Heritage Homes says it is considering how best to progress its scheme for 100 houses on land behind Kirk Michael School.
Yesterday, it was announced that the plans had been turned down by an independent planning inspector, a decision endorsed by the Council of Ministers.
The developer says it is "naturally disappointed" at the move, but is encouraged by the positive conclusions reached by the inspector over matters such as housing need, drainage and landscaping.
The company adds the land remains zoned for residential development and it will now look at the issues which have been raised by the inspector.
These Kirk Michael residents have mixed views on the news: