The Stronach Property development proposed 161 units in three buildings plus 11 townhouses. The plan received resident backlash for a perceived "over-development" of the site.

The Hunter and Central Coast planning panel said a level must be removed from one building and more tree canopy and planting installed, but was satisfied concerns were addressed in conditions of consent.

But Friends of King Edward Park spokesperson John Lewer said the community sourced expert reports that said the proposal should have been rejected.

Dr Lewer said said there were extensive concerns over the development's impacts on the "iconic heritage values" of King Edward and Arcadia parks caused by the height and scale of the three residential buildings.

He noted the application did not comply with site-specific planning controls and required extensive grouting of old mine workings.

Traffic congestion and privacy impacts on nearby Newcastle East Primary School were among other concerns.

Dr Lewer said his association would be "reviewing their options" for further action. The group previously challenged the development application in the Land and Environment Court, which Stronach later withdrew.

"So that's food for thought," Dr Lewer said.

Stronach was not available for comment.

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