A twin-tower development up to 43 storeys high will be built on Perth's iconic Scarborough Beach after a revised plan was given the tick of approval.

The project, put forward by Chinese-backed developers 3 Oceans, will see two mixed-use residential and hotel accommodation towers of 43 and 33 storeys built on Scarborough Beach Road near the main beach.

The towers will be more than double the height of the existing tallest structure along the beach, the 18-storey Rendezvous Hotel.

The Metropolitan Redevelopment Authority (MRA) initially rejected a proposed $400 million plan, which included two towers — one of 43 storeys and another of 35 storeys — over concerns it was a significant overdevelopment of the site.

The initial proposal included 346 apartments and 158 hotel rooms. ( Supplied: Hillam Architects )

It found the building was "of excessive bulk and scale that is inconsistent with the established and intended built form and character of the area".

But after a new proposal was put forward which cut the number of apartments and hotel rooms — the sale of which nets developers a significant part of their return on mixed-use projects — the development was given the green light.

The new proposal will see the number of hotel rooms reduced from 158 to 119, and apartments from 346 to 314.

It also cuts the height of the second tower from 35 storeys to 33.

The new proposal will also include 100 public parking bays, a "WA coastal experience centre", an observation deck with art gallery and restaurant/cafe, retail and food outlets covering almost 3,000 square metres.

Proposal divided public opinion

MRA chairman George McCullagh said there had been strong views about the development, but the new design was much better received by the public.

"Developments of this nature inevitably divide public opinion, and in the case of Scarborough and other metropolitan areas that are rich in history and supported by a passionate local community, the board gave due consideration to the broad range of views from residents, business, visitors and tourists," he said.

"It was clear that the revised proposal attracted greater community support with new cultural and dining options and tourist amenities, as well as an increase in diversity of residential products for new and existing residents."

Scarborough is one of Perth's most popular beaches. ( ABC News: Lucy Martin )

In approving the project, Mr McCullagh said 3 Oceans had worked hard to come up with a design that recognised the earlier concerns raised.

"Through an informal mediation process, 3 Oceans worked with independent architects to improve design quality and reduce local amenity impacts including a reduction in the height of the second tower and an overall reduction in floor space," Mr McCullagh said.

Community 'betrayed' by approval

The community group Sunsets Not Skyscrapers, which presented the MRA board with a petition of more than 1500 signatures from residents who are opposed to the project, said the approval would set a precedent.

"The community's response is one of anger. We feel very betrayed by the process that has taken place," spokeswoman Janet Pettigrew said.

The group has criticised the MRA for allowing the towers despite Scarborough's 12-storey height limit.

"This decision will open the floodgates for more skyscrapers along our coastline changing it forever," said spokeswoman Lisa Thornton.

Ms Pettigrew said the project didn't account for the traffic problems the project would bring, and the approval had condemned the area to years of disruption during the construction phase.

"This is going to be a two-and-a-half year build," she said. "There's going to be trucks and cranes and goodness knows what. People will be avoiding this area because it's just going to be a nightmare to get into.

"The Government is not listening to the community, which has made it clear over many years that this is not a future we want for our beaches. It can expect an electoral backlash for this bad decision."

Businesses welcome new development

The development is sure to bring an injection of business to Scarborough, with an influx of tourists and local residents expected to descend on the beachside suburb once construction is complete.

Local business owners, who have been pushing for the project to be approved, were today rejoicing at the news.

Sandbar owner Ben Randall supports the proposed new towers. ( ABC News: Emily Piesse )

"It's absolutely fantastic news. I just think (this) world-class facility is going to be so good, not just for Scarborough Beach, but for our local economy at a time that is much needed," said Sandbar owner Ben Randall.

"This investment is going to be significant and create thousands of jobs and bring a lot of people, new tourists and new customers to Scarborough Beach."

Mr Randall said he expected it would attract more international tourists to Perth.

"We're putting Scarborough Beach on the world map and obviously the developers and the owners have seen this potential in Scarborough Beach, so I strongly welcome it."

The City of Stirling also welcomed the decision, with Mayor Mark Irwin saying it would set a benchmark for future private development in the area.

"The city is excited about the future of Scarborough and the many benefits this development will bring, including greater visitation and the injection of further vibrancy into the Scarborough area," he said.

Mr Irwin said it also represented the opportunity to address existing traffic management issues and improve road networks in the area.

Urban Development Institute of WA chief executive Allison Hailes said the project was a welcome boost for a depressed state economy.

"Not only does the project set a high standard for future development, hundreds of short- and long-term jobs will be created both during construction and in local employment on completion," she said.

"In the current economic climate that is good news for the people of WA."

The project is associated with Chinese steel tycoon Ma Xibo, whose Hebei Qianjin steel group is the majority owner of 3 Oceans Property.

It also had backing from a Singapore-based investment group Hong Rong.

The State Government has committed $100 million to redevelopment of the formerly run-down Scarborough foreshore, building a new beachside pool, skate facilities, playground and play space for families.