of project feasibility and response from the community.

“There are a number of developments coming out of the woods now.”

Developments

It has been almost 20 years since Dunsborough’s town centre has had any large-scale development, following the completion of Dunsborough Centrepoint in the early 2000s.

Anchored by Coles, Dunsborough Centrepoint could soon face increased competition from a $12 million application to construct a two-storey shopping centre featuring a 3,210-square-metre Woolworths, four special retail tenancies, a restaurant and five apartments on the top level.

Planned for 50-52 Dunn Bay Road, the project comprises land that has been vacant for more than 20 years, as well as the Dunsborough Central Motel, Dunsborough Inn Backpackers, associated car parking, gardens, and pool, which will be demolished if the application receives the green light.

Filling that gap for central holiday accommodation is a proposal for 18 chalets and two short-stay apartments, along with microbrewery, coffee roastery, retail tenancies and alfresco area at 61 Dunn Bay Road, currently home to Japanese fusion cafe Peko Peko.

Developer Peter Atzemis said COVID-19 had strengthened regional tourism, adding to an already compelling case to develop accommodation in the town’s centre.

“Our family has been holidaying in Dunsborough for decades and it’s clear that the town has come of age and become a lot less seasonal, with the previous peaks and troughs evening out to a very consistent flow of intrastate visitors alongside those from further afield,” Mr Atzemis told Business News.

Mr Atzemis said while aspects of the project (such as the brewery and accommodation) existed individually throughout the region, they weren’t accessible without transportation between venues.

That lack of a centrally located holistic offering drove the impetus for the project, which will cost about $7 million to construct and has a development value of $16 million.

The proposed plans for 61 Dunn Bay Road. Image: FINESPUN Architecture 

Mr Atzemis said in recognising the prominence of the site as an entrance statement to the town centre, the team decided against introducing any high-rise structures, despite the site allowing for up to six storeys, with the project reaching two levels at its highest point.

“Early engagement with the local community certified this approach and the support for a low-lying, localised destination has been overwhelming,” he said.

“There will certainly be pressure around density for the area to service the projected population growth.

“With this comes discussions of height, bulk and scale, which we are aware is already proving to be a point of discussion between the city and local community.”

Business News understands there are plans for a multi-storey development next to the Atzemis site, which are yet to progress through the planning process.

That parcel was the centre of contention several years ago when a proposal for a Puma Petrol Station escalated to the Supreme Court and faced fierce opposition from local advocacy group Puma2go.

Elsewhere, a proposal for holiday accommodation just out of town, at lot 200 Caves Road, has also gone back to the drawing board.

The concept plans for chalets at lot 200 Caves Road.

Planning group Urbis is managing the planning process and a spokesperson told Business News a revised application had been lodged this month, which involved improved sustainability outcomes.

In 2019, a five-storey building on 24 Dunn Bay Road was approved, however, proponents involved in that project told Business News new plans could surface later this year.

Another project of height closer to breaking ground is A&R Development’s four-storey, 28-apartment project along Geographe Bay Road. Designed by DMG Architecture, the project is valued at $35 million and is estimated to cost $12 million to construct.

The Geographe Road apartment project. Image: DMG Architects

An A&R spokesperson told Business News reducing the need to remove bushland and containing the town’s urban sprawl had influenced the concept for apartments.

“Inner-city density is definitely proven to be better on the environment,” they said.

“The location was rezoned a few years ago for higher density and we thought that this location definitely needs more diversity in living accommodation; after all, not everyone wants to live in a four by two on 1,000 square metres.”

The spokesperson said 90 per cent of the apartments had so far been sold to locals but noted there had been some opposition from other residents.

“We are always happy to meet and discuss anyone’s concern because we want a building that everyone is happy with,” they said.

Demolition of the existing shacks on site has begun, targeting a 2022 Christmas completion date.

However, potential delays could emerge, with a group of residents seeking to challenge the development’s planning approval in the Supreme Court.

Additionally, local community action group the Dunsborough Progress Association (DPA) has been lobbying to reduce building height limits along Geographe Bay Road, culminating in a petition it said received more than 700 signatures.

The City of Busselton is now considering a scheme amendment to change residential zoning from R80 to R60 across 26-50 Geographe Bay Road – reducing building height guidelines to up to three storeys – with public submissions closing August 13.

Growing pains

DPA spokesperson Tony Sharp said there was an acceptance among the community that growth was inevitable; the challenge was determining at what cost.

“Not all developments are bad, and the progress association isn’t against all developments,” he said.

“The longer-term issue is the overall growth of the area and how much growth.

“There’s something about Dunsborough that’s attractive, that’s why people have moved here, [but] that can’t survive if you’re going to double the population.

“And there’s a strong feeling that Dunsborough would like as much as possible to retain its own character and not just become a Perth suburb.”

JMW Real Estate principal Joe White said there had been a surge in residential property interest over the past year, with little titled land available and the town’s largest housing estate, Dunsborough Lakes, nearly sold out.

That interest prompted the Western Australian Planning Commission in 2020 to launch an investigation into land for Dunsborough’s immediate urban growth, including more than 400 hectares along Commonage Road, behind Simmo’s Ice Creamery.

“At the moment our biggest challenge is we physically cannot find enough stock to satisfy demand,” Mr White told Business News.

“It’s like technology made it a possibility to work remotely, but COVID gave the impetus to do it.”

Mr White pointed to some of the town’s latest commercial tenants as proof, which included a national shipping logistics firm and publicly listed company Desert Metals.

“When you see a public company taking a small site in Dunsborough so their directors can work from down here, that is signalling a very big demographic change in what’s happening,” he said.

The latest population forecasts also paint a picture of rapid growth.

Local authorities estimate about 9,000 people reside in the Dunsborough area, nearly double the 5,320 people recorded in the last census (2016).

Mr White said if development was constrained, the town could face a real affordability crisis.

According to the Real Estate Institute of Western Australia, house prices in the area have jumped about 10.7 per cent annually.

Besides house and land stock, Mr White said Dunsborough needed more urban infill for the buyers’ and renters’ markets.

He hopes the activity centre plan will help provide the overarching strategy that’s needed for more responsive medium density.

Future infill development sites include a parcel next door to A&R Developments’ proposal: JMW Real Estate is marketing the 809 sqm property at 30 Geographe Bay Road, which is zoned for mixed-use development.

“I can’t see the shift to the regions declining,” Mr White said.

“The challenge is going to be dealing with it in such a way that we don’t screw it all up.”

To avoid that, Jacquie Happ, who has lived in the region for more than 20 years, hopes developers will carefully consider how they will contribute to the town: keeping it unique, while providing density living to feed a night-time economy without changing the feel of the town.

Ms Happ pointed to recent civic projects that had boosted Dunsborough’s vibrancy: the redevelopment of the old Telstra block and Hannay Lane into shared zones; the Djiljit Mia nature space; and public artworks.

“These have been stimulated by the festival and events that bring the community together [like] the Hannay Lane Street Party and Dunsborough Arts Festival,” Ms Happ said.

“They continue to build the spirit of community, the heart that people can’t identify until they feel it when people come together. In the end, this is what makes a place special to live, breathe and play on. This is often why people move here.

“I hope this heart feeling is what a new local will remember when they are developing their properties.”