On Saturday, Domain Group’s house price report recorded a 3 per cent drop in Orange’s median house price, to $338,000.

The group’s senior economist Andrew Wilson said there was a negative mindset in Orange due to impending job losses at Electrolux and Cadia Valley Operations.

However, council planning has allowed for about 1839 future lots - the Shiralee masterplan would deliver about 1765 lots, about 46 lots would come from the Phillip Street subdivision, and the proposed Daydawn Place masterplan, to be considered at a council meeting tonight, would provide another 28.

In addition, 68 dwellings are expected once the former Orange Base Hospital is redeveloped.

Asked how council felt about the level of housing supply given the fall in prices, sustainability committee chair and councillor Jeff Whitton said the council had a responsibility to plan for the next 25 years.

“If we watched the value of our houses each day, some days we would be very happy, some days we would be very upset,” he said.

“We have to have it moving along otherwise in five years’ time, the market could bounce back and there will be demand for new blocks and we won’t have them there to supply.”

Cr Whitton said councillors would speak up if concerns arose about the hospital redevelopment, but he had confidence in the investment.

“If you look at houses selling between Byng Street and Kite Street, they are bringing very high prices, between the $900,000 and $1 million mark - people want to be close to the CBD.”

“[Property development] has been successful for our neighbours - Dubbo has long been in the game and it’s been quite lucrative for them.”

A LOSS of rural character and flooding concerns have dominated public submissions about a proposed subdivision in Daydawn Place.

Councillors will decide tonight whether to approve a development control plan for Daydawn Place, which would provide an extra 28 lots on top of the existing 10.

The proposed 2500 square metre minimum lot size was a common concern, with some residents believing the 4000 square metre minimum at the neighbouring Girrahween Place subdivision was an appropriate benchmark.

A report to councillors did not accept the 2500 square metre minimum would destroy the area’s rural character.

“Such lots are four to five times the size of many urban lots and clearly have the potential for a house surrounded by generous landscaping,” it said.

Residents were also concerned about stormwater runoff, which has caused erosion on two properties and damaged a third, saying the plan did not include flow paths and some blocks would be flooded in heavy rain.

However the report said the issue would be dealt with once development applications were lodged. 

Four residents asked for additional lots on their land, but only two were granted - one was refused due to the  hilly position, and another was knocked back to limit exposure to the Northern Distributor Road.

The draft plan was placed on public exhibition in January and some changes have been made, including changing the road structure to limit erosion and limiting metal panel fencing.