With the investment focus on Perth's high-profile urban redevelopments - Elizabeth Quay, Perth City Link and the Waterbank project - one of the city's prime development sites, the East Perth Power Station, is likely to remain dormant.
Metropolitan Redevelopment Authority chief executive Kieran Kinsella said there had been interest in the site but the upfront costs for the power station building had pushed the project, which is just 2km from the CBD, down the development pipeline.
"The difference between the East Perth Power Station and other projects is the restoration and conservation of the power station building - which is a fairly expensive hurdle that has to be dealt with - and, in this tight market, we haven't found the solution to unlock that door but we're still very interested, " Mr Kinsella said.
"With the Waterbank project at the causeway, Elizabeth Quay and Perth City Link, we have deliberately turned down our attention on the East Perth Power Station site (while we deliver) those three major projects."
The 8.5ha East Perth Power Station is bounded by East Parade, Summers Street, the Swan River and the Graham Farmer Freeway and it is next to the East Perth train station.
The former Labor government spent $14 million restoring the exterior and mooted a $500 million plan to move the WA Museum there. But that plan was scotched by the Barnett Government.
The master plan for the site includes four or five residential towers with views up the Swan River into Maylands, over Burswood and Heirisson Island.
"There is beautiful land around the power station but getting the right purpose for the building will be the lynch pin for the rest of the development, " Mr Kinsella said.
Mr Kinsella said three interested investors had toured the former power station site.
"We are very much . . . listening to how we could bring the site to life, " he said. "There may be an idea that we could adapt but we really have the project in a holding mode at the moment."