Stockland confirmed it withdrew the development application lodged at Shoalhaven City Council last week.

The office was proposed for 32 East Street on the southwestern corner of the Stockland Nowra Shopping Centre car park.

Morton Parade residents were concerned the building would cause increased traffic on the already busy street, making it difficult for elderly residents to access their homes.

Related: Fears a proposed Centrelink office could cause traffic chaos on Morton Parade

Ian James, who has lived on the street for over 20 years, fiercely advocated against the proposal, and said those who live on the street are "over the moon" about the applicant's withdrawal.

"We are all totally elated," he said. "It's been a joint effort."

"When I told the neighbours down the bottom of the street, they were so relieved.

"A woman in her 90s who would have been closest to the new building is over the moon because she was weighing up whether to sell her house, but now she doesn't have to."

A spokesperson for Shoalhaven City Council said the DA was withdrawn "after significant engineering issues originally identified by council were not able to be satisfactorily resolved by the applicant".

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At this stage, the applicant's intentions concerning a new Centrelink building and site for the future could not be confirmed.

Mr James spent the last month collecting the signatures of everyone who lives on Morton Parade in opposition of the development.

He said he would not welcome any type of development that is as close as 200 metres away from their homes and that the street, the majority of which has no curb and guttering, is already too busy.

"There just shouldn't be any development there full stop," he said.

"There is no parking here, even on the weekends. During peak periods, you have four wheel drives parked up on the grass."

The community also raised concerns that the new Centrelink building, which was set to replace the current office in the Nowra CBD, would be harder to access for those who use its services.

Gilmore MP Fiona Phillips said keeping a Centrelink building close to the CBD's bus service is essential for access and welcomes the withdrawal of the application.

"There absolutely needs to be good access to the Nowra CBD and the Nowra bus terminals," said Ms Phillips.

"I welcome upgraded buildings, but they need to be accessible.

"I think they (the applicants) need to go back to the drawing board and consult properly with the community."

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