Why Perth’s Richest Suburb Is Planning to Grow
Perth’s richest suburb is about to look very different. The Shire of Peppermint Grove, home to some of the state’s wealthiest residents, has unveiled a draft local planning strategy that would more than double its number of homes over the next 10 to 15 years.
The plan proposes 1,242 dwellings at a 70 per cent take-up rate, up from the 617 homes that exist today. In other words, the shire is planning for around 200 per cent of its current housing stock.
For a council that has long been known as the “garden shire”, that is a significant shift. It also tells us something important about where Perth’s housing policy is heading. Even the richest postcode in the state is not exempt from infill density.
This article unpacks what the draft strategy proposes, why it is happening, and what it could mean for owners, buyers and sellers across Perth’s western suburbs.
Peppermint Grove at a Glance: The Richest Council by the Numbers
Peppermint Grove is the smallest local government in Australia by area, covering just 1.06 square kilometres. It has 1,597 residents and a leafy, riverside character that has made it one of the most sought-after addresses in the country.
That compact footprint, packed with the richest residents in the state, is exactly why the proposed increase is so striking. There is very little land to work with, so every decision about where density goes carries real weight.
| Key fact | Detail |
|---|---|
| Local government area | Shire of Peppermint Grove |
| Land area | 1.06 sqkm (Australia’s smallest council by area) |
| Residents | 1,597 |
| Current dwellings | 617 |
| Proposed dwellings (draft strategy) | 1,242 at a 70% take-up rate |
| Timeframe | 10 to 15 years |
| Nickname | The “garden shire” |
What the Draft Local Planning Strategy Proposes
The richest shire’s draft local planning strategy sets out how and where new homes could be delivered. It is a long-term planning document, not a development approval, and it is still some way from becoming final.
Even so, the direction is clear for Perth’s richest council. Council wants to concentrate new housing in specific parts of the suburb while protecting the area that defines its character.
Three options for infill
The richest shire’s strategy put forward three options for infill housing. At its August meeting, council approved the option that would limit development to the east of the suburb.
That choice matters. It means the richest and most established part of the shire, close to the foreshore, is being deliberately held back from change.
The eastern development zone
Under the preferred option, the mostly R10, R12.5 and R20 low-density properties east of the View Street laneway would make way for R30 and R40 zoning. That would allow development of up to three storeys.
The heights increase sharply along the main road corridors:
| Location | Proposed density or height |
|---|---|
| East of the View Street laneway | R30 and R40, up to three storeys |
| Between Irvine and Keane streets | R60, four storeys or more |
| Along Stirling Highway | Six or more storeys |
| Cottesloe Central and nearby commercial sites to the south | Up to 16 storeys |
The protected “heart” of the garden shire
The plan also creates a special control area. It stretches from the laneway west of View Street to the Freshwater Bay foreshore.
Within that area, the existing R10 and R12.5 zoning would stay in place. So would the current minimum lot sizes, street setbacks and plot ratios.
According to the shire’s report, the aim is to “secure and conserve the core heart of the garden shire”. In practice, that means the richest and most valuable and most exclusive streets keep their large blocks and low-rise feel.
A density transition area
Between the protected core and the busy Stirling Highway corridor, the strategy proposes a density transition area. The idea is to step heights down gradually, rather than placing a high-rise directly beside a heritage-style streetscape.
The report says the approach would retain the suburb’s high residential amenity, history and tree canopy. At the same time, it would intensify mixed-use development along Stirling Highway and the Cottesloe district centre.
Why Is This Happening in the Richest Part of Perth?
There are three main drivers behind the draft strategy. None of them are unique to Peppermint Grove, which is why the story is relevant to property owners across Perth.
State Government planning reforms
The State Government has introduced reforms to increase housing within 800 metres of train stations. In this part of the western suburbs, that includes Cottesloe and Mosman Park stations.
The reforms also create a base residential density code of R30. That is a major change for suburbs that have long been zoned at R10 or R20.
An overdue strategy
The shire’s 2016 local planning strategy is overdue for review. A refreshed strategy for the richest shire was always going to be needed, and the State Government changes have simply shaped what it must contain.
