The $5.8 million development at 4 Highfields Circuit will have about 80 units, with a 30 per cent mix of affordable housing, and 82 parking spaces.

The Northern Joint Regional Planning Panel conditionally approved the development application after hearing from concerned Kulai Place resident Sandra Treeves and representatives in favour of the development.

Mrs Treeves told the panel she was concerned about a number of issues such as loss of property values and traffic but probably the most concerning of all was the over-riding of restrictions like the height restriction.

"There doesn't seem just reason to put it all on one block," she said.

Architect Nigel Swift said the area was in transition.

"We do believe we are providing a good product to the area, whether that is university or hospital related, it's a key spot to both of those facilities," Mr Swift said. Panel chairman Garry West acknowledged the points raised by Mrs Treeves. He said the building would present as two storeys from Highfields Circuit and three storeys at the back, which was acceptable.

"The other big issue is clearly the traffic," he said. Mr West said much of the traffic was associated with what he called a construction boom and he understood residents' frustration.

The panel acknowledged the traffic impact was cumulative.

"I believe it [traffic] is a broader issues that council has to address and should address," Mr West said.

Mrs Treeves told the Port News after the meeting that the situation was simply not fair.

"We have a different zoning so we can't sell out and do the same thing," she said. "We are not on an equal playing field."

She said the three storey height would overlook their properties.

"They [the panel] talked about two storeys at the front but we are at the back," she said. The residential flat building is the latest development to get the green light in Highfields Circuit near Port Macquarie Base Hospital.

The circuit is becoming increasingly busy as houses are replaced with medical-related developments.

The Port Macquarie-Hastings Council assessment report said the development would create an overall positive economic impact through expansion of the education/medical precinct through the provision of associated accommodation facilities.