Lend Lease has secured approval from the New South Wales Department of Planning and Infrastructure in Australia for its concept plans for the A$709m ($645m) revitalisation of Haymarket, in Sydney.
The project is a key part of the new Sydney International Convention, Exhibition and Entertainment Precinct (SICEEP).
Lend Lease proposes developing about 150,000m² of residential floor space, with the capacity to house an estimated 1,360 new dwellings and 422 student units.
Plans also include 50,000m² of space for commercial or retail use, a major pedestrian boulevard, new streets and lanes to improve access.
The new neighbourhood will be located between Chinatown and Darling Harbour and will sit partly on the existing entertainment centre site.
NSW Planning and Infrastructure Minister Brad Hazzard said Haymarket will serve as a new inner-city residential and business community with new public spaces for the broader community.
"This new vibrant neighbourhood will help meet local housing demand for residents and students wanting the best of urban life and also be enjoyed by visitors attending conventions in Darling Harbour, who want a Sydney experience," Hazzard said.
"More than 2,000 construction jobs and more than 2,000 ongoing jobs will result in this precinct."
Lend Lease has also submitted development applications for individual student accommodation, residential and commercial office projects within the new neighbourhood. The company must secure approval for its development before starting construction.