Major development for inner Perth suburb

AAP

The West Australian government has taken steps to accommodate Perth's burgeoning population, unveiling plans for a 1600-unit development in the city's central suburbs.

Planning Minister John Day said the 15.8 hectare "urban village" would be built at the site of the former Shenton Park Hospital, which was decommissioned in 2014.

"A development of this type will go a long way to accommodating our growing population while providing people with housing diversity and choice," Mr Day said.

The project - now open for public comment - forms part of a state government initiative to increase density in Perth's inner suburbs as the population expands to a predicted 3.5 million by 2050.