Planning changes could lead to a radically different Wollongong skyline

A change in planning rules designed to address the housing crisis could radically change the skyline of Wollongong.

Changes to the NSW Department of Planning’s rapid assessment framework for state significant developments means proposed residential developments with an estimated development cost of more than $30 million, which include at least 10 per cent affordable housing, are eligible to be fast-tracked for approval through the State Government, rather than going through local government approvals processes.

The move is intended to help address the housing crisis, which both Wollongong City Council and the NSW Government recognise as a priority area.

It’s not the only recent change that gives big developers more power in the name of addressing the housing crisis.

Another amendment to planning rules in December of 2023 allows developers to build taller if they devote 15 per cent of floor space to affordable housing.

Wollongong City Council – and the broader community – get to have their say when developers lodge an environmental impact statement and the application goes on exhibition.

So far there are five development applications that fit the criteria lodged with the State Government for the central Wollongong area.

1: 131 – 135 Crown Street Wollongong

HomeGround Real Estate Sydney on behalf of Crown Street Holdings NSW Pty Ltd has proposed an 18-storey shop top housing development including three basement levels on Crown Street.

The development would include 19 affordable apartments.

The proposal has not yet reached the exhibition stage.

2: 106 and 120-122 Smith Street and 3A Charlotte St, Wollongong

The Smith Street Development partnership, belonging to Urban Property Group has proposed four buildings with 145 apartments over eight residential storeys and ground level retail or commercial spaces.

It will contain 15 per cent affordable housing and 16 of the apartments are intended to be National Disability Insurance Scheme (NDIS) rental units.

The proposal includes two levels of above ground car parking with 177 spaces and vehicular access from Smith Street, a publicly accessible through-site link and a Torrens title subdivision.

The proposal has been on exhibition and is at the response to submissions stage.

3: Former Bunnings site on the corner of Gipps and Flinders Streets

A subsidiary of Sydney development company Level 33, Wollongong Developments No. 7, has proposed the demolition of the existing building and construction of a mixed-use development including shop top housing development comprising business and retail premises, and 906 apartments above two basement levels.

The development would be across five buildings between seven and 13 storeys high.

About 220 of the proposed apartments would be affordable.

The proposal is not yet on exhibition.

4: WIN Grand within Crown, Keira, Burelli and Atchison streets

Wollongong’s most expensive development project, the $500 million WIN Grand, sold to another subsidiary of Level 33, Wollongong Developments No. 8, for a city record price of $70 million earlier this year.

WIN Grand is the vision of WIN owner Bruce Gordon and has development approval for a mixed-use residential and commercial project.

The proposal includes three residential towers. The tallest would be 40 storeys high. The development would include 578 apartments, and about 100 of those would be designated affordable housing.

The proposal is not yet on exhibition.

5: Former Illawarra Mercury and City Coast Credit Union building, 21 Auburn Street

TQM Design Pty Ltd proposes a development worth more than $60 million at 21 Auburn Street.

The current building would be demolished and replaced with a 23-storey mixed-use project consisting of four levels of basement carpark, ground floor commercial offices, communal open space featuring a swimming pool and 164 apartments.

The proposal is not yet on exhibition.

Affordable housing is rental housing available to very low to moderate income households, priced below the market rate for a similar property in the same area.

As a rule of thumb, housing is usually considered affordable if it costs less than 30 per cent of gross household income.

Affordable housing rents vary and are set either as a discount to the market rent or as a percentage of a household’s income.

Where rent is set as a discount of the market rent, the discount is usually between 20 and 25 per cent.

The median rent for an apartment in Wollongong is $550 per week.

In addition to the state significant development applications, there are several applications for large developments in the same region sitting with Wollongong City Council.

One of those is from the Catholic Diocese of Wollongong.

The diocese has lodged plans for a 16-storey shop top on 23-27 Auburn and 38 Ellen streets to be known as the Xavier Centre.

The $58-million development will bring together half a dozen parish offices within the church and house more than 350 employees across four commercial floors.

Twelve residential levels will include 61 apartments, while four basement levels will allow parking for 155 vehicles.

Another application with Wollongong City Council is for 4-6 Blacket Street, opposite the Novotel.

Initially intended to be a four-storey building, Paragon Illawarra Pty Ltd has applied to include affordable housing as part of the development, if permission is granted to extend the building to six storeys.

There is also an application with Wollongong City Council for a five-storey apartment building at 15 Blacket Street.