A $1 billion plan to transform Newcastle West’s Marketown West Shopping Centre has been formally lodged with the NSW Government and, if approved, it will change the skyline of the CBD.
Region Group, the owner of Marketown West Shopping Centre on Parry Street, recently submitted a scoping report to the Department of Planning, Housing and Infrastructure seeking approval to redevelop the 24,478-square-metre site.
The concept plan, designed by architecture and Urban Design firm Turner, would deliver approximately 1,400 apartments across six residential towers.
The tallest would reach about 90 metres, which is about 29 storeys.
Below them, a revitalised retail centre would include food and beverage tenancies, a public plaza facing King Street, and a pedestrian bridge connecting to the existing Marketown East centre across Steel Street.
The single-storey shopping centre on the site has traded since 1978, with Coles and Officeworks being its anchor tenants.
The scoping report, prepared by planning consultancy Urbis, describes it as “dated in form and format” with the site “underdeveloped” given its location at the western gateway of the Newcastle CBD.
To build what is proposed, Region Group needs the planning rules to change.
The site is currently capped at 35 metres in height and a floor space ratio of 4:1 under the Newcastle Local Environmental Plan 2012.
The company is seeking to lift that to approximately 90 metres and a floor space ratio of 6.25:1.
Four developments between 45 and 90 metres tall have already been approved immediately north of the site.
And, it would be delivered in three stages over seven-to-10 years.
Stage 1 listed at an estimated cost of $50 million and involves two residential towers with about 400 apartments and 950 car spaces.
It is seeking detailed approval alongside the broader concept.
It’s understood Region Group has been in discussions with City of Newcastle officers for the past 24 months.
The Urban Design Review Panel gave in-principle support to the proposed height increases in July 2024, recommending the tallest towers be placed toward the north-western corner of the site.
A shadow analysis is being prepared to accompany the formal application.
Transport for NSW has called for a detailed traffic and parking assessment.
Subsidence Advisory NSW noted the site sits within a mine subsidence district, requiring geotechnical investigation.
It’s also flood-prone land, though the report notes that risk can be managed at the development application stage.
Hunter Water raised no objection.
The site falls within the Newcastle City Centre Heritage Conservation Area and adjoins the Former Gasworks Office, a local heritage item on the corner of Steel and King streets.
A preliminary archaeological assessment found no protected heritage items within the site itself.
The completed development is expected to house around 3,000 residents and support 420 ongoing jobs alongside 400 construction roles.
Affordable housing contributions are proposed in line with council policy.
Community engagement will include public information sessions, neighbour notification, stakeholder briefings and an online information hub.
Formal submissions will open when the application goes on public exhibition as part of the environmental impact statement process.
Region Group’s pre-development application was lodged on 21 May 2026 and can be tracked on the NSW Planning Portal.
For more news stories:
- Family hopes $1m reward motivates someone to speak up about Susan Kay’s murder
- Muswellbrook mayor slams government funding snub
- Newcastle Basketball submits modified plan for Hunter Indoor Sports Centre
Get all the latest Newcastle news, sport, real estate, entertainment, lifestyle and more delivered straight to your inbox with the Newcastle Weekly Daily Newsletter. Sign up here.
