newy.com.au – A proposal to allow more medical services, commercial development and medium density housing around Lake Macquarie Private Hospital has opened for public comment.

The Gateshead Medical Precinct Planning Proposal and an accompanying area plan would guide future development across 34 hectares, responding to demand from the region’s growing and ageing population.

Parts of the precinct would change from medium density residential to local centre zoning, allowing a broader range of health, medical and supporting commercial services. A strip along the western boundary would move from low to medium density residential zoning to allow more housing options for residents and workers.

Building height limits would also change across the precinct.

“The planning proposal maps out the kind of development the precinct can accommodate, but there is no obligation for existing residents or businesses to do anything to their properties that they don’t want,” Lake Macquarie Mayor Adam Shultz said.

The precinct is largely bounded by Plane Street to the west, land just beyond Oxford Street to the north, Willow Road to the south and the Pacific Highway to the east. It also includes The Crescent and Schroder Avenue on the eastern side of the highway.

An economic demand analysis prepared to inform the proposal found that, without additional supply, the region could face a shortfall of almost 600 medical specialists by 2052. They include cardiologists, anaesthetists, psychiatrists and obstetricians.

The analysis also identified potential shortages of more than 700 allied health professionals and more than 400 GPs across the local catchment by 2052.

Mr Shultz said the precinct would serve an area extending from Woy Woy to Taree, and west to Merriwa and Murrurundi.

“This is about planning ahead for the future health needs of our community and the wider Hunter Region.”

The proposed precinct changes follow the NSW Government’s approval of a major expansion of Lake Macquarie Private Hospital in May 2025. That approved project includes a new hospital tower, expanded emergency and critical care services, and improvements to parking and access.

Residents can view the draft planning proposal and supporting documents and make a submission until 9 November 2026.

The project team will hold a drop in information session at Windale Hub, bilyabayi, on Wednesday 21 October from 10am to 2pm.

A second session will be held at Wiripaang Public School Hall in Gateshead on Wednesday 28 October from 3.30pm to 6pm, accessed through the Hughes Street car park.

32473_Lake Macquarie Private Hospital sits at the heart of the Gateshead Medical Precinct Planning Proposal