The $54.5 million proposal is a 20-storey tower comprising a four level podium for commercial spaces and car parking, with 16 storeys of residential apartments above.

The almost 65-metre building, called WaterVue, would provide 106 homes and four commercial tenancies with 172 car spaces accessed off Steel Street.

Plans lodged with Newcastle council show the project is being managed by Bloc, who did not respond to requests for comment. The applicant is listed as Next Level Seven Pty Ltd, however the Herald was unable to make contact with the company.

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The site has had an unlucky run. There have been numerous plans announced for the block since the Empire Hotel was demolished in 2011, but none were able to get off the ground.

Several affordable housing projects were planned for the prominent corner over the years. The abandoned former building on the site was also a haven for illegal activity before it was razed.

The last proposal for the site - the 15-storey Onyx apartments - was abandoned by Miller Property Group in 2019 due to slow sales.

But that was before the current housing boom that was ignited at the start of COVID-19 in 2020.

When the Onyx plans were shelved, unit prices had dropped eight per cent in Newcastle.

The Herald reported last week that unit prices in Newcastle had dropped slightly following the rise in interest rates. But the 0.2 median price dip came after a 15.2 per cent rise over the previous 12 months.

The WaterVue development would join 1000 new homes also planned for the city's west end across four other high-rise developments. Staging plans were lodged last week for a 22-storey residential high-rise on another iconic site nearby - the former home of Musos Corner at 1 National Park Street.

While Sydney's property prices have fallen 1.5 per cent since January, Property Council Hunter regional director Anita Hugo said the strong interest in Newcastle apartments hadn't wavered so far.

"In Newcastle we're not seeing that change," Ms Hugo said.

"That doesn't mean we're not susceptible, but it's much less volatile than places like Sydney.

"We've not seen a downturn in inquiries for apartments and off-the-plan. A lot of interest is still being shown in those."

Ms Hugo said the migration from the state's capital was still driving that interest.

"It speaks to the fact people have learnt they can live and work more flexibly," she said.

Many of the new developments were also going ahead in "A-grade locations", Ms Hugo said.

"They can be close to the water and there is good social infrastructure in and around where they're living," she said.

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