The Minns Labor Government is delivering more homes and jobs for the Illawarra, placing two major rezoning proposals on public exhibition, that could unlock up to 11,700 new homes and 1,750 new jobs across a revitalised Shellharbour City Centre and the new Shellharbour Hospital Precinct.
The two proposals cement Shellharbour's place as a regional centre in one of the fastest growing areas of the state, with the population set to surge by around 28,000 people to reach more than 100,000 residents by 2041.
Together, the rezonings will deliver more diverse and affordable housing close to jobs, health services, transport and open space, building on the Minns Labor Government's significant investment in the Illawarra region including the $828.9 million New Shellharbour Hospital and Integrated Services Project.
Shellharbour City Centre Rezoning Proposal
The Shellharbour City Centre rezoning proposal will redefine the heart of the city, boost housing and jobs, activate retail and commercial spaces, improve transport connections and deliver more than 14 hectares of new public open space.
Key features include:
- up to 10,000 new homes,
- 10 per cent affordable housing on government owned land and five per cent on private land,
- around 900 new jobs through expanded retail and commercial uses,
- better walking and cycling options and improved access to public transport,
- continued operation of TAFE NSW Shellharbour campus, and
- building heights ranging from two to 22 storeys, with taller buildings in the centre and lower heights around the edges of the precinct.
New Shellharbour Hospital Precinct Rezoning Proposal
The New Shellharbour Hospital Precinct rezoning proposal will create a mixed use neighbourhood around the new hospital to make sure that key workers, including hospital and healthcare staff, have the opportunity to live close to where they work, while opening up additional health sector jobs.
Key features include:
- up to 1,700 new homes including two per cent affordable housing,
- around 800 new jobs,
- a new local centre next to the hospital along Dunmore Road to support allied health services,
- dedicated opportunities for aged care and seniors housing, and
- building heights between two and seven storeys.
This new precinct could deliver new low and medium density housing, open spaces and a new local centre within walking distance of the new Shellharbour Hospital and the Shellharbour Junction Train Station.
In addition to the new hospital, the Minns Labor Government is delivering a new primary school at West Dapto and a new high school in Flinders, catering for 1,350 students by 2029.
The two Shellharbour rezoning proposals build on a wave of housing delivery across the Illawarra and South Coast, including around 1,300 homes recently unlocked in Nowra and Kiama, and 60 build-to-rent homes underway in Bomaderry, as the Minns Labor Government continues to turn underutilised land into real communities.
The rezoning proposals also sit within a broader long term vision for the region, with the Minns Labor Government recently releasing the draft Illawarra Shoalhaven Regional Plan for public exhibition and the proposal to rezone 200 hectares of surplus industrial land at BlueScope's Port Kembla site. This transformation will support the next generation of advanced manufacturing and clean energy industries.
The 20-year plan sets clear goals to deliver 117,000 more homes and more than 100,000 new jobs across the region, with critical infrastructure including transport, roads, schools and health services mapped out to support communities as the population grows by an expected 161,000 people by 2046.
The Minns Labor 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.
This is part of the Government's plan to build a better Illawarra with more homes, jobs, parks and services, so young people, families and key local workers have somewhere to live and work in the communities they choose.
The proposals are now on public exhibition until 5pm, 8 September 2026, and all members of the community are encouraged to have their say.
Drop-in information sessions will be held at the Jungah Auditorium, Shellharbour Civic Centre between 3.30pm - 6.30pm on 24 August and between 11am - 2pm on 25 August 2026.
For more information, visit Shellharbour City Centre Rezoning Nowra Riverfront Precinct and New Shellharbour Hospital Precinct Rezoning.
Minister for Regional Health and Minister for the Illawarra and South Coast, Ryan Park said:
"We know the Illawarra is quickly growing, and that is why we are ensuring communities like Shellharbour have the essential services and infrastructure they need to support that growth.
"These rezonings set out a plan to deliver more homes and more jobs close to the city centre as well as near the new Shellharbour Public Hospital, creating a precinct that supports our healthcare workers and strengthens the region's future
"The Minns Labor Government is investing on the services people rely on every day, including more than $1 billion in new and improved health facilities in the Illawarra, schools, and roads."
Minister for Planning and Public Spaces, Paul Scully said:
"Shellharbour is one of the fastest growing communities in the state, and the Minns Labor Government is making sure it has the homes, jobs and infrastructure needed to support that growth.
"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.
"These rezonings will help deliver more homes, including affordable housing, while strengthening Shellharbour's role as an economic and health hub for the Illawarra."
Member for Shellharbour, Anna Watson said:
"Shellharbour is growing rapidly, and it is important we plan now to meet the needs of future generations.
"These proposals build on the significant investments already being made in health, education and infrastructure across our community.
"I encourage everyone to look at the plans and have their say as we help shape Shellharbour's future."
