A small 230-metre long road in the Kiama CBD is set to become a development hotspot.

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Akuna Street sits a block behind the main drag of Terralong Street, previously best known for its parking lots - which came in handy on those busy summer weekends.

But now, three separate large-scale developments are on the table for the tiny street.

The latest is a 52-unit apartment block on the corner of Akuna and Collins streets, 10 per cent of which will be affordable housing.

The development has just been classified as state significant by Planning Minis

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