Maitland Road is poised to become Newcastle's next boom residential corridor as developers turn their attention to Mayfield's dilapidated commercial strip.
A development company called JMG Holdings has lodged plans for a five-storey apartment building on Maitland Road with 38 units and a childcare centre.
The $17 million proposal opposite the new Coles shopping centre follows City of Newcastle's approval of a 58-unit redevelopment of the Mayfield BP service station site in November.
Maitland Road has been identified as a growth corridor in Newcastle council planning documents and regional planning strategies.
Newcastle real estate agent Scott Walkom said he expected more developers to start seeing the potential of the area.
"Land is rare in the inner-city, and it already has good infrastructure with the shops there," he said.
"You can ride into town on the flat."
Mayfield's median house price has risen 44 per cent in the past three years, from $553,000 in May 2020 to $797,000 last month, after hitting a peak of $838,000 in October 2022.
Median rents have jumped from $430 to $580 a week in the suburb in three years.
Mayfield community activist John Hayes said he expected development in Maitland Road to mirror the apartment boom which has changed the face of Brunker Road at Adamstown and Broadmeadow.
"Things have happened in the inner-city, and now it's time to breathe out a bit," the Correct Planning and Consultation for Mayfield Group convener said.
"If you look at Brunker Road as an example, I wouldn't be surprised to see Maitland Road follow the same path.
"There's quite a lot of dilapidated buildings along Maitland Road, so I wouldn't be surprised to see it happen over time."
The new apartment proposal at 154-166 Maitland Road is in the "town centre" section of the Mayfield growth corridor identified in the council's Development Control Plan.
The "town centre" section runs from Havelock to Hanbury streets and is earmarked for 340 more dwellings.
The development site covers 2500 square metres and includes a vacant block, low-rise commercial buildings and the 1919 Empire building.
None of the buildings are listed on the State Heritage Inventory, and the development application says the site is "not affected by heritage considerations".
Mr Walkom said Brunker Road was "working well" as a growth corridor.
"It's spurred on developers to bring more residents into the city," he said.
