The NSW government says it has not abandoned plans for a "dynamic, mixed-use" precinct on the Honeysuckle waterfront, despite increasing the social and affordable housing component of the project.
The government has sought to clarify an earlier statement to the Newcastle Herald, reported on Wednesday, that it was "exploring opportunities to deliver increased social and affordable housing at Honeysuckle HQ".
Hunter and Central Coast Development Corporation, which is managing the land sale, said on Friday that it had increased its requirement for social and affordable housing on the three-hectare development site to 30 per cent in line with the government's commitment to increase housing supply.
"HCCDC is still seeking to create a dynamic, mixed-use precinct in the heart of the city, with housing being just one component of the mixed-use outcome," a spokesperson said.
"HCCDC is exploring increasing existing requirements for 10 per cent of apartments at Honeysuckle HQ to be affordable housing to 30 per cent of apartments being social and affordable housing in line with the government's position on housing."
The former Coalition government launched a sale process for the "premium" site two years ago and was due to announce the preferred proponent by the end of 2023.
The Herald report on Wednesday quoted a source saying major national property player Walker Corporation was HCCDC's preferred tenderer, but HCCDC said on Friday that it was "in a competitive process involving three shortlisted proponents".
"A preferred developer has not been identified," a spokesperson said.
Honeysuckle HQ is the last parcel of land to be sold as part of the 30-year-old redevelopment of inner-city Newcastle's former industrial waterfront.
The site stretches from Cottage Creek to the Wickham marina and includes a one-hectare land parcel on the southern side of Honeysuckle Drive with a height limit up to 90 metres.
Newcastle MP Tim Crakanthorp said last year when in opposition that Honeysuckle HQ was an opportunity for the Coalition government to show it was serious about ending the housing crisis.
