Developer DOMA Group says it hopes to start construction on the massive Store apartments project in the second quarter of this year as the state tries to accelerate housing supply.
The Store project on former state government land in Newcastle West is one of several large apartment developments to have faced delays or stalled over the past 18 months.
The owners of the approved Spotlight store redevelopment have put the site on the market and the proposed Cambridge Hotel development as student accommodation is also in doubt.
DOMA said in April that it hoped to start work on the 350-unit Store complex in the third quarter of 2023 after amending part of its development approval and continuing discussions with builders and financiers.
The company said on Friday that it hoped to start construction before the middle of this year.
Newcastle council says it is at the "forefront" of the state's housing supply pipeline after recording the third most construction approvals in NSW in the first five months of this financial year.
The Newcastle Herald reported on Thursday that the council approved construction of 920 dwellings in the five months to November, due mainly to a surge in apartment and townhouse approvals.
The Newcastle approvals included 81 houses and 837 "other" residential buildings, which include apartments and townhouses.
Australian Bureau of Statistics figures show Newcastle led other councils in the Lower Hunter in building approvals and trailed only The Hills (1579) and Blacktown (1442) across the state.
Cessnock approved construction of 439 dwellings, Lake Macquarie 417, Maitland 370 and Port Stephens 108.
NSW is facing pressure to reach its target of 75,000 new homes a year over the next five years under the new National Housing Accord.
The building industry has said high construction costs, worker shortages, supply-chain problems, interest rate rises and planning approval delays have put the target well out of reach.
The Hunter Central Coast Regional Planning Panel last month approved a massive 1058-lot subdivision in Lake Macquarie council area near Cameron Park and is due to meet this month to decide on a similar-sized portion of the estate in Newcastle.
Newcastle council and the HCCRPP rejected the giant Winten Pty Ltd proposal last year over traffic concerns, but the developer asked for a review of the decision.
Newcastle council planning and environment executive director Michelle Bisson said City of Newcastle was on track to meet its housing targets.
"CN has also been planning for future growth and higher densities to facilitate housing opportunities for our community through our work on the renewal corridors, Wickham Masterplan and currently through our collaboration with the Department of Planning on the Broadmeadow Place Strategy," Ms Bisson said.
The new building approval figures mark a sharp turnaround from the 2022-23 financial year, when Newcastle approved the second fewest house and apartment builds in the Lower Hunter.
Newcastle recorded 691 building approvals in 2022-23, compared with 1306 in Lake Macquarie, 1090 in Cessnock, 751 in Maitland and 541 in Port Stephens.
Lord mayor Nuatali Nelmes said the surge in building approvals in 2023-24 followed a strong year for development approvals in Newcastle in 2022-23.
"In the 2022-23 financial year City of Newcastle approved almost 1500 new dwellings, and it is pleasing to see these projects now flowing through into the construction phase," she said.
