The Mine Subsidence Board released a map of the area showing the strength of the ground. Newcastle station + bus layover would be a goldmine.
Let's park the conspiracy theories for a moment and look at fiscal reality.
The $10 million per hectare I quote is for land from of mine issues close to water and with water views. You might by a block with mine issues for $7 million, spend $3 million on grouting and still end up with a $10 million block you can build on without restrictions.
The land will only ever be worth more money if people starting paying twice as much for units in Newcastle. If that was to happen, the government would get the windfall, they own the land! The developer that buys it will be the one that pays the most and therefore takes the biggest risk on getting a return in 5 years when the work is finished.
I repeat my original claim, the government would not spend $460 million if the only reason was to recover the income from the sale of the land. The land is only worth about $20 million (if they sold every inch of it). Even if prices doubled, it is still less than10% of the cost of the project.