Councillors at Swansea Council yesterday voted to grant outline planning permission for the scheme, which involves the residential redevelopment of Swansea University's Hendrefoilan Student Village, Gower Road, Sketty, together with supporting infrastructure and open space.
Ten per cent of the homes would be affordable.
Swansea University sold the 18.20-hectare site to developers St Modwen Homes and the two parties jointly applied for the outline planning permission.
A planning report recommended approval for the application because the redevelopment would "provide an opportunity to create a significant residential development in an established landscaped setting within the existing urban settlement of Killay".
The report added that the site is "located within a sustainable location without having a detrimental impact on the local highway network" and "the application has addressed issues in respect of cultural heritage, trees and landscape, ecology, flood risk and drainage and is considered to be acceptable departure to the development plan making a significant contribution to the housing land availability within west Swansea, whilst making a modest contribution to affordable housing requirements."
A £670,000 planning obligation for the scheme would be split into £650,000 to fund a "two-class extension to Hendrefoilan Primary School" and £20,000 towards improvements to the traffic lights at the Gower Road/Wimmerfield Road junction, with both payments to be made before the occupation of the 51st home, the report said.