Hundreds of homes will be built on the site of the historic Broadmeadow locomotive depot site, the state government revealed in its on-going audit of unused government land that would be suitable for housing.
Up to 208 dwellings are planned for the site, which is currently owned by Transport NSW.
The government stated the development at 25 and 35 Cameron Street would be next door to the heritage-listed locomotive depot, which would remain undisturbed.
"The developable part of the site is vacant and partially-vegetated land," a government spokesperson told the Newcastle Herald.
The total site is 250,000 square metres, but only 83,000 square metres will be developed. Landcom, the state government's land and property development arm, will deliver the project.
In March, plans to subdivide the Broadmeadow locomotive depot were recommended for approval on the proviso a conservation management plan was prepared for the site.
The development is falls with the wider Hunter Park precinct redevelopment. The 208 dwellings could be dramatically increased if assessments show the land is suitable for high-density housing.
In July, the NSW government released the 30-year planning strategy for Broadmeadow, which could see the area grow by 20,000 new homes and 40,000 residents.
The Newcastle Herald previously reported the master plan estimated almost 3000 people could occupy up to 1000 units on the Broadmeadow locomotive depot site.
The site would include buildings up to 73-metres high, or 95 metres with the housing bonus, and public access to a new park established around the depot's historic train turntables.
The state government is also investigating a smaller block in Morisset as a potential housing site.
The 1000-square-metre site at 8 Yambo Street is owned by Hunter Water and previously contained a high-level water tank and radio base.
Landcom is reviewing the now-vacant site, but the government estimates it could hold 11 dwellings.
In September, the NSW government announced Stockton Centre was earmarked for development.
The former residential centre for people with disabilities could soon be overhauled to hold up to 500 homes.
Details on the quantity and types of housing for all sites will be confirmed following further due diligence and subsequent planning and regulatory approvals.
Across the state, the government identified 14 new sites to provide enough land to build 1400 homes.
In addition to the sites identified through the property audit, the government will also shortly commence construction of 194 new social homes on 16 further sites across the state owned by Homes NSW.
Wyong will receive 18 new social homes on Cutler Driver, near Wyong Public School, while Maryland will get an additional 16 near Maryland Public School.
NSW Premier Chris Minns said the government knew housing affordability and available was the single biggest pressure facing the people of NSW
"Our property audit continues to focus on ensuring unused or surplus government land becomes available to deliver more housing," Mr Minns said.
Lands and Property Minister Steve Kamper said the audit had been methodically assessing government land.
"It is now in full swing delivering surplus land for more homes, with 28 sites so far announced and capable of providing more than 3000 residential dwellings" he said.