The Crichton Trust said it will “reflect” on the decision by the council not to progress with their Ladyfield masterplan.
Members of the economy and resources committee voted to take “no further proactive work” over the controversial £45 million plan.
Instead councillors want to create a Dumfries masterplan and review housing allocations in the town as part of a new local development plan.
The trust’s statement said: “We welcome the decision to explore the development of a masterplan for Dumfries as a whole and at a future date consider the appropriateness of the Ladyfield site within that wider context.
“The vitality of Dumfries town centre in particular is vital to the future of The Crichton Quarter and we believe a thriving Dumfries town centre is supported by growth in those studying, visiting, living and working here.
“We respect and value the views of our local residents and neighbours, some of whom continue to have deep concerns about any form of development on the Ladyfield site.
“We acknowledge that our elected representatives have rightly considered these views and concerns and have sought to balance these concerns with the evidence of our urgent local housing needs.
“We share the love of the Ladyfield site and care deeply about people, communities, nature, the environment, and the economy, which is why we would like to see a sensitive, nature and wellbeing led approach to any future development and why we have taken steps within the master planning process to reduce the proposed number of properties on the site and create a new parkland with enhanced habitat areas across over a third of the land protecting wildlife and all the mature trees as much as possible.
“We are concerned that more conventional developers may take a less sensitive and shorter-term commercial approach.
“We will reflect on the decision today along with all that has been said, the process to date, the expressions of support and reasons for opposition to development and consider how best to move forward with, and for, all involved.”