The Sunshine Coast Council in Australia has rejected a proposal by Japanese developers Sekisui House for a $1bn five-star hotel and serviced apartments complex at Yaroomba, near Coolum.

Planned to be built on the land between David Low Way and the beach, the company intended to construct over 2200 residential apartments, 250 hotel rooms as well as 150 serviced apartments in a ten-storey development.

After arguing the case for two years, Sekisui submitted concept drawings to the council early in 2015, which did not approve the proposal and said that it considered on balance, the social and environmental impacts that are associated with it.

"Changing the scheme in the manner proposed would have impacts on character and identity in the area."

The reasons for not approving the development included the incompatibility of the proposed amendment with the existing character of the local area.

Sunshine Coast Council further said that changing the scheme in the manner proposed would have impacts on character and identity in the area, in addition to compromising the principles established in the Strategic Framework of the Sunshine Coast Planning Scheme 2014.

Sunshine Coast mayor Mark Jamieson said it was not considered appropriate to propose an amendment to the new planning scheme. This is based on the material submitted and the range of other considerations that were taken into account by the council.

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"The council is moving ahead with our new city centre at Maroochydore, which will deliver more than 10,000 jobs into the region over the life of the project, and billions in new investment."

The four-storey area under the Sunshine Coast’s planning scheme, Yaroomba was not zoned for 2200 residential apartments, brisbanetimes reported.

The Sunshine Coast Council met to debate whether the planning scheme, which was approved in May 2014, should change to let the proposal move forward.