A record $1.8 billion worth of development, which City of Newcastle says will create about 3500 direct jobs, was approved in the city last year.
More than 1600 development applications - up from 1361 in 2020 - were lodged with City of Newcastle in 2021.
The value of development applications increased by almost 90 per cent, a figure driven by major projects such as The Store redevelopment ($118 million), former Dairy Farmers site ($100 million), and a 133-lot industrial subdivision at Black Hill ($33 million).
City of Newcastle's regulatory, planning and assessment manager Michelle Bisson said low interest rates combined with the thriving property market were behind the city's development boom.
"Newcastle is surging ahead when it comes to injecting cash into bricks and mortar, despite the pandemic, reflecting high levels of optimism amongst homeowners, investors and developers," she said.
The highest value development applications are predominantly in Newcastle West, Adamstown, Beresfield, and Merewether, however, there has also been a surge in residential development in the suburbs such as Wallsend, Fletcher and New Lambton for residential alterations, additions and single dwellings.
"The construction associated with this level of development generates approximately 3,500 direct jobs and buoys Newcastle's economy which is a positive as we come up against the ongoing impacts of COVID-19 and look to 2022 and beyond," Ms Bisson said.
Newcastle recently announced a design competition for the $100 million redevelopment of the former Spotlight and Anaconda site at 711 Hunter Street in the city's revitalised West End, meaning the pipeline of significant future development applications expected in 2022 is strong.
"Newcastle is transforming into a modern metropolitan city with significant large redevelopments in the pipeline, showing developer confidence in our city is at an all-time high," Ms Bisson said.
"Ongoing revitalisation and development is continuing to transform Newcastle, and 2022 is set to be another exciting and busy year for our city."
In addition to council-controlled developments, the final piece of land in Honeysuckle's 30-year transformation was unlocked last September.
The NSW government is seeking interest to design and redevelop the three hectare precinct dubbed Honeysuckle HQ at the western end of the precinct, which is currently used for car parking.
It is the last remaining waterfront site in the city centre.
Minister for Planning and Public Spaces Rob Stokes said the site was the "centre piece of everything we have been working towards in Newcastle".