A missed housing target
A report by shire staff said a previous infill target of 480 dwellings, set in 2018, was unlikely to be achieved under the current local planning policy. The report concluded that the shire’s “housing effort needs to increase”.
| Target | Dwellings | Status |
|---|---|---|
| 2018 infill target | 480 | Unlikely to be met under current policy |
| Current dwellings | 617 | Existing stock |
| Draft strategy | 1,242 | Proposed over 10 to 15 years |
What Do R-Codes Actually Mean?
If you are not familiar with residential density codes, the numbers can look like jargon. They are an important part of this story, so a quick explanation helps.
R-codes, or residential design codes, control how many homes can be built on a given area of land. As a broad guide, a higher number means more dwellings per hectare and smaller average lot sizes.
| Density code | What it generally means |
|---|---|
| R10 to R12.5 | Very low density, large blocks and detached homes |
| R20 | Low density, typical suburban lots |
| R30 | Medium density, smaller lots, duplexes and townhouses possible |
| R40 | Higher medium density, often townhouses and low-rise apartments |
| R60 | Higher density, apartments of four storeys or more become viable |
For Peppermint Grove, moving from R10 or R20 to R30 and R40 is a big step. It changes what a landowner can build, and it changes what a buyer is willing to pay.
What the Market Data Says About Perth’s Richest Suburb
Peppermint Grove is already at the top of the Perth price ladder as the richest and most expensive suburb in the market. According to REIWA, the suburb retained its position as Perth’s most expensive suburb, with a median house sale price of $6,575,000 at the end of 2025-26.
The suburb recorded median house sale price growth of 68.2 per cent over the year. REIWA noted that Peppermint Grove is the first Perth suburb in its records to record a median house price above $6 million.
| Peppermint Grove (REIWA, year to June 2026) | Figure |
|---|---|
| Median house sale price | $6,575,000 |
| Annual median price growth | 68.2% |
| Perth ranking | Most expensive suburb |
| Milestone | First Perth suburb above $6 million |
Read the headline number carefully
It is worth treating that growth figure with caution. REIWA members said that recent sales in Peppermint Grove have been of large landholdings, which contributed to the suburb recording a median above $6 million.
REIWA also made a broader point that every owner should keep in mind. A big jump in a suburb’s median price does not guarantee your own home will rise by the same amount.
A wider club beyond the richest suburb
Peppermint Grove is not alone at the top. REIWA reported a record 31 Perth suburbs with a median house sale price of $2 million or more in the year to June 2026.
Ten suburbs exceeded $2 million for the first time since the end of 2025. That shows how much price pressure has built across Perth’s premium markets, not just in the richest pocket of the western suburbs.
What It Could Mean for Owners in the Richest Suburb
The draft strategy is not yet in force, so nothing changes for landowners today. Still, the direction of travel is useful to understand, especially if you own in or near the affected areas.
Owners east of the View Street laneway
Owners in the proposed R30 and R40 area could see their land become more flexible. A larger block that was once limited to a single dwelling may eventually be able to support more homes.
That can increase the potential value of the land itself. However, the final rules, timing and development standards are still to be settled.
Owners along Stirling Highway
For properties along Stirling Highway, the proposal of six or more storeys is the most significant. Sites in this corridor may become attractive to developers looking at mixed-use or apartment projects.
Owners here should keep a close eye on how the strategy evolves through consultation. Height and density rules can change between a draft and a final document.
Owners in the protected core
Owners within the special control area are in a different position. Their zoning, lot sizes, setbacks and plot ratios would stay as they are.
For some, that scarcity is the whole point. The richest streets of the shire would remain low-density, which may help protect the exclusivity that buyers pay a premium for.
What It Could Mean for Buyers in the Richest Suburb
For buyers eyeing the richest streets, the strategy opens up a few possibilities. It could also introduce some new questions that did not exist in a suburb frozen at low density.
More choice over time
An increase from 617 to 1,242 dwellings would bring more variety of stock. Townhouses, apartments and smaller homes could give more people a way into a suburb that has traditionally been out of reach.
