The WA Planning Commission has refused a proposal for a new Bunnings store in Capel, 10km from an existing site in Bunbury, due to concerns that it would undermine the regional centre's viability and take up land intended for housing. The application was fiercely contested by Bunbury businesses and residents who argued that the move would lead to a five percent reduction in turnover for local retailers. The Commission found that the proposal represented a significant departure from the local structure plan, which identified the land for residential development. A new Bunnings store had been proposed for a site with 100 shovel-ready lots, which critics argued was crucial for addressing housing supply issues in the region.
Written by the local model on 2026-08-19,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
The West Australian WA Planning Commission has rejected Bunnings' proposal to build a new store in Capel, 10km from an existing store in Bunbury. The commission's decision comes after a heated campaign by Bunbury business and political leaders, who argued that the new store would undermine the city's status as a major regional centre and affect housing supply. They claimed it would also take up land intended for residential development, which is planned for the Dalyellup area. Bunnings had applied to vacate its current site in Bunbury and shift to Dalyellup, but the commission ruled that a big-box retail development was not the "highest and best use" of the Dalyellup block. The decision represents a significant departure from the local structure plan, which prioritizes residential development in the area. The Bunnings proposal had been met with strong opposition from Bunbury's business community, who feared it would have negative consequences for their city.
Written for “Bunnings Store Rejection” on 2026-08-31,
grounded in this article and the 0 other(s) covering the same event.
Why this leaning score
The article's own words the score was based on. Each is quoted
verbatim and was checked against the article text before being
stored, so you can find it in the original.
-
undermine the viability of the regional centre
left favouring local businesses over a big-box retail development
-
take up land intended for housing
left emphasizing housing concerns over commercial development
-
clear departure from the existing structure plan
left supporting planning regulations and zoning laws
Leaning score -0.65 for article 1256 (medium confidence, 3 verified quotes) · logged 2026-08-24
In short:
Bunnings' plan for a new store in Capel, 10km from an existing store, has been refused by the WA Planning Commission.
asserted
plan → exist → Commission
Bunbury businesses argue the move would have undermined the city's status as a major regional centre and affected housing supply.
asserted
move → argue → supply
The WA Planning Commission said the application represented a significant departure from the local structure plan.
asserted
application → say → plan
Planning authorities have rejected a fiercely contested multimillion-dollar Bunnings development 10km from its existing site in the West Australian regional city of Bunbury.
asserted
authorities → reject → Bunbury
A public outcry erupted over the hardware giant's plans to vacate its site at a retail centre in Bunbury, south of Perth, and shift to the town centre of Dalyellup, 10 kilometres away in the neighbouring Shire of Capel.
asserted
outcry → erupt → Capel
Bunbury's business and political leaders united in a heated campaign against the new store, arguing it would undermine the viability of the regional centre, and take up land intended for housing.
asserted
it → unite → housing
After considering the matter for more than four hours, the WA Planning Commission on Wednesday said the Dalyellup block had been identified for residential development and it was not satisfied a big-box retail development represented the "highest and best use" of the land.
asserted
development → consider → land
Bunnings property and store development manager Garry James said he was disappointed by the decision.
asserted
he → say → decision
"We will take some time to review the outcome and consider our next steps," he said.
asserted
he → take → steps
A tough decision
Bunnings' current Bunbury landlord, Citygate, told WA planning officials the move would have cost local retailers in lost sales.
asserted
move → tell → sales
Bunnings representatives contested the claim, citing its own projections of a five per cent reduction in turnover for the Bunbury commercial precinct, which it said would be short-term, and affect only larger retailers.
uncertain
it → contest → retailers
The WA Planning Commission said the proposal was a clear departure from the existing structure plan, in which the land was identified for residential development.
asserted
land → say → development
Members stressed that this did not mean the land could not be rezoned commercial, but they could not approve the development in its current form.
uncertain
they → stress → form
WA Planning Commission chairperson Emma Cole described it as a challenging application, which was "line ball.
asserted
which → describe → application
"There have been many valid points raised along the way, and it's certainly been one of the more challenging applications," she said.
asserted
she → raise → applications
Several deputations were read out to planning officials, raising concerns about the use of land that could otherwise be used for housing.
Among the critics was Anglicare regional manager Lisa Whittaker.
"It removes crucial residential housing land at a time when people are experiencing housing stress, housing instability and homelessness," she said.
uncertain
she → read → stress
Property developer Justin Trewren from Summit Homes said there was a critical land shortage in the South West.
asserted
Trewren → say → West
"This removes more than 100 residential shovel-ready lots from the market in the middle of a housing crisis,"he said.
asserted
This → remove → crisis,"he
But Bunnings and the Shire of Capel strongly rejected claims of harm to housing supply.
uncertain
Bunnings → reject → supply
Bunnings planning consultant Daniel Lewis said knocking back the proposal would not result in more housing.
asserted
knocking → say → housing
"[We have] a strong view it was not suitable for housing — the land owner never intended to use it for housing.
asserted
owner → have → housing
It would have been a church," he said.
asserted
he → say → ?