A Wellington City Councillor says there'll be some disappointment from developers and mana whenua about the now ditched Shelly Bay development.

The land's been sold to Sir Peter Jackson and his wife Dame Fran Walsh, who intend to return it to its natural state.

Many protested the development while others backed it, saying the city needs more housing.

Councillor Nikau Wi Neera told Heather du Plessis Allan that they're still liaising with the office of the new owners about future plans.

He says they've indicated it'll have a more recreational focus than the proposed residential focus, but it's a chance to explore other opportunities for the space.

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