Property Council Illawarra and Shoalhaven Regional Director Matthew Wales said the proposals could unlock up to 11,700 new homes and 1,750 jobs across a revitalised Shellharbour City Centre and the New Shellharbour Hospital Precinct.
"The draft Regional Plan identifies Shellharbour as a key strategic centre for the region, and these proposals help put that vision into practice by concentrating housing, jobs, services and infrastructure in well-connected locations," Mr Wales said.
"We'll respond in detail in due course, but what's pleasing is that this announcement aligns with the Property Council's long-running call for housing growth to be backed by infrastructure, transport and precinct planning across the Illawarra Shoalhaven," he said.
Mr Wales said the Property Council has consistently advocated for continued housing, infrastructure and connectivity investment across the region and recognised Shellharbour as a key component of the region's growth story.
"This is exactly the kind of planning work regional growth centres need, with new housing lined up near jobs, health services, education, open space and public transport," Mr Wales said.
"A core objective of the Regional Plan is providing more housing close to where people work, study and access essential services. These rezonings support that objective by creating opportunities for more people to live near the city centre and the region's major health facilities.
"Shellharbour is a critical part of the Illawarra Shoalhaven growth story, and if we want the region to remain affordable and competitive, we need more diverse housing supply supported by the infrastructure that makes new communities work."
Mr Wales said the proposed housing and employment opportunities around the new hospital precinct had the potential to support a genuine health and innovation hub for the region.
"Putting more homes near a major hospital is common sense planning, particularly for essential workers who have increasingly been priced out of the housing market, as our Beyond Reach research has shown.
"The key test now will be delivery – these plans need clear sequencing, infrastructure coordination and practical pathways that allow industry to turn zoned capacity into homes on the ground," Mr Wales said.
