The big car park at Honeysuckle is about to be turned into apartments, making it even harder for drivers to find a park in Newcastle's CBD.
Fencing will go up in early April, allowing construction to begin on Doma's Lume development.
"The temporary carpark will close and we'll start to see some more apartments, retail and public space being delivered over the next 18 months to two years," HDC chief executive Michael Cassel said.
The $53 million project features three buildings ranging from two to seven storeys, with 154 residential units and 226 square metres of commercial/retail space.
The apartments sold out in a matter of days after hitting the market in October.