The economic slump affecting Fremantle's CBD is set to continue for at least another six months as council waits to hear whether a bid to move 1,250 public servants there has been successful.

The CBD has been battling since the Myer store closed its doors in 2013 and 1,900 staff from Fremantle Hospital were transferred to Fiona Stanley Hospital in 2014.

In response, the Fremantle City Council hatched a plan to revitalise Kings Square.

In 2013, it entered into a contract with private equity firm Sirona Capital Management.

Sirona planned to redevelop the old Myer building, which it already owned, and buy the adjacent Queensgate building and car park from the council, transforming the complex alongside Kings Square into modern office and retail space.

With the money from the Queensgate sale, the council planned to demolish its existing offices and library in Kings Square and build a new $45 million civic building.

But the project has stalled.

The old Myer building in Fremantle is now an alternative department store for independent retailers. ( 720 ABC Perth: Emma Wynne )

The city is still waiting to hear whether a bid to move the Department of Housing head office, with its workforce of more than 1,200, to Fremantle has been successful.

The council's contract with Sirona expires on May 10.

Next Wednesday, the council will vote on whether to extend the contract until the State Government announces its decision on the Department of Housing move, slated for August.

Fremantle Mayor Brad Pettit said he was still hopeful the Kings Square redevelopment would go ahead.

"As much as we would have loved to have seen it already underway, we really are pleased the Government are still entertaining it [the Department of Housing move] given there is an oversupply of office space in Perth at the moment," Cr Pettit said.

"It's important to Fremantle. We need to be a proper, seven-day-a-week city. You can't do that without office workers."

Public opposition to redevelopment

Some residents, however, have questioned the value of the redevelopment.

On Wednesday around 180 people attended a public meeting held by the Fremantle Society, the Fremantle Inner City Residents Association (FICRA) and the Fremantle Residents and Ratepayers Association (FRRA).

John Dowson, president of the Fremantle Society, said the meeting voted unanimously to urge the council not to extend the contract with Sirona and to review the business case for Kings Square redevelopment.

Fremantle in 1957. Until 1966, Kings Square was divided into two triangles by High Street. ( Supplied: Fremantle City Library History Centre )

Mr Dowson said he believed the buildings being sold by the council were worth closer to $50 million, not the current $29 million price tag.

He said the society had independent valuations confirm this.

"We are one of the few councils in WA that has all these assets, and the asset base of this council is just being stripped away," Mr Dowson said.

"The council for years has not been listening to the community.

"We have had years of frustration where the council has a very pro-development, anti-heritage agenda."

Independent valuations done

Cr Pettit said he was aware of the society's concerns.

"We have got multiple independent experts valuing these properties," he said.

"I have said if they [the society] want to share their valuations with us, I'd love to see them, but that is yet to happen.

"Sirona are actually paying more than the market valuations because they have gone down in value [in the past few years]."

Attendees at Wednesday's meeting also called on the council to demolish its existing offices in Kings Square and leave the area as open space.

"What is the benefit to Fremantle of giving the mayor and the councillors and the staff a brand new building and destroying Kings Square in the process? How does that revitalise Fremantle?" Mr Dowson said.

"Fremantle deserves a civic space, a really good urban square in the middle of town."