A Sydney developer is seeking approval for an $18 million high-rise apartment tower in Newcastle West using new "co-living" planning rules in NSW.
Good Housing plans to demolish an existing commercial building on the corner of Denison and Parry streets and erect a 15-storey unit block with 72 rented rooms.
It is understood to be the first development in Newcastle under co-living provisions contained in the new Housing State Environmental Planning Policy, which came into effect in November 2021.
The SEPP says co-living accommodation is designed to provide small private rooms up to 25 square metres with shared communal spaces.
The rooms in the proposed Good Housing development are 24.5 square metres and include private kitchens and bathrooms.
The proposal includes communal indoor and outdoor living areas and a gymnasium.
Good Housing co-founder Anthony Anisse told the Newcastle Herald that the proposed development was designed to cater for students, young professionals and divorcees looking for cheaper rental accommodation close to University of Newcastle's CBD campus, Newcastle TAFE and transport services.
The company would employ a full-time building manager to promote social cohesion among tenants.
"It's an alternative type of dwelling that we don't believe has been done before in the Newcastle CBD," Mr Anisse said.
"It'll have a mixture of students and young professionals who can't afford a bigger one-bedder.
"The rooms will have hotel-type amenity without the price."
The median price of a one-bedroom unit is $350 in the greater Newcastle area and $500 in the inner-city.
Mr Anisse said co-living apartment rents would be lower than the typical market rate for a one-bedroom apartment in central Newcastle.
Good Housing has lodged a concept development application with a view to submitting a more detailed DA in the future.
"Approval of the concept proposal will contribute to the diversity of housing in the Newcastle city centre in a conceptual built form that is consistent with the desired future character of the area," the application says.
The concept DA includes parking for 15 cars, 16 motorcycles and 72 bicycles, which the application says satisfies planning rules for co-living developments.
The proposed 47-metre building is 13 metres lower than the height limit for the site but exceeds the allowable floor space ratio.
