SAS families welcome housing sale backdown

The federal government's decision to abandon the planned sale of some Defence Force housing adjoining Perth's Campbell Barracks is a welcome relief to resident families.

The proposal was to sell one-quarter of the ageing Defence Housing Australia-owned properties at Seaward Village in Swanbourne for a civilian redevelopment to raise more than $100 million.

The funds were to be used to renovate the remaining military homes, but families voiced security concerns.

Foreign minister Julie Bishop and WA Premier Colin Barnett, whose electorates cover both the village and the barracks, were lobbied intensively by residents for some 20 months, prompting a review of the plan.

"Certainly the lobbying helped and certainly people power has won, but Julie Bishop power has also succeeded today," assistant Minister for Defence Michael McCormack told reporters in Perth on Tuesday.

Mr McCormack said he still had faith in Defence Housing Australia despite the stress the proposal had put on residents and security concerns being obvious to even a casual observer.

"And that's why I'm so glad that the right decision has been made today," he said.

Ms Bishop agreed, saying the soldiers were particularly concerned about the prospect of their families being relocated while they were on assignment.

"I shared with them their concerns," she said.

"There was a whole range of potential risks that we took into account."

Former SAS commander Brigadier Terry Nolan told ABC radio the proposal was "a stupid decision in the first place".

"It would undermine the viability of Swanbourne as the base for the Special Air Services Regiment.

"It would undermine the security of the families in these uncertain security times and it made no sense at all."