Chinese developer Golden Horse is planning to turn a former industrial estate in Sydney into a sprawling $1 billion megasite, with up to 1630 apartments.

After optioning the site about nine months ago from Goodman Group, Golden Horse's Australian arm GH Australia has finally lodged a stage one development application, putting the cost of works at $637 million.

Details of the transaction and Golden Horse's plans for the site, known as the Ashmore Estate, have been shrouded in secrecy until now. The Australian Financial Review revealed in 2014 that the acquisition was valued at $380 million. However, it is understood the off-market deal, brokered by Michael Crombie of Colliers International, is not finalised yet.

Golden Horse is betting on a strong Sydney housing market. AFR

Located in Erskineville, the site forms part of the Ashmore precinct, which is one of Sydney's biggest urban development projects. The City of Sydney Council says Ashmore will become a new residential neighbourhood with 6000 residents. Development, which includes new streets and public areas, will be staged over the next 10 years.

Documents lodged with the council show Golden Horse has proposed nine blocks ranging in height for the seven-hectare site. The plans include a supermarket, specialty retail, a childcare centre and a new public domain with a 7400-square-metre open space. If granted bonus gross floor area it has proposed 1630 units but that number could come down to 1477 new dwellings.