Property Council Illawarra Shoalhaven Regional Director Matthew Wales said the announcement was a positive step for a fast-growing region.
"This is great news for local families and essential workers. More well-located homes close to jobs, schools and the new hospital is exactly the kind of practical planning the region needs," Mr Wales said.
"With 427,000 people already calling the Illawarra Shoalhaven home and the region ranked as NSW's third-largest economy, the focus must now be firmly on delivery," he said.
"Government and industry must work together to move quickly from rezoning to construction, while sequencing the infrastructure that makes new neighbourhoods work."
Mr Wales said success will hinge on sequencing enabling infrastructure with the new precincts.
"These precincts need frequent buses, safer walking and cycling links, and road upgrades that keep people connected to the hospital, the city centre, and jobs.
"Better regional links, including more frequent trains and a business case for improved connections to Western Sydney International Airport, will also support workforce access and investment.
"Get the approvals moving, fund the enabling works, and we'll see shovels in the ground faster," Mr Wales said.
"Done well, these rezonings will help to lift housing supply, strengthen our advanced manufacturing, health, and education base, and help ready the region for the future.
"The revitalisation of Wollongong's CBD is progressing at pace, while Port Kembla and our tourism assets continue to grow. Shellharbour's new homes and health precinct will play a vital role in that broader regional story, supporting jobs today and a stronger economy tomorrow," Mr Wales said.
