Councillors green lit a planning application from developer Buckland covering a new access road, removing vegetation and the planting of 11,000 trees and shrubs at Welborne.
Fareham Borough Council's planning committee considered the application after 34 letters of objection and those from the Knowle Residents Association and Wickham and Knowle parish councils.
Many were concerned about the planned levelling of what remains of 30 acres of woodland and hedgerow along Knowle Road.
But planners told the meeting that some 11,000 trees and shrubs will be planted in three other areas - equivalent to the woodland and vegetation being lost.
Councillor Ian Bastable (Con, Park Gate) said he was "happy" with the application due to the mitigation work. He said councillors were approving the removal of woodland at the meeting, and this was not done previously in 2020 when the outline application was approved.
He said: "The fact that housing will be built here and that trees will go, based on what I was told in 2020, and as I understand it, it is what we are permitting today.
"However, this particular application, I am happy with. I am at ease with these trees going because I am at ease with the mitigation plans and the excellent work going on in Welborne.
"I am happy to support the good works and house building going on at Welborne."
He also said residents knew that the character of Knowle Road was going to change. He said: "The idea that people didn't know the road was going to change is for the birds."
Councillors unanimously approved Welborne's second phase, including a temporary vehicular junction for haulage off the new Burnsall Roundabout on Knowle Road to provide access to the site.
Councillor Joanne Burton (Con, Sarisbury and Whiteley) said: "I have seen the commitment from Buckland and the investment in mature tree planting.
"Change is inevitable. You are not going to make a cake without breaking some eggs."
Plans for drainage and soil movement were included in the reserved matters application.