The new builds were originally granted permission subject to conditions by Cork County Council, and developers Ruden Homes Limited lodged an appeal to An Bord Pleanála.
However, the planning board has refused permission.
The 70 houses were proposed for The Highlands, Ballynaroon, Glounthaune.
The development consisted of eight four-bed detached houses, 10 four-bed semi-detached houses, two three-bed detached houses, 38 three-bed semi-detached houses, eight three-bed end of terrace houses and four two-bed mid-terrace houses.
An Bord Pleanála gave numerous reasons for the refusal, citing issues with traffic management, connectivity to transport links and the project's density.
The refusal read: "Having regard to the infrastructural improvements required to provide safe connectivity for pedestrians, cyclists and motorists, to the village centre and to the railway station, it is considered that development of the kind proposed would be premature pending the determination by the planning authority of a road improvement works scheme for the area."
The board also identified issues with the traffic and transport assessment as it was carried out in June, and objectors to the project said this meant the scale of school-time congestion was not measured.
"In addition, the proposed development does not have an adequate mix of dwelling types, being predominantly semi-detached and detached housing.
"It is considered that the low density proposed would be contrary to these aforementioned Ministerial Guidelines, which indicate that net densities less than 30 dwellings per hectare should generally be discouraged in the interests of land efficiency.
"The proposed development would, therefore, be contrary to the proper planning and sustainable development of the area."