High interest rates have cut development approvals in Lake Macquarie to their lowest level in five years, but mayor Kay Fraser predicts investment will rebound in line with the NSW government's housing supply push.
Developments worth $1.2 billion were approved in Lake Macquarie in the 2023-2024 financial year, bringing the five-year approvals total to more than $7 billion.
Winten Property's massive Minmi and Cameron Park housing estate, a project shared with Newcastle, was the year's most expensive development application approved in Lake Macquarie at $116 million.
The estate's 1079 lots in Lake Macquarie, approved by the Hunter and Central Coast Regional Planning Panel in December, made Cameron Park the leading suburb for development approvals at $124.8 million.
The council's development, planning and regulation director, David Antcliff, said the DA approvals reflected continued growth and investment confidence in Lake Macquarie.
"It's not just the overall value of these DAs that is encouraging to support the city's growth, it's their diversity," he said.
"We're handling applications for everything from medium-density infill developments in centrally located suburbs like Mount Hutton and Edgeworth to shopping centre upgrades, entertainment facilities and commercial premises.
"It's a demonstration of our city and the wider Hunter region's growth and our ongoing push to address Australia's housing crisis."
Edgeworth was the second suburb on the list for development value in 2023-2024 with approvals worth $72 million and Charlestown was third on $55.5 million.
The council reported an average of 18 days to process more than 2000 development applications and modifications across the financial year.
The council approved 17 applications or modifications worth at least $10 million each, including a high-rise residential tower at Charlestown at $13.6 million, a residential unit block at Edgeworth worth $25 million and a mixed-use commercial and residential development at Toronto with an estimated construction cost of $36.6 million.
Mr Antcliff said the relatively low number of approvals in the year reflected a nationwide trend brought on by higher interest rates and inflation.
"We are very keen to grow this city with suitable, sustainable development, and we are eager to assess applications as they are submitted," he said.
The council has prepared a planning strategy for the "North West Catalyst Area" between Teralba and Glendale which predicts the suburbs will almost double in population over the next 17 years.
The strategy includes establishing Lake Mac Central, a precinct which could house 10,000 residents around Cockle Creek Station and the emerging Boolaroo commercial precinct.
Cr Fraser said the strategy, combined with the NSW government's push for more housing density around train stations, meant more high-value development was on the horizon.
"The challenge is always to balance the need for growth with the desire to retain the amenity and enviable lifestyle we enjoy here in Lake Mac," she said.
The NSW government's latest housing supply reforms come into effect on Monday, allowing semi-detached and duplex developments in residential zones which previously prohibited them.
Further reforms later in the year will allow two-storey and six-storey apartment buildings in residential zones where they were previously forbidden.
Meanwhile, Newcastle council has voted to review its social infrastructure strategy in light of government plans to increase the city's population much faster than previously forecast.
The government's housing push could increase Newcastle council area's population to 256,000 by 2041, 55,000 more than under previous targets.
The social infrastructure strategy guides the council's spending on assets such as libraries, pools, galleries, parks and sports fields.
