The re-opening of Our Lady of Mercy Chapel on November 30 came after the developer, Nicolas Daoud, sold the site's rear portion and second stage to a local party.

He has already completed the Quest project, comprising 63 one- and two-bedroom apartments as part of the first stage, fronting Clinton Street.

But for Mr Daoud, the chapel and former Our Lady of Mercy convent's restoration was a crowning achievement.

He hosted a special service at the chapel to which Sisters of Mercy, mayor Bob Kirk, council general manager Warwick Bennett, Catholic parishioners, friends and guests of all faiths were invited.

The work has been completed in conjunction with a heritage architect.

"They're both historical buildings and we wanted to keep them as original as possible but there were some things we had to change," Mr Daoud said.

"Eighty percent of the work was done in the convent because it was badly dilapidated."

Here they replaced guttering and eves, the front door, out-of-date electricals, rebuilt gables, stripped back internal paint and repainted, refurbished floors, restored fireplace surrounds and even re-opened an arch from the old chapel on the eastern aspect into the building.

Outside, paint from two ends of the building was removed, exposing the brickwork and standing in contrast to the painted centre section.

Caretaker Peter Trama and his firm, Goulburn Outdoor Services, did much of the work.

The convent, commissioned in 1859 and completed in 1862 for the Sisters of Mercy, is now the oldest on the site. Other buildings were demolished to make way for the property's redevelopment.

At the 1891 chapel, which has been unused for many years, broken roof tiles and aged trusses were replaced, the interior painted and refurbished, including the distinctive parquetry timber floor.

Mr Trama said the "beautifully crafted" stained glass windows were carefully repaired and cleaned. The altar, wooden Stations of the Cross and religious statues were also spruced up and the original cedar features, originally brought from Ireland, enhanced.

"The Sisters of Mercy have also done a lot to give back to this project because they could see Nic was so passionate about it," Mr Trama said.

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The Sisters donated a wooden crucifix they took from the chapel when they left, a bible stand and most of the altar ornaments.

Mr Daoud said the restoration was a great source of pride.

"We want the people of Goulburn who have a memory of the place to come back for services and see these buildings as they were originally," Mr Daoud said.

"It will be for all denominations...The whole intent is not to take away from the holiness of the place."

The Wollongong developer said both structures would remain under his ownership at least until he knew "they were in safe hands."

He has no immediate plans to sell them but says if they are, a covenant will preserve the chapel's ongoing use. The convent could in time be used for another purpose.

Mr Daoud said there was an "overflow of emotion" at the recent service from the Sisters of Mercy and many others. One woman travelled five hours especially for the occasion.

"It looks good and I feel like we've done a good job," he said.

The Quest Apartments' construction attracted controversy after they encroached on the former convent, breaching consent conditions.

But due to the advanced state of building works, the council did not take compliance action.

Instead, councillors agreed to a compromise requiring landscaping, changes to building material and colours and paving along Clinton Street.

Mr Daoud said despite the criticism, he hoped developers would always be encouraged to come to Goulburn.

At the service, Cr Kirk praised the overall project as "a marvelous outcome".

"I would be surprised if this was able to be pulled off anywhere else," he said.

"There has been a lot of noise and criticism on the project (but) when you enter town through the south, you will see a modern and welcoming structure that says welcome to Goulburn."

Mr Daoud said there had been a positive initial response to apartment purchases and while some contracts had been issued, their sale would take time.

Meantime, he told the Goulburn Post he had offloaded the site's rear portion, off Bourke Street, to local firm ARW Multigroup.

The firm would develop 17 villas and townhouses, which would comprise the second stage. This stage had to comply with the master plan, approved in late 2014.

"We want to ensure it is all complementary. We don't want a half-finished development," Mr Daoud said.

He said he sold the block due to work on his other projects, but also the difficulty of securing sufficient local tradespeople for "fine construction".

Mr Daoud has, however, used local tradespeople throughout.

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