The land south of A392 in Trevemper will see Cornwall and West Devon construct 187 quality new homes for local families, after permission was granted this week by Cornwall Council.
In addition, the region will allocate 56 properties to a local housing association provider, which will help address Cornwall's pressing housing requirements.
The proposed development comprises homes of one, two and three storeys, and a wide range of properties from one-bed apartments to five-bed homes will be built.
Persimmon's proposals will also deliver significant public open space, play area, infrastructure improvements and a new 3m wide strategic footpath/cycle way following a request from local people Cornwall Council.
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The region will also contribute over £565,000 to Cornwall Council through the Community Infrastructure Levy for local improvements.
Commenting, Robbie Brown, Technical Director for Persimmon Homes Cornwall and West Devon, said: "We are delighted to have secured planning permission for our new Newquay development.
"The application demonstrated our continued commitment to the principles of sustainable, high-quality development, delivering a wide choice of homes to meet local needs.
"Through the construction of 187 quality new homes for local people, this site will deliver substantial social and economic benefits, playing an important role in the growth and aspirations of Newquay as one of Cornwall's key settlements.
"As part of our wider commitment to the local community, we will transfer 56 homes to a local housing association partner, which will help tackle Cornwall's pressing housing demands. We have also listened to the request for a new strategic footpath and cycle way, and we're delighted to have gone above and beyond on this asset for the local community.
"I would like to thank Cornwall Council for their cooperation and diligence during the application process as all parties worked positively to deliver a high-quality scheme, which helps address the local housing need and provides the opportunity for home ownership to more local people."
