Actually the apartments are being refused not for being an over-development, nor mainly due to overlooking. They were recommended due to the flooding risk not being sufficiently mitigated and that the design was not modern enough. The planners thought the design would be too much of a Victorian pastiche and they would prefer a more contemporary design, similar to that at the McCarthy and Stone development on Gloddaeth Street.
The land is earmarked for housing in the plan, so that's not an issue.