The New South Wales government has unveiled major rezoning proposals for Shellharbour, laying the groundwork for up to 11,700 new homes and 1,750 local jobs across two key precincts.
The government said the initiatives will focus on revitalising the Shellharbour City Centre and establishing a dynamic mixed-use neighbourhood surrounding the new Shellharbour Hospital Precinct. The moves aim to support an expected regional population growth of 28,000 residents by 2041.
The ambitious Shellharbour City Centre proposal accounts for the bulk of the expansion, offering up to 10,000 new dwellings with building heights ranging from two to 22 storeys.
It incorporates mandatory affordable housing quotas, 10 per cent on government land and 5 per cent on private land, alongside 14 hectares of public open space and around 900 new jobs in retail and commercial sectors.
Simultaneously, the New Shellharbour Hospital Precinct proposal will unlock up to 1,700 homes and 800 jobs. Designed to cater to healthcare workers, the precinct features dedicated aged care facilities and a local centre along Dunmore Road, located within walking distance of Shellharbour Junction Train Station and the AU$828.9 million New Shellharbour Hospital project.
“By revitalising the city centre and unlocking housing around the new hospital precinct, we are creating vibrant communities where people can live closer to work, services and public transport,” said Minister for Planning and Public Spaces Paul Scully.
“These rezonings will help deliver more homes, including affordable housing, while strengthening Shellharbour’s role as an economic and health hub for the Illawarra.”
The proposals align with broader regional initiatives, including the draft Illawarra Shoalhaven Regional Plan, which targets 117,000 additional homes over the next two decades.
The state government’s planning reforms have grown the pipeline of homes for NSW, with the highest number of homes under construction in the country, more than 80,000 homes, and more in the pipeline.
The plans are on public exhibition starting August 10 until September 8.