The Minns Labor Government is accelerating two major rezonings in Shellharbour to unlock approximately 5,700 new homes, create jobs, and help drive the region's transformation into a world-class health and innovation precinct.
With the Illawarra-Shoalhaven projected to be the fastest-growing region in NSW, these rezonings are a critical step toward meeting future housing, health and infrastructure needs.
The rezoning projects will support the delivery of more well-located housing near hospitals, schools, and transport links, helping essential workers - such as healthcare, teachers, and hospital staff - live closer to their workplaces.
They will also pave the way for enhanced healthcare services and better connectivity across the region.
The two sites are:
Shellharbour City Centre (state-led) - approximately 5,000 new homes
This 125-hectare rezoning will transform Shellharbour into a modern, inclusive city centre with a mix of low to high-density housing and expanded public spaces.
Key features include:
- Redevelopment of former Shellharbour Hospital and TAFE sites
- New parks and walkable streets
- Proximity to the $781.9 million new Shellharbour Hospital
The proposal includes a diverse mix of low, mid-rise, and higher-density housing and improved open space, with more parks and upgraded footpaths to make it easier to get around on foot.
The proposal reimagines the former Shellharbour Hospital and TAFE sites for additional homes in walking distance to the city centre.
Public exhibition of the proposal is expected in the second quarter of 2026, with finalisation anticipated in late 2026.
New Shellharbour Hospital Precinct (state-assessed) - approximately 700 new homes
Located next to the new Shellharbour Hospital, this 90-hectare precinct will support:
- Medium to high-density homes, including housing for key workers
- Shops, private health services, and short-stay accommodation
- A 150-room facility for families visiting patients.
The new homes would support key workers, including healthcare and hospital staff, making it easier for them to live close to where they work. Public exhibition of the proposal is expected in 2026.
These rezonings support the long-term vision of the Illawarra Shoalhaven Regional Plan 2041, which outlines a blueprint for population growth, housing supply, job creation, and improved transport.
The exact number of new homes to be delivered across the sites will be determined during the rezoning process.
The proposals were independently assessed by a departmental evaluation panel, with oversight from a probity advisor for transparency and integrity measures.
This is part of the Minns Government's plan to build a better NSW with more homes, parks and services, so young people, families and key local workers have somewhere to live and in the communities they choose.
The new rezoning proposals build on the NSW Government's earlier announcements of State-led and State-assessed rezoning projects. For more information, visit State Significant Rezoning Policy | Planning
Minister for Regional Health and the Illawarra South Coast Ryan Park said:
"These rezonings will help shape Shellharbour's future as a world-class health and innovation precinct, a place where people can access first-rate healthcare, live close to where they work, and be part of a thriving community.
"By unlocking new homes near the new Shellharbour Hospital, we're building a stronger, more connected health district that supports nurses, doctors, and essential workers to live locally.
"This is a major step in delivering the infrastructure and services the Illawarra Shoalhaven needs as it becomes one of the fastest-growing regions in NSW."
Minister for Planning and Public Spaces Paul Scully said:
"These rezonings will support thousands of new homes in well located areas of Shellharbour, close to jobs, open spaces, and the new Shellharbour Hospital.
"By bringing more homes closer to the new Shellharbour Hospital and the growing city centre, we're helping essential workers like healthcare workers, teachers and hospital staff find affordable housing within the community.
"The Illawarra-Shoalhaven is one of the fastest-growing regions in New South Wales, and this kind of forward planning will make sure we have the right mix of homes, infrastructure and services in place to support that growth."
Member for Shellharbour Anna Watson said:
"This is an exciting moment for our community, these rezonings will help deliver thousands of new homes and create local jobs while strengthening Shellharbour's position as a regional health and innovation hub.
"For local families and key workers, this means more opportunities to live close to work, transport, schools and the new $781.9 million Shellharbour Hospital.
"We're planning for growth in a way that keeps what we love about our community - with more green spaces, walkable streets and better connections between our neighbourhoods."
