Palmyra residents who were told their houses would be demolished to make way for the Perth Freight Link fear the Barnett Government's decision to push on with Roe 8 has again placed their homes under threat.

Key points: Contract signed for Roe 8 project, Government confirms

Contract signed for Roe 8 project, Government confirms Route for stage two of Perth Freight Link yet to be finalised

Route for stage two of Perth Freight Link yet to be finalised Homes in Palmyra previously targeted for demolition

The Smirke family and their neighbours in Moody Glen were told last year their homes along Leach Highway could be compulsorily acquired by the Government, to make way for stage two of the $1.9 billion freight link.

Then transport minister Dean Nalder later told relieved householders their homes were safe thanks to his proposal to build a tunnel from Stock Road to Fremantle.

However, Tania and Damon Smirke said the announcement the Government had signed a contract for the stage one Roe Highway extension across the Beeliar Wetlands had created new uncertainty.

"It means our lives have gone back to being in utter turmoil. People are playing with our lives and they can't do that," Tania Smirke said.

"It's like we are toys for their amusement. And it really does destroy your family life, it has a huge impact.

"We're not looking forward to the rest of this year at all."

Ms Smirke said the family was given no warning about the impending announcement, nor had they been given any indication whether their home was again at risk.

The fresh uncertainty is being keenly felt by the couple's four children, who fear being uprooted from the family home.

"Our children are very upset that it's come back on," she said.

"One of our children most particularly, he's not coping very well hearing we might be losing our house again."

All options on table: Transport Minister

The Barnett Government is committed to building Roe 8 by 2020 and hopes to begin construction of the $450 million project before the March state election, to link the highway to a new interchange at Stock Road.

The freight link project is designed to link Roe Highway to Fremantle to help heavy haulage. ( ABC News: Andrew O'Connor )

The second stage of the freight link would then connect Roe Highway to Fremantle, but where that will go and when it will be built remains unclear.

Transport Minister Bill Marmion said on Tuesday he was considering four options from Main Roads, including the widening of Stock Road and the lower section of Leach Highway, as well as two tunnel proposals.

Mr Nalder had advocated a tunnel under Whitegum Valley.

"The previous minister obviously has his views. I'll have my views," Mr Marmion said.

"I'm forming an opinion at the moment, and when I've got a preferred option I'll be taking that to Cabinet."

Mr Marmion said he would make a recommendation to Cabinet within a month.

Damon Smirke said the Premier and Minister needed to talk to the residents under threat from the proposal.

"My message to Colin Barnett is do the right thing," he said.

"Come out to Moody Glenn, meet everybody, see for yourself the torment that it's actually doing to us all."