Seven two-bedroom single-storey units will be built next to a backpackers in Judea.
BGT Developments' resource consent application to build seven independent units and subdivide around the development to create nine freehold titles at 39 Bell St has been approved.
The site includes the Bell Lodge Motel and Backpacker accommodation and an existing residential dwelling, and a 72m-long right of way.
All but two of the 16 submissions on the development were opposed to the idea.
Transport, access and parking, visual amenity and character, construction, noise and infrastructure were some of the key issues raised at a council hearing in May.
However, commissioner Gavin Kemble has since granted both the land use and subdivision consents - subject to conditions.
Those conditions included no increase in the size of the units, no alteration to the external structure and a maximum height of 5.335 metres for each unit.
Work to reconfigure the Bell Lodge carpark must also be undertaken to provide no less than 23 marked spaces.
A 1.8m-high solid timber fence is to be constructed along the western boundaries
of the proposed units, as well as along common boundaries adjoining outdoor living areas.
Property developer Brian Gillett believed the proposed units brought a more affordable housing product to the market.
"I think it is great. Ultimately I wanted to bring something the market is going to want," he said.
The medium-density housing was an appropriate fit for its location.
"You don't have to always build upwards. You can achieve it with smaller sections."
The two-bedroom units cost in the low $400,000 and were catered to people aged over 50, a couple or single parents, Gillett said.
"The biggest thing is that it is freehold," he said. "It allows people to enter the market within the city boundaries."
Most of the interest so far had come from locals, with only some Auckland buyers.
Gillett hoped construction would start in the next three months and be completed within 12 to 16 weeks once building began.
Bell St resident Mary Parker said she felt residents had been listened to but felt "a little disappointed" with the outcome.
Fellow resident Mariette Steeghs said she understood the city needed smaller dwellings and accepted residents had their concerns heard.
"But it is a shame we are losing that much greenery to fit in that many homes," she said.
Bell Lodge Motel and Backpackers was also contacted for comment.
• Seven single-storey dwellings
• Floor areas of 53.45sq m
• Two bedrooms
• Open-plan living areas
• Access to 24.90sq m outdoor courtyards
• One on-site carpark
• Four extra visitor spaces in the adjacent carpark used by Bell Lodge Motel and Backpackers
• Existing carpark to be reconfigured to provide 23 spaces, including four reserved for visitors of the units