Elizabeth Quay no 'rich enclave': Barnett

Colin Barnett denies Perth's contentious Elizabeth Quay development will be an "enclave for the wealthy" and insists it now has full public support.

Labelled by the opposition as the Liberal leader's "pet project", the waterfront precinct is costing the state government $440 million and is expected to attract a further $2.2 billion of private sector investment.

The premier said on Wednesday it was a transformational project that would "change Perth forever".

"And I think the public of Western Australia now fully support this," he told reporters.

"There were naysayers and doubters but I think they've gone.

"People have said this will be some sort of enclave for the rich and wealthy. That is not the case - this is very much a public area."

Mr Barnett said $90 million worth of land had been sold around the public spaces, including to the Ritz-Carlton hotel group and Chevron, and he expected the government would eventually recoup its outlay.

"The state is well on the way to recovering much of what has been spent."

He said the project was on time and on budget.

Mr Barnett said by this time next year, public works including the inlet and boardwalk will be completed.

Yet it will take several more years for all of the surrounding commercial and residential properties to be built.

Planning minister John Day said negotiations were underway to sell two lots and other lots would follow over the next two years.

Mr Day also said compensation action with the leaseholders of a Chinese restaurant knocked down to make way for the precinct, Wang Nominees, had not yet settled.

The Wangs have already been paid $7.25 million by the state government.

"We think based on all the property advice we have within government that that is a very fair payment but as is their right, they have elected to pursue the matter and it's currently in the Supreme Court," he said.

Elizabeth Quay was dubbed "Betty's Jetty" and the "Regina Marina" by locals as it was named by Mr Barnett after the Queen.