Councillor Barry Lyons said he was "tickled pink" the subdivision was moving ahead.

He said development in the area had been stalled in the past by an inadequate intersection at Hills Road and the Calder Highway.

The developer has promised to upgrade the intersection for the benefit of all residents of Marong, Cr Lyons said.

He said demand for homes in Marong was high.

"There have been quite a few subdivisions out there recently and they've all filled up so it's a desirable place to live," he said.

"With the impending passing of the Marong Business Park coming up in the future it will be a great developing area and will require as much residential land as possible so I think it's really moving into the future."

Cr Rod Campbell said Marong was a growing area.

"This will be a very excellent and suited development for Marong. I want to applaud the developer on its focus upon the need for walking and cycling in the future and the provision to get people off the road and get them safely down towards the schools and preschool centres and so forth," he said.

Cr Elise Chapman said the subdivision was "timely" as all the other housing developments in Marong sold out. 

She said the development was well situated close to Malone Park and to schools.

Cr Chapman praised the developer for its plans to upgrade Salvarezza and Hills roads to allow bus access.

"The upgrade of those two main roads for future public transport is looking into the future," she said.

She moved a motion, which was passed, to direct the development's 5 per cent contribution for public open space solely to Malone Park once the council took responsibility for the park.

She said doing so would best serve the 800 to 1000 new residents of Marong that the development would bring. 

"Marong just can't keep missing out," she said.

Four objections to the development have been received from residents of neighbouring properties as well as the Marong Community Action Group.

Objectors raised concerns about increased traffic in the area, the possibility of people speeding through the neighbourhood, the change to the current rural outlook and lifestyle and a lack of facilities and services in Marong.

The lots will range in size from 612 square metres to 910 sqm.

The subdivision will be released in eight stages of between 18 and 39 lots. 

Construction is scheduled to begin within the next six months with the first blocks released mid-2016.