LJ Hooker Nelson Bay managing director Jason Brennan believed the move to allow up to 12-storey buildings in the Bay CBD would yield greater opportunities for first home buyers, investors and the community at large while Nelson Bay Real Estate principal Heath Jones predicted the decision would negatively impact future commercial development.

Mr Brennan, in his 25^th year as an agent, said the Port's property market across the board was looking "pretty positive" but highlighted that there had been an increase in the demand for apartments and units in the past year as first home buyers, investors and retirees sought "value for money" homes and more people moved out of cities for regional living.

"The trend right across the country is that high rises are the way to go," he said. "It will be a slow process - new developments certainly won't go up overnight. But there is a lot of positives that come from new development, which Nelson Bay hasn't had in a long time.

"Developer contributions will improve infrastructure, roads, footpaths, streetscapes and the overall livability of the Bay. Creating more development will also bring more people to the Bay, which helps retail and local business.

"Gone are the days where a developer builds a concrete block and expects it to sell. Development is now greener and architecturally friendly. I think there's an opportunity to give the Bay a real kick along and make it even more attractive for holidaymakers and locals.

"But it's a fine line between making money and being right for the area. The key is not losing our seaside village identity."

The council said increasing building heights in Nelson Bay was the most sustainable way to accommodate the growth and density needed to rejuvenate the town centre, rather than allowing urban sprawl to creep into the peninsula's bushland.

"In order to thrive, Nelson Bay needs a larger permanent population and the best way to achieve this is by creating a walkable, liveable town centre. Increasing heights will make new developments and investments in the town centre feasible, which will fund public domain improvements and other community facilities," states a council document addressing questions about the building height increase.

Mr Jones, a sixth generation Port resident, believed Little Beach rather than the Nelson Bay CBD was better suited to high rise development and that the council's decision would make it harder for commercial development to progress in the town centre.

"Progress is great but I think they've chosen the wrong spot for it," he said. "Because you can now go higher, some of the sites that might have been used for a nice little commercial development will depreciate to the point that it's not viable to put any shops there. There is also the concern of parking in the Bay becoming worse.

"There's definitely a market for bigger permanent living units in the Bay but I think it will probably would have worked better if it was a Little beach. There's a tonne of sites that could be build on. It's flat, so the status quo on views wouldn't have changed and every block has a walkway behind it to go down to the water. It would have created a lot more demand and development."

PRDnationwide Port Stephens managing director Bruce Gair believed the increase in building heights would attract more development and as the population density increased, create further services, jobs and opportunities in the Bay.

"I think this is a step towards a more self sustainable peninsula," Mr Gair said. "Going forward, I think developers will be looking at whether there's a demand for more high rise in Nelson Bay. It will be a demand driven approach.

"We all love Nelson Bay as it is, but there has to be progress. None of us want to be another Gold Coast. Future development will need to be done within reason."

For Port Stephens real estate listings, see the Examiner's new Real Estate View in this week's edition or visit realestateview.com.au.