A 71-LOT housing sub-division, estimated to bring in $50 million to the Clarence Valley economy, is expected to get under way in the next six months.
It is good news for the region after a month of gloomy economic news following the massive public service job cuts announced last month.
Grafton real estate agent Robbie Seymour said rather than seeing this as a sign of a city in decline, it was a chance to acquire some under-valued property. Mr Seymour is the agent for the sale of land in Junction Hill with approval to build 71 new house blocks.
It is understood that the land was approved for development four years ago but the project stalled as other subdivisions took off around it.
Mr Seymour said potential buyers have shown interest and he believes the developers are keen to "break ground" within the next six months.
"The purchasers looked at Grafton and saw a good record of prior success with these sort of developments and that the local market was severely underrated," Mr Seymour said.
"This is exactly what Grafton needs, it will bring as much as $50 million into the local economy."
The Examiner also understands that a 1014-lot development is likely to be approved in the Junction Hill area next week.
Clarence Valley Council deputy general manager Des Schroder said the developments fell well within the council guidelines.
"The Clarence Valley actually has one of Australia's most reliable water supplies and is therefore one of the few areas that can really sustain a large increase in population," Mr Schroder said.
"We in fact have around 7000 lots in the valley with development applications pending."