Mandurah line services south of Esplanade station commenced on 23 December 2007.

The two entrances to the concourse level on the northern end are from underneath the Horseshoe Bridge and a tunnel that leads directly to Perth station.

[5] There are two pieces of public art at Perth Underground station: Take it or leave it, by Jurek Wybraniec and Stephen Neille, and Light, space and place, by Anne Neil.

The first South West Metropolitan Railway Master Plan, published in 1999, detailed the route of the future Mandurah line.

It would branch off the Armadale line at Kenwick, requiring no new stations in the Perth central business district (CBD).

[13] The design and construction of Perth Underground station was overseen by the PTA[14] under its New MetroRail division.

[15][16] Acquisition of land for the construction of Perth Underground station was managed by LandCorp and occurred between May 2003 and March 2004.

[18][19] At least one landowner later sued the Western Australian Planning Commission, claiming the amount they were compensated was not enough.

[20] The construction of the Mandurah line, also known as the Southern Suburbs Railway, was divided into eight main contract packages.

[23] The contract for the design and construction of Package F was awarded to a joint venture between Leighton Contractors and Kumagai Gumi in February 2004 at a cost of $324.5 million.

[14] Demolition works for the buildings above the Perth Underground station site occurred between April[26] and August 2004.

[32] Collectively, these four buildings are part of the William & Wellington Street Precinct on the Heritage Council database.

Piles were drilled 55 metres (180 ft) deep, which anchored a concrete slab which formed a roof over the space to be excavated below.

The Wellington Building was attached to this concrete slab, allowing the old foundations to be removed and excavation to occur below.

[34][35] In March 2005, the Mitchell's Building's façade was dismantled and stored offsite, with the intention of putting it back in place when the station was complete.

[8] The diaphragm walls for the Perth Underground station box were constructed between September 2004 and January 2005.

[38][39] The station box is wider at the northern end as the diaphragm walls had to deviate around the Wellington Building.

This left the area with large amounts of wet sand, which made ensuring the station box would not move a concern.

[51] The TBM broke through the Perth Underground station box for the second time on 31 August 2006.

[47][52] It was again transported to the northern side of the station box, where it started boring the final tunnel to the dive structure.

[53][54] By the end of 2006, most structural work had been completed, and architectural finishes and electrical and mechanical fit-out had commenced.

As an incentive, the state government committed to a 15-year lease of 22,000 square metres (240,000 sq ft) of office space within the future development.

[63][66] The Evolution Consortium was chosen as the preferred proponent in September 2006,[67][68] and by December 2006, the contract had been signed and the design revealed.

The service between Perth Underground and Elizabeth Quay stations is considered part of the Yanchep and Mandurah lines simultaneously.