City of Newcastle has reported a record $1.8 billion worth of development approvals over the past 12 months, signalling developer confidence in the city has reached an all- time high.
The surge in development activity is expected to generate approximately 3,500 jobs in the area, as council predicts significant future development applications in the coming year to be strong.
In 2021, City of Newcastle recorded a 20% increase in the number of development applications (DAs) lodged, in addition to state significant projects.
In total, over 1,600 DAs were lodged with the city’s council in 2021, compared to 1,361 in 2020.
The value of lodged DAs increased by a staggering 89%, highlighting the significant nature of development unfolding in the city, City of Newcastle said.
The council specifically recognised the economic significance of The Store redevelopment ($118 million), former Dairy Farmer’s site ($100 million), and a 133-lot industrial subdivision at Black Hill ($33 million).
City of Newcastle Manager Regulatory, Planning and Assessment Michelle Bisson attributed the surging development activity to low interest rates and a booming property market.
“Newcastle is surging ahead when it comes to injecting cash into bricks and mortar, despite the pandemic, reflecting high levels of optimism amongst homeowners, investors and developers,” Ms Bisson said.
“The highest value DAs are predominantly in Newcastle West, Adamstown, Beresfield, and Merewether but we’ve also seen a surge in residential development in suburbs such as Wallsend, Fletcher and New Lambton for residential alterations, additions and single dwellings.
“The construction associated with this level of development (is expected to) generate approximately 3,500 direct jobs and buoy Newcastle’s economy which is a positive as we come up against the ongoing impacts of COVID-19 and look to the future.”
City of Newcastle recently announced a design competition for the $100m redevelopment of the former ‘Spotlight and Anaconda’ site at 711 Hunter Street in the city’s West-end.
Ms Bisson previously declared that “Newcastle is coming of age by transforming into a modern metropolitan city, with significant redevelopment occurring, particularly in the West-end.”
She added that “developer confidence in our city is at an all-time high.”
“Ongoing revitalisation and development is continuing to transform Newcastle, and 2022 is set to be another exciting and busy year for our city.”
Maia O’Connor
Information source: Media release, City of Newcastle