The direction towards urban infill and compact living is being exhilarated around the world. The population growth in Perth, Western Australia, is steadily increasing in all directions. According to World Bank statistics, Perth, Australia, in which the need to maintain the possible conflict among increasing urban concentrations, is projected to be the fourth-largest metropolitan area in Australia by 2020. Directions 2031 and Beyond forecast that an additional 328,000 homes will be needed over the next 20 years to accommodate people, with 47% of those homes being located in the current metropolitan area, resulting in significant infill development in the current decade. Western Australia's Local Government has taken a game-changing action in association with state policy tools to meet this strategic requirement without compromising the negative impacts on the community and environment. Grouped residences are the fastest-growing housing type in the city, and before the Design WA reaches medium density level, the local planning structure must react to the State Planning Policy (SPP 7.0). This should guarantee that the SPP 7.0 design concepts may be efficiently applied throughout the interim period. This will give a stronger foundation for achieving well-designed residences that offer high levels of amenities for tenants, respect treasured community characteristics, and assist in creating diversified and high-quality housing to meet the needs of members of the public. To retrieve this discrepancy, this paper describes the local authority activity in Perth, Western Australia, and the steps taken to analyse the nature and degree of statewide policies. According to the report, newly introduced compact urban units will represent the next stage of infill development. It will produce improved residential and employment alternatives in the inner city. The study concluded that urban density decisions should be made more logically and strategically.