The Australian government is set to offload 67 defence properties nationwide, including two significant sites in Perth: the Irwin and Leeuwin Barracks. As the state confronts an ongoing housing crisis, the sale of these prime locations offers a potential solution. However, questions remain about the real impact of this sell-off on the housing market and the allocation of funds generated from the sale.
Details of the Sale
Irwin Barracks in Karrakatta, the larger of the two sites, spans 61.5 hectares and currently hosts Western Australia’s main Army Reserve base. This base will be relocated to Palmer Barracks in South Guildford, freeing up land that could accommodate thousands of residents. Meanwhile, Leeuwin Barracks in East Fremantle, a 14-hectare site along the Swan River, presents another lucrative opportunity, potentially housing several hundred people. Both sites were deemed surplus to the Australian Defence Force’s (ADF) requirements following an audit.
Prospects for Housing Development
The Department of Finance has opened expressions of interest for the land, but Defence Minister Richard Marles and Finance Minister Katy Gallagher have tempered expectations regarding its use for housing. “It may be that some sites are suitable for housing,” Gallagher noted, signaling a cautious approach.
The property industry, however, is optimistic. Nicola Brischetto, Executive Director of the Property Council WA, anticipates strong interest from the private sector due to the sites’ strategic locations and proximity to public transport. Deputy Premier Rita Saffioti echoed this sentiment, describing the sites as “incredible pieces of real estate” and highlighting the need for comprehensive planning, including potential educational facilities.
Timeline and Challenges
Assistant Defence Minister Peter Khalil expects the majority of the sites to be sold within two years. Yet, property analyst Gavin Hegney cautions that these are “decade-long projects” and urges the state government to expedite planning approvals and infrastructure assessments to avoid prolonged delays. He also suggests that developers could be required to allocate a portion of the housing for social or affordable purposes, given the high property values in the surrounding suburbs.
“We can actually have a whole range of housing on these sites because they are both blank canvases,”
Hegney stated, emphasizing the potential diversity in housing solutions.
Financial Implications and Future Investments
The sale of these properties is projected to generate approximately $3 billion, with $1.2 billion earmarked for site preparation and upgrades to other bases. This leaves around $1.8 billion for necessary defence infrastructure and equipment. The government has already outlined plans for an $8 billion expansion of the HMAS Stirling naval base to support the AUKUS submarine program and bolster bases along Australia’s northern coastline.
Matt Niikkula, Exmouth Shire president and chair of the North West Defence Alliance, expressed enthusiasm for the announcement, particularly given the strategic importance of the north-west coastline amid rising tensions in the Indo-Pacific region. “Investment into existing infrastructure, new infrastructure, assets and more defence personnel within the region will be greatly welcomed,” he remarked.
Strategic Defence Goals
Despite the infrastructure investments, defence leaders have clarified that there are no immediate plans to significantly increase personnel numbers in the region. Instead, the focus is on enhancing the capability for rapid troop deployment. Dr. Troy Lee-Brown from the UWA Defence and Security Institute highlighted the emphasis on improving runways, facilities, and fuel storage, as well as the mobility of missile defences.
“A lot of the work will be going to improving runways, facilities, fuel storage, but also hardening the bases … having the ability to move missile defences around and those sort of things,”
Dr. Lee-Brown explained.
As the sale progresses, the potential transformation of these sites into residential areas remains a focal point for both the government and the community. The developments will be closely watched as they unfold, with significant implications for Perth’s housing market and Australia’s defence strategy.
