Councillors will again consider the plans after a reserved matters application for the development to build 260 homes was lodged by Redrow Homes.
Reserved matters are details of a proposed development which an applicant can choose not to submit with an outline planning application.
Plaid Cymru councillor Lindsay Whittle, who represents the Penyrheol ward which covers the estate, said the decision to overturn had been one of the “worst days of my political life”.
He said: “I’m still smarting and angry from that decision. My phone, email and Facebook page has been red hot from people who are very concerned about the impact this will have on people’s travelling lives.
“The impact of 260 residential homes, on top of other housing developments, will have a catastrophic impact on traffic at the St Cenydd roundabout.
Cllr Whittle said that while he will oppose this application once again, there is little that can be done because outline planning permission was granted by the Welsh Government.
Outline permission for the development was previously rejected in 2016 due to concerns over traffic issues, but the decision was overturned the following year.
As part of the development, affordable housing would be provided with a mix of social, rented and low-cost ownership homes, spread over six locations on the site.
Play facilities are proposed in a central position within the development, close to open space areas, under the application.
Several pedestrian and cycle links are also planned to connect with existing nearby residential developments, while a connection to the Aber Valley Cycle Route – linking Caerphilly with Senghenydd – is also proposed.
Plans also allow for a bus route to come into the site and turn back out onto Hendredenny Drive.
The site is made up of five fields, extending to 11.2 hectares, separated by hedgerows and fences.
The Coal Authority has said a mine entry shaft is present on the site.
It called for an investigation to locate the mine shaft and create a “no build” zone, otherwise warning it would object to the plans.
But in response, developer Redrow Homes said the mine entry shaft is located outside of the boundary of the site.
“A 20m buffer should be maintained as this radius is considered more than sufficient to ensure that the risk to nearby buildings is low,” the developer says.
“As a result, the nearest building is approximately 26m from the mine shaft entry identified off-site.”
Additional reporting by the Local Democracy Reporting Service.