The NSW government has finalised three rezonings on the South Coast, opening the way for around 1,300 new homes across Nowra and Kiama and creating a significant construction pipeline for local tradies.
Two rezonings in Nowra, the Nowra Riverfront Precinct and the Mandalay Sub-Precinct, will allow up to 900 homes along the Shoalhaven River foreshore. A third rezoning covers a former Kiama council depot, centrally located near the beach, town centre and train station, where approximately 380 homes are planned. The NSW Department of Planning, Housing and Infrastructure confirmed the announcements, corroborated by Inside State Government.
Building heights will range from 5 to 12 storeys in the Nowra Riverfront Precinct and up to 6 storeys in the Mandalay Sub-Precinct and at the Kiama site. The Kiama development also includes roughly 600 parking spaces in the development controls. Both Nowra precincts require at least 30% social and affordable housing on Homes NSW land, with 2% affordable housing on private lots. The Kiama site must deliver a minimum 10% affordable housing in perpetuity.
NSW Planning Minister Paul Scully said the rezonings were aimed at activating land that had been sitting idle. “For too long, families have struggled to find somewhere to live, and activating underutilised sites allows us to deliver the new homes these families need,” he said. Housing Minister Rose Jackson pointed to the mandatory affordable housing components as central to the plan. “Social and affordable housing is key to a strong housing system that is accessible for everyone and that’s exactly why we’re delivering it here.”
For tradies in the Illawarra-Shoalhaven corridor, these projects represent a real pipeline, but one that is still some way off. Shoalhaven City Council must first prepare a site-specific Development Control Plan for the Nowra precincts, and the Kiama DA process has not yet started. The Illawarra Mercury reported that the Kiama rezoning also faced community objections before it was finalised, which could affect timelines. The bulk of on-tools construction work is likely 12 to 24 months away. Civil and site-preparation packages are worth watching for first. Landcom’s 60 build-to-rent homes in nearby Bomaderry are on track to finish by the end of 2026, which may offer earlier opportunities for local subcontractors.
The three sites sit within NSW’s broader state-led rezoning pipeline, which currently has close to 70 projects underway targeting more than 236,000 homes statewide. The Housing Industry Association has put the national housing shortfall at around 67,000 dwellings below target in 2024-25 alone, underlining the pressure behind the push.
Frequently asked questions
How many homes will the NSW South Coast rezonings deliver?
The three rezonings are expected to deliver around 1,300 homes in total: up to 900 across two Nowra precincts and approximately 380 at a former council depot site in Kiama.
What affordable housing is required under the rezonings?
The two Nowra precincts require at least 30% social and affordable housing on Homes NSW land and 2% affordable housing on private lots. The Kiama site must deliver a minimum 10% affordable housing in perpetuity.
When will construction work start on these sites?
The bulk of on-tools construction is likely 12 to 24 months away. Shoalhaven City Council still needs to prepare a Development Control Plan for the Nowra sites, and the Kiama DA process has not yet begun.
Are there any earlier construction opportunities for tradies in the area?
Landcom’s 60 build-to-rent homes in nearby Bomaderry are on track to finish by the end of 2026, and civil and site-preparation packages on the rezoned sites may come to market before the main residential builds.
Sourced from NSW Department of Planning, Housing and Infrastructure, Inside State Government, Illawarra Mercury, Housing Industry Association. Original article.
