Lake Mac Development Approvals Top $1 Billion Despite National Slowdown

newy.com.au – Lake Macquarie City Council has approved more than $1 billion worth of development in the past financial year, defying a broader national downturn in construction activity. The 2024–2025 financial year saw 1,824 development applications and modifications approved across the city, with Morisset leading in total value at $49.6 million.

Despite the overall number and value of applications falling to their lowest levels since 2019, Council says the city remains one of the most active local government areas in New South Wales, second only to the Central Coast in total application volumes. Council Director of Development, Planning and Regulation David Antcliff attributed the continued strength to streamlined assessment processes and a focus on sustainable growth. “Approving high-quality, sustainable commercial and residential development has helped Lake Macquarie transition rapidly from an economy based around mining and traditional industry to one focusing on services, health, tourism and innovation,” Mr Antcliff said.

South-western suburbs continued to attract the most investment, with Wyee Point ($31.4 million), Wyee ($30.7 million) and Cooranbong ($27.6 million) also ranking in the top ten. Mayor Adam Shultz said easing interest rates and new incentives, including increased support for affordable housing projects, offered reason for confidence. “We will continue to work hard, streamline our processes and do what we can to attract further quality development for the good of the city,” he said.

The approvals bring Lake Macquarie’s total development value since 2019 to more than $8 billion. Much of this growth is being guided by long-term planning strategies, including the draft North West Lake Macquarie Catalyst Area Place Strategy, which sets out a 20-year vision for suburbs like Boolaroo, Speers Point and Glendale. That plan anticipates over 13,000 new residents, 5,200 homes and 3,000 jobs, potentially adding $6.3 billion annually to the local economy.

Infrastructure planning has also been central to managing the city’s expansion. Developers are required to contribute to local services through statutory development levies under Sections 7.11 and 7.12 of the Environmental Planning and Assessment Act. In addition, voluntary planning agreements (VPAs) have delivered major public benefits. One such agreement in North Cooranbong has committed more than $30 million toward community and recreational infrastructure.

Meanwhile, strategic precincts like Cockle Creek and Morisset are being shaped by tailored planning frameworks. A revised concept for the Cedar Mill entertainment precinct in Morisset includes a new 10,000-seat indoor arena, with supporting road upgrades now underway. In Gateshead, Lake Macquarie Private Hospital is set for a major expansion, with state-level approvals secured for two options—either a nine-storey wing that would lift capacity to about 301 beds, or a six-storey addition that would bring capacity to roughly 227 beds.

Council is also pushing for more diverse housing supply, with recent changes to the Local Environmental Plan encouraging medium-density developments in established suburbs. A tiny-homes pilot in Belmont North, set to begin late 2025, is among several initiatives aimed at easing pressure in a tight rental market, where vacancy rates remain around 1 percent.

Lake Macquarie’s performance may also position it to benefit from state programs that reward fast and efficient planning. With a median DA processing time of 23 days, the city meets benchmarks under the NSW Government’s Faster Assessments program, potentially unlocking additional infrastructure grants.

The Council’s online DA tracker and the NSW Planning Portal remain key tools for community members to stay informed, provide feedback and view application outcomes.