A proposal to build 400 new homes in the Hunter region has been refused access to a streamlined state government approval pathway, with planners citing concerns over density and local character.
Density Concerns Sink Fast-Track Bid
The 400-dwelling development, planned for 213 and 217 Richardson Road in Raymond Terrace, was rejected by the NSW Housing Delivery Authority at its meeting on December 9, 2025. The authority determined the project, which featured multiple buildings up to six storeys high, was too high density for the contextually low-density surrounding area.
Housing Delivery Authority member and Department of Planning, Housing and Infrastructure secretary Kiersten Fishburn stated that the necessary work to transition the locality to such an intense level of development had not been completed. "The work hasn't been done to transition it to the level of high density that's proposed," Ms Fishburn said.
The proposal included a commitment that 15 per cent of the 400 homes would be affordable housing for a period of 15 years.
Second Major Proposal Also Rejected
In a separate decision made at the same meeting, the authority also knocked back a proposal for 220 dwellings in North Gosford on the Central Coast. That project, which also included four buildings up to six storeys high with 15 per cent affordable housing and seniors housing, was rejected on similar grounds of excessive density. Infrastructure constraints were listed as an additional factor in that refusal.
The Housing Delivery Authority was established by the NSW government to accelerate the approval of large-scale housing projects. Its purpose is to help meet the state's target of delivering 377,000 new homes by July 2029 under the National Housing Accord. The fast-track process bypasses traditional development applications for projects that meet specific criteria, including a minimum estimated cost of more than $30 million outside Sydney, and being well-located and well-serviced.
Alternative Pathways Remain Open
Refusal by the authority does not mean the developments cannot proceed. The authority recommended that the applicants for both the Raymond Terrace and North Gosford sites be advised of alternative approval pathways within the NSW planning system. These include submitting a standard development application or a planning proposal to rezone the land.
To date, the authority's work has led to more than 300 proposals being declared state-significant, representing the potential for over 102,000 new homes. Several other Hunter region proposals, including high-rise residential developments above prominent Newcastle hotels and the NEX complex, have been recommended for state significant consideration.
The authority's processes recently underwent an independent review after it was discovered unauthorised AI software had been used to collate information for reports. The review, completed on December 16, 2025, found no issues with the integrity of the authority's statutory decision-making.
