Opening date set for new-look Fraser Suites as $47,000 in water damage sparks budget concerns

The State Government insists John Carey’s “bold” plan to turn a five-star city hotel into social and affordable housing is on track, despite a ‘great flood’ causing water damage. The West Australian can reveal the internal construction inside the former Fraser Suites was briefly forced to pause, after a leaking pipe caused damage of about $47,000 to the floors and ceilings. A project manager called it a “great flood” during a meeting with stakeholders. “We actually had a couple of great floods and a couple of minor floods,” he said. A Government spokesperson played down the damage, and said the first residents will move in next month, while stage two works continue. “A water leak occurred during stage 1 works on the 22nd of September 2025 from a failed seal in a pipe causing $47,000 of damage to limited flooring and ceilings,” they said. “The consultant Project Manager made a glib comment, taken out of context, that refers to the 22nd September incident during the tender briefing.”’ Housing Minister John Carey announced the $105 million purchase of Fraser Suites in June last year, saying at the time that buying established properties and converting them into government and affordable housing was a lever that had to used. It was the most costly acquisition ever made under the State Government’s spot purchase program when the sale went through. Some neighbouring residents have raised concerns the plan to convert the 19-storey tower into 236 social and affordable units could impact local property prices and result in anti-social behaviour. East Perth local John Morrison claims residents are frustrated by a lack of information. “There’s been no bodies, no trucks, no utes, no vehicles, no activity since late December,” he said. “They were getting regular email updates on the progress, and that all stopped. John Carey promised transparency, John Carey promised continual communication. “We’re long past (opposing it). We want to see it activated in the way that’s been promised.” Shadow Housing Minister Sandra Brewer said the water damage was evidence that the project was a “risk”, and questioned why a community housing provider was yet to be announced - as promised by the end of 2025. “This is yet another housing project plagued by poor management and delay under this Minister,” Ms Brewer said. “A couple of ‘great floods’ in a $105 million taxpayer-funded building is not bad luck, it’s a failure of judgement.” About 70 percent of the units will be leased as affordable housing for low-paid workers. The remainder will be rented to social housing tenants who are drawn from a wait-list of more than 20,000 applicant households. The Government said a preferred Community Housing Provider has been chosen, and is currently vetting applications for the first tenants to move in next month.