That includes downsizers who want to stay close to the river and the Cottesloe amenities without maintaining a large garden.
Questions to ask before you buy
Buyers should look closely at the zoning of any property they are considering. A home that is zoned for higher density on one side of a laneway could be a very different proposition from one zoned for low density on the other.
It also pays to ask what is planned for neighbouring sites, particularly near Stirling Highway and the Cottesloe district centre.
What It Could Mean for Sellers and Investors
Sellers in the richest postcodes sometimes assume that rezoning will automatically lift their sale price. In reality, the effect depends on the individual lot, the final zoning and what a buyer can realistically build.
Developers typically assess factors such as lot size, frontage, setbacks and construction costs. A site that looks promising on paper may not stack up once those details are considered.
Investors may see opportunity in the proposed transition areas and along the highway corridor. Medium and higher density housing close to stations and shops is exactly the type of stock that State planning policy is trying to encourage.
The best approach is to get a current, local appraisal that reflects both the existing zoning and the proposed changes. That gives you a realistic picture rather than a guess.
What Happens Next
The strategy is still at an early stage. The shire plans to run community workshops to gather feedback from residents and landowners.
After that, staff will report back to council with the results and suggested changes. Only then will the strategy go out for formal public consultation.
| Stage | What happens |
|---|---|
| August council meeting | Option to limit development to the east approved |
| Community workshops | Residents and landowners give feedback |
| Report to council | Results and suggested changes presented |
| Formal public consultation | Draft strategy released for submissions |
| Final strategy | Adopted after consultation and State approval |
If you own property in Peppermint Grove, Cottesloe or Mosman Park, it is worth following this process closely. Community workshops are the best opportunity to influence the outcome before the draft is locked in.
The Bigger Picture: Infill Reaches the Richest Suburbs
This is not just a story about one of the richest councils in Australia. Councils across Perth, richest and otherwise, are being asked to deliver more homes near stations and transport corridors, and the State Government’s R30 base code applies well beyond one small shire.
If the richest council in the state is planning for this level of infill, it is reasonable to expect similar conversations in other established suburbs. Owners in leafy, low-density areas, including other rich-list pockets, may soon see their own local planning strategies revisited.
Perth’s richest address is also a useful test case, and the richest councils often set the tone. It shows how a council can try to balance two competing goals: delivering more housing, and preserving the tree canopy, history and amenity that residents value.
Frequently Asked Questions
Which suburb is Perth’s richest?
Peppermint Grove is widely regarded as the richest suburb in Perth, home to the richest households in the state. REIWA data shows it is also Perth’s most expensive suburb, with a median house sale price of $6,575,000 at the end of 2025-26.
How many homes does the richest shire’s strategy propose?
The draft local planning strategy proposes 1,242 dwellings at a 70 per cent take-up rate over the next 10 to 15 years. The shire currently has 617 homes.
Will the plan change zoning across the whole suburb?
No. Under the option council approved, development would be limited to the east of the suburb. A special control area would keep the existing R10 and R12.5 zoning from the laneway west of View Street to the Freshwater Bay foreshore.
How tall could buildings become?
Up to three storeys is proposed in the R30 and R40 areas, four storeys or more between Irvine and Keane streets, and six or more along Stirling Highway. Up to 16 storeys is proposed at Cottesloe Central and nearby commercial sites to the south.
Is the strategy final?
No. It is a draft. Community workshops come first, followed by a report to council and then formal public consultation.
Does a rezoning guarantee a higher sale price?
Not automatically. As REIWA has noted, a rise in a suburb’s median price does not guarantee that an individual home will rise by the same amount. The outcome depends on the specific lot and the final planning rules.
Thinking About Your Next Move in Perth’s Richest Suburbs?
If you own or are considering a property in Peppermint Grove, Cottesloe or Mosman Park, the draft strategy is a good reason to review your position. The team at Holdsworth Real Estate can provide a current appraisal that takes zoning, recent sales and the proposed changes into account.
Get in touch with Holdsworth Real Estate today to talk through what the plan could mean for your property, or for the home you hope to buy.
