Major Newcastle Development Proposes Significant Height Increase
Plans to transform the former Channel 10 building on Darby Street in Newcastle into two substantial residential towers have entered the public exhibition phase. The proposal, submitted by Vivacity Property to the NSW Housing Delivery Authority (HDA), seeks to replace the existing structure with a mixed-use development featuring 113 apartments across two buildings.
Development Details and Scale
The project envisions constructing a 13-storey tower on Darby Street and an eight-storey building on Tyrell Street, directly opposite the Newcastle Art Gallery. This development would involve demolishing the current 45-year-old building, which is only partially leased, to make way for a mix of one to four-bedroom units. The ground floor is planned to include retail space with potential for outdoor dining, enhancing the area's commercial vibrancy.
With an estimated cost exceeding $114 million, the proposal qualifies as a State Significant Development, far surpassing the regional NSW threshold of $30 million and 40 dwellings. The Darby Street tower would rise to 45 metres in height, featuring a rooftop communal area, while the Tyrell Street building would reach 27.7 metres. Both structures would include basement car parking, communal open spaces, and associated landscaping.
Height and Density Increases
A key aspect of the application is a concurrent rezoning request to allow a 39.2 per cent increase in the floor space ratio and raise the permissible building height from 14 metres to 45 metres. This represents a substantial 221 per cent jump, more than tripling the current height limit. According to the Environmental Impact Statement (EIS) lodged with the application, an initial design complying with existing controls would have provided only 48 units across the two buildings.
The EIS argues that while compliant, this earlier design did not deliver a suitable and desirable density and dwelling yield for the well-located site and would not be economically viable to deliver. The current proposal is positioned as a response to these challenges, aiming to maximise housing supply in a strategic location.
Community and Economic Benefits
The development's EIS highlights several anticipated benefits for the Newcastle area. It claims the project will breathe fresh excitement into the locality with a design that is unique yet complementary to the surrounding environment. The statement emphasises that the increased density will contribute to a vibrant community, with new residents expected to frequent nearby retail premises, use cycleways and pedestrian paths, and utilise public transport options.
The EIS further notes: This increase in density of human activity will be a positive addition to the local area. The site is ideal for increased density of housing, given the extensive range of service facilities and infrastructure available.
The project aligns with broader state housing targets, as the HDA was established in December 2024 to accelerate home delivery and help meet the NSW goal of 377,000 new homes by July 2029. The authority is leading a streamlined State Significant Development pathway that includes concurrent rezoning processes like the one proposed here.
Community Engagement and Considerations
Vivacity Property reports undertaking comprehensive engagement with the City of Newcastle, government agencies, residents, and local businesses. Key concerns raised during this process included:
- Heritage considerations
- Parking and access arrangements
- Building height impacts
- Overshadowing effects
- Construction management protocols
The developer asserts these issues have been addressed through design modifications and mitigation measures. Additionally, the council's Affordable Housing Contributions Scheme would see the developer make a $1.5 million contribution to support broader housing affordability in the region.
Next Steps and Timeline
The fit-out of retail premises and their hours of operation will be subject to a separate application process. If the current proposal gains approval, construction is anticipated to commence in 2028, with an expected completion timeline of two years. The public exhibition period provides community members with an opportunity to review the plans and make submissions through the NSW Planning Portal.
This development represents a significant shift in Newcastle's urban landscape, potentially setting precedents for future high-density projects in well-serviced inner-city locations. The proposal's emphasis on activating public spaces, supporting local businesses, and providing diverse housing types reflects contemporary urban planning priorities while addressing the pressing need for increased housing supply in regional centres.
