Residents will be able to see more development at Koombana North late next year, after the Bunbury City Council approved a new proposal.
At its meeting on Tuesday, October 1, council agreed to a new proposal from Tecon Australia which will see a five-storey, mixed-use building on Lot 42, Holman Street.
Council has allowed for a minor encroachment over the boundary line, on the eastern and western sides.
The encroachment relates to the building levels above the ground floor.
Tecon Australia will be responsible for all costs associated with the surrenders.
"The encroachment will give each of the apartments a bit more space," Century 21 principal Paul Duffy said.
Bunbury Mayor Gary Brennan complimented all those involved in the project's construction phase.
"The proposed development will add to the investment attraction of Koombana North. This is a high quality design and development which I welcome," he said.
Bunbury Chamber of Commerce and Industry chief executive Mark Seaward said the project would help to attract more people to the region.
"Koombana North has for a number of years increased the footprint of the CBD, so additional development in that area is welcome as it will add to the vibrancy and aesthetic of that area," he said.
"The challenge is to link Koombana North to the traditional CBD, this is also true when the development around the waterfront continues over the next few years."
The construction phase for Lot 42 is expected to begin in Late 2020. Mr Duffy said Century 21 would be seeking expressions of interest later this month.
The approval comes after the Lot 5 development was sold earlier this year.