24 July 2025

Shellharbour reveals 20-year plan to house 29,000 more residents

| By Kellie O'Brien
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Shellharbour Marina boats

Shellharbour Marina before the construction of Crown Plaza. Photo: Kellie O’Brien.

As Shellharbour prepares for a population boom of more than 36 per cent by 2041, five key precincts — from Calderwood to the site of the new Shellharbour Hospital — have been earmarked as growth hotspots in the city’s updated 20-year planning strategy.

Shellharbour City Council’s updated draft Local Strategic Planning Statement (LSPS) is on public exhibition until 18 August.

The LSPS outlines how Shellharbour will grow over the next 20 years, balancing housing, jobs, transport, and green space, with other key focus areas including Shellharbour Airport, Shell Cove, and the corridor east of Lake Illawarra.

Mayor Chris Homer said the plan was an important opportunity for the community to help shape the future of Shellharbour.

“Shellharbour is growing quickly. Right now, around 80,000 people call our city home,” Cr Homer said.

“By 2041, we expect that to grow to more than 109,000.

“This plan helps make sure that growth is managed in a smart and sustainable way, so that we can protect what we love about Shellharbour while planning for the homes, transport, jobs and services we need.”

Within the report, it says that to “achieve the vision for Shellharbour, the city will need to leverage the places that will drive job creation, housing diversity and deliver vibrant communities”.

Among the five key areas is the Shellharbour Hospital, which is under construction and due to be completed by 2027.

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“The Shellharbour Hospital precinct will grow and change, utilising land surrounding the $780 million new hospital for 500-700 high density residential dwellings, commercial uses, short term accommodation, and the potential for private health facilities,” the report said.

“It will be a place that is connected, green and vibrant, promotes a mix of uses to complement the hospital, and provide much needed housing to support affordability, short term visitors, and key workers in the health sector.”

Further down the road, at Shell Cove Waterfront precinct, more than 3000 diverse housing options in total are planned, and nine hectares of vacant land available to generate employment opportunities.

“Calderwood is a master-planned community that will ultimately provide homes for over 12,000 people with 50 hectares of mixed-use land, open space, environmental lands, recreation and community facilities,” the report said.

Shellharbour Airport has 50 hectares of zoned industrial land available, which includes six hectares of the council-owned Shellharbour Airport Aviation Business Park, for employment opportunities.

The report also includes the 15 km East Lake Illawarra Corridor, bookended by Oak Flats and Port Kembla train stations along the east of Lake Illawarra, which takes in three centres recently announced as part of the NSW Government’s mid-rise reforms – Warrawong, Warilla Grove and Shellharbour City Centre.

Local Strategic Planning Statement

Shellharbour’s Local Strategic Planning Statement. Image: Shellharbour City Council.

“By 2066, total jobs in the corridor are anticipated to reach 53,200 … growing by 23,200 jobs,” the report said.

“Over the same time period, population in the corridor is anticipated to grow by 13,500 people, with 70 per cent of this new population expected to live in Shellharbour.”

With the report confirming there is already enough land zoned for future residential development to meet the growth, the focus now shifts to smarter planning — creating diverse and affordable housing options, improving transport links, and ensuring services such as schools, health, and aged care keep pace.

The updated LSPS is based on new population forecasts, housing needs, and the latest climate and planning data.

It also reflects community feedback collected through surveys, pop-up sessions and events during community engagement for the review of council’s Integrated Planning and Reporting (IP&R) documents.

This feedback helped council understand what matters most to the community when it comes to growth, housing, the environment and services.

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To achieve the vision for Shellharbour, it focuses on four key themes, including planning for more homes in the right places, protecting nature and preparing for climate change, creating safe, welcoming spaces with good services, and supporting jobs, tourism and businesses.

The draft LSPS includes actions that council will lead and deliver before the next review.

It includes reviewing the Housing Strategy and Development Control Plan, developing a Biodiversity Framework and Community Emissions Reduction Plan, and progressing planning work for areas such as the Shellharbour City Centre, Shellharbour Hospital Precinct and Albion Park Rail.

This is the first major review of the LSPS since it was first adopted in 2020.

Since 2020, council has supported new homes in Calderwood and Shell Cove, helped pave the way for the new Shellharbour Hospital, and introduced key strategies for net zero emissions, open space and active transport.

To learn more and make a submission, visit Let’s Chat or join the community drop-in sessions at Shellharbour Civic Centre on 30 July from 10 to 11:30 am and from 5:30 to 7:30 pm.

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