Sentinel Properties Limited is looking to build 13 homes and associated infrastructure on land at The Sheiling, Hatton.
The application for planning permission in principle was considered by the Buchan Area Committee on Tuesday, February 23.
The site layout and detailed house designs have not been submitted yet but the development is expected to feature three affordable homes.
A design statement said the proposed estate was also close to local facilities like the village school and the A90 Peterhead to Aberdeen road.
It said: “The application seeks planning permission in principle for residential development of the land in Hatton allocated for residential development.
“The application site is located adjacent to the previous phase of the development and there is a direct connection to Main Street and the facilities available in Hatton are all available by walking.”
Prior to the meeting the application received four objections raising concerns about over-capacity at nearby Hatton School, lack of housing demand, strain on the local Medical Practice and flooding concerns.
Cruden Community Council also objected to the proposal raising the same concerns as objectors while also noting worries over road safety and “insufficient” Scottish Water provision.
However despite these objections the application had been recommended for approval subject to conditions by council officers.
Councillor Alan Fakley said he had concerns regarding a lack of demand in the area. He added that the Community Council had put forward “good and valid” reasons for objection.
Councillor Stephen Calder initially moved a motion to refuse the application on the basis of road infrastructure but later withdrew his refusal following discussion with committee members.
The committee agreed that the authority to grant planning permission in principle be delegated to the Head of Planning and Environment Services subject to conditions. The application will return to Aberdeenshire Council at a later date seeking full planning permission.