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Regional development: More apartments built in Newcastle

While Sydney gets the headlines, population booms, or the desire for one, are also transforming the landscapes and thinking in regional cities, like Newcastle, and coastal towns around NSW.

Sydney is on the verge of becoming a mini-Tokyo

A city skyline once dominated by chimney stacks and factories is being replaced by high-rise apartments.

But while many are happy to see Newcastle’s industrial heart become a thriving mini-metropolis, other residents of the steel city are scared it is losing its soul — and parking spaces.

There are 13 large residential blocks under construction or in various stages of planning across Newcastle.

Development between Hunter and King streets in Newcastle West. Picture: Peter Lorimer
Development between Hunter and King streets in Newcastle West. Picture: Peter Lorimer

The city has witnessed a strong increase in development over the past five years, with more than $4.2 billion in total building determinations, up from $2.1 billion in the previous five years.

In 2017-18 there was a record $1.2 billion in building approvals.

Ian Lobb is the owner of the Lass O’Gowrie Hotel, a live music institution of Newcastle on Railway St, Wickham.

Next door, construction will start shortly on 135 apartments.

Ian Lobb with his daughter Michelle outside the Lass O’Gowrie Hotel, which is next door to a 135 apartment development. Picture: Peter Lorimer
Ian Lobb with his daughter Michelle outside the Lass O’Gowrie Hotel, which is next door to a 135 apartment development. Picture: Peter Lorimer

Mr Lobb, who remembers when Wickham was more industrial sheds than chalets, said he worried about the future of his hotel.

“We are worried that when these people move in they will complain about the noise and have it closed down as a live music venue,” Mr Lobb, who has owned the pub for 28 years, said.

“It’s human nature to get crooked at midnight if you are being disturbed.”

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To enjoy his retirement Mr Lobb, 68, is selling his music venue to a publican.

He spurned three offers to sell to developers, saying: “I would rather see the legacy of the Lass go to a publican who would keep the live music going.”

Although these problems will soon be behind him, he doesn’t want to see Newcastle’s live music scene go the way of Sydney’s — which has been suffocated by noise complaints and red tape.

Asked what would happen if there was a flood of noise complaints, he said: “I think you will find if that happens the hotel will probably have to be gentrified and that would change its dynamics.

“You would have your coffee shops in instead of bands.”

The rising skyline of Newcastle. Picture: Peter Lorimer
The rising skyline of Newcastle. Picture: Peter Lorimer

Despite his concerns about the future of the business he describes as the “cradle of Newcastle original music”, he is happy to see Newcastle redeveloped.

“For too long Newcastle has deteriorated under the watch of various governments,” he said.

“It was time for a change. The development just needs to be done well.”

Since 2012 Newcastle has added 1920 apartments. Outside of Sydney, only Wollongong has added more apartments (2805) in that time.

Newcastle has witnessed a 45 per cent increase in total dwellings built, when comparing 2012-15 with 2015-18.

Much of this growth has been in the Newcastle CBD.

Newcastle Lord Mayor Nuatali Nelmes said “Newcastle’s revitalisation has been a collaboration process with partnerships between all levels of government and private investment”.

“Catalyst projects, like The University of Newcastle’s City campus and light rail project, has transformed the urban core,” she sad.

“This renewal is linked to the City of Newcastle’s highly accessible 6km Bathers Way coastal shared pathway connecting the City and working harbour to our stunning beaches, in turn prompting significant construction of residential apartments.”

A bird’s eye view of Newcastle. Picture: Google Earth
A bird’s eye view of Newcastle. Picture: Google Earth

Ms Nelmes also addressed the parking concerns which have plagued the city.

Problems have been caused by an increase in the CBD population, the new light rail swallowing spaces and parking lots being removed.

She said as the Newcastle CBD moves towards the City’s West End, all development approvals continue to have provisions for onsite parking.

“Council continues to encourage private investors to provide adequate parking provisions and we’ve also introduced a commuter park and ride service from nearby Broadmeadow to free-up parking in the city,” she said.

“The service has provided a stress-free commute for more than 30,000 passengers since beginning in November 2017, removing a total of 25,000 cars from roads in the morning and afternoon to ease congestion and free up car spaces for shoppers in the CBD.”

NELSON BAY

The north coast town of Nelson Bay has been forced to deal with a very different problem to Sydney’s: nobody wants to build an apartment block there.

Apart from a Coles that was turned into a Woolworths, the holiday destination has not seen any apartment developments since 2006.

To get things moving, three months ago Port Stephens Council increased height limits in outer areas of Nelson Bay from five to eight and, in one spot, 12 storeys.

