An aerial view of the site of the new Shellharbour Hospital. Photo: Health Infrastructure.
The NSW Government has fast-tracked two major rezonings in Shellharbour that will pave the way for about 5700 new homes and accelerate the city’s transformation into a world-class health and innovation precinct.
While the Property Council of Australia has welcomed the move, it has also highlighted the need for transport infrastructure to ensure it is successful.
Shellharbour City Centre will gain about 5000 new homes and the new Shellharbour Hospital Precinct about 700 new homes in a project designed to deliver more housing close to jobs, transport, and essential services in one of NSW’s fastest-growing regions.
A 125-hectare Shellharbour City Centre rezoning will create a modern, inclusive city centre through redevelopment of the former Shellharbour Hospital and TAFE sites into housing, along with new parks and upgraded footpaths to make it easier to get around on foot.
Plans for the 90-hectare new Shellharbour Hospital Precinct rezoning will feature medium to high-density homes, including for key workers; shops, private health services, and short-stay accommodation; and a 150-room facility for families visiting patients.
NSW Minister for Planning and Public Spaces Paul Scully said the rezonings would help ensure the right mix of homes, infrastructure and services were in place to support growth.
“These rezonings will support thousands of new homes in well located areas of Shellharbour, close to jobs, open spaces and the new Shellharbour Hospital,” Mr Scully said.
“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.”
Minister for Regional Health and the Illawarra South Coast Ryan Park said the projects were a key step in shaping Shellharbour’s future as a world-class health and innovation precinct.
Mr Park said each would be a place where people could access first-rate healthcare, live close to where they worked, 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,” he said.
However, while Property Council Illawarra Shoalhaven Regional Director Matthew Wales called it a “positive step” for the region’s future, he said the focus must now shift from planning to delivery.
“With 427,000 people already calling the Illawarra Shoalhaven home … the focus must now be firmly on delivery,” Mr Wales 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 successful delivery would depend on better transport infrastructure, including more frequent buses and trains, cycling links, road upgrades, and improved regional connections to Western Sydney International Airport.
“Get the approvals moving, fund the enabling works, and we’ll see shovels in the ground faster,” he said.
“Done well, these rezonings will lift housing supply, strengthen our advanced manufacturing, health, and education base, and help ready the region for the future.”
Member for Shellharbour Anna Watson said these rezonings would help strengthen Shellharbour’s position as a regional health hub and place to live.
“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,” Ms Watson said.
Public exhibition of the city centre proposal is expected in the second quarter of 2026, with finalisation anticipated in late 2026, while public exhibition of the new Shellharbour Hospital proposal is expected in 2026.
Original Article published by Kellie O’Brien on Region Illawarra.
