City of Newcastle seeks partner for landmark affordable housing project

A multi-storey affordable housing apartment building will be developed on a key Hunter Street site as City of Newcastle moves forward with a landmark mixed-use project.

The strategically positioned site, known as Rail Bridge Row, sits as a junction between Hunter Street and the Foreshore. 

The project marks the closing of a chapter in Newcastle’s history with the parcel of land the final piece of the former heavy rail corridor to be redeveloped.

The development will also be the second affordable project on the old rail line following the construction of 30 units on Merewether Street in 2020 by Evolve Housing. 

Council voted on Tuesday night to invite expressions of interest (EOI) from community housing providers to work with City of Newcastle on the project, which will include multiple levels of units above a ground floor commercial / retail development.

The partnership would be the first of its kind in the Hunter and could pave the way for similar developments in the future at other City of Newcastle sites.

Chairperson of City of Newcastle's Asset Advisory Committee, Cr Declan Clausen, said the project could help ease the affordable housing shortage now and into the future.

"A growing population, cost-of-living crisis and shortage of housing including dwellings affordable to those on lower incomes, is exacerbating the stress being felt in households across Newcastle," Cr Clausen said.

"The Rail Bridge Row project is the first time Council has utilised its own land to help address the housing crisis. As an elected council, we are pulling every lever available to us to increase the supply of social and affordable housing in our city. 

"By partnering with a community housing provider to deliver this project, we are creating a framework that could potentially be replicated across other City of Newcastle sites."

The EOI will be launched early next year to identify select applicants, who will then be asked to prepare a proposal for the project.

A business case will be presented for Council approval before the preferred community housing provider is engaged.

City of Newcastle recently completed detailed site investigations for the early works and approvals needed to support future development on the site.

The 4,125 sqm lot at 280 Hunter Street stretches from Brown Street to near the intersection of Darby and Hunter Street and is opposite the Crown Street light rail stop. It was purchased by City of Newcastle from Hunter and Central Coast Development Corporation in 2020.

In addition to the mixed-use development, the site could also facilitate the delivery of an important east-west commuter cycleway connection, strengthening Newcastle's cycling infrastructure while enhancing the sustainability and liveability of the city.