This has raised the ire of local pressure groups, who don’t want to see the area change.

Port Stephens Mayor Ryan Palmer said they would like to see more people living in Nelson Bay.

“We want apartments that people are happy to live in, not just to go on holiday to,” he told The Sunday Telegraph.

“We also want commercial buildings that are both open to the street and aesthetically pleasing.”

No one wants to build unit blocks in Nelson Bay. Picture: Destination NSW
No one wants to build unit blocks in Nelson Bay. Picture: Destination NSW

In Nelson Bay 41 per cent of homes are unoccupied during winter, compared to 10 per cent in NSW, reflecting the area’s reliance on summer tourism.

The area has an above average proportion of semi-detached homes and townhouses, but a below average proportion of apartments, according to Census Data.

Bruce MacKenzie, former Port Stephens mayor and current property developer, said the council has been weakened by community groups and decided to limit the Nelson Bay CBD to five storeys.

“It is not economical. The local pressure group is a very, very small portion of the population who jumped up and down and got their way,” he said.

“In the correct areas you could have 10-12 storeys. Even 15 storeys.

“It is never going to be the Gold Coast here.”

But while Mr MacKenzie believes the council has squibbed it, local resident Nigel Waters says the council has sold out to developers.

He heads the Tomaree Ratepayers and Residents Association, a group of homeowners keen to see the area remain the same.

“The last minute amendment moved by a local councillor — to retain the five storey limit in the core but allow eight storeys in most of the rest — was adopted in haste,” he said.

“This was a badly thought through compromise which didn’t even have time to get planners’ advice.

“We intend to challenge the planning proposal next year to change the Local Environment Plan to implement the revised (five and eight storeys) strategy as still inconsistent with the objectives and contrary to clearly expressed public views.”

SOUTH COAST

A road upgrade between Nowra and Sydney is driving development and allowing many families to escape the rat race by moving south.

Added with hordes of retiring baby boomers moving south and the expansion of HMAS Albatross Navy base, the south coast is enjoying a housing boom.

Since 2012 Roads and Maritime Services has been upgrading the Princes Highway on the south coast, with the Berry bypass now complete.

That upgrade has already trimmed 15 minutes off the one-hour commute between Nowra and Wollongong.

When the Albion Park bypass is completed in 2022, it will mean commuters will not hit a traffic light between Bomaderry (near Nowra) and Sydney.

Lots of development is happening around Nowra.
Lots of development is happening around Nowra.

These improvements have supercharged the sale of land around Worrigee, Moss Vale Rd South, South Nowra and West Nowra.

“Shoalhaven is being seen as both an affordable investment but also a permanent housing option for those who have been squeezed out of the Sydney and Wollongong housing markets,” Shoalhaven Council strategic planning manager Gordon Clark said.

“In Nowra-Bomaderry you can get three-bedroom home on about 750sq m for about $400,000.

“While that is expensive by local standards, that is still very affordable compared to Sydney.”

Shoalhaven has had a 191 per cent increase in total dwellings built, when comparing 2012-15 with 2015-18.

This is the biggest percentage increase in NSW outside of Sydney. Less than 30 per cent of all new dwellings are apartments, compared to Sydney, where 80 per cent of new dwellings are apartments.

The growth of Sydney’s second airport at Badgerys Creek is also getting people thinking about moving to the south coast.

Shoalhaven independent councillor Andrew Guile said his area of Berry has many people commuting to Sydney.

“It is about an hour and 35 minutes from Berry to Hurstville,” he said.

“While people might not do that every day, they can do it three days a week.

“With Badgerys Creek Creek coming online, for many people that is almost-commutable.”

Another factor driving growth is retiring baby boomers who are permanently moving into what was once their south coast holiday home.

Coupled with the expansion of HMAS Albatross naval base — and the thousands of jobs it creates both inside and outside the Jervis Bay region — and you’ve got an area which has enjoyed 1.5 per cent population growth every year.

“The investment in HMAS Albatross runs into the billions,” Shoalhaven councillor John Wells said.

“Not only is there the jobs, but the Navy buys up a lot of the housing for their members and finds temporary accommodation for them as well.

“The Quest apartments at Nowra, for example, went from 0-90 per cent occupancy almost overnight when the expansion of the naval base.”

The Australian Navy failed to respond to requests for comment.

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Original URL: https://www.dailytelegraph.com.au/news/nsw/regional-development-more-apartments-built-in-newcastle/news-story/3378fad6995b52cedcd5321d6b76af48