Homes NSW Illawarra renewal projects - public ownership?

Public Housing, Illawarra

The Bellambi estate.

Renewal & removal

Since 2024 Homes NSW, a department of the NSW Government, has been investigating and planning renewal projects for public housing in the Illawarra district, specifically in Bellambi, Crown St Wollongong, Gwynneville and Sandon Point Bulli. This page provides information on those projects and addresses the issue of public ownership options.

The Sandon Pt, Bulli, development at 6-10 Southview St, comprises three blocks of public coastal land owned by the former Housing Commission which are being integrated into a consolidated, 2-3 story building which will house 13 units of public house. This is prime coastal land and the proposed building will have a major visual impact upon the present landscape.

Proposed units, Sandon Point, Bulli.

The Crown St, Wollongong, development comprises a former 1950s apartment building which will be upgraded to accommodate 120 public housing units.

The plans for Bellambi and Gwynneville are still under development, though will likely result in demolition of current housing options to be replaced by updated alternatives. The Bellambi estate, which include prime beachfront land, will most likely see the most significant redevelopment and displacement of current residents.

In regards to the Bellambi issue, some of the following concerns have been raised by the community:

• The Bellambi estate currently comprises approximately 95 per cent social housing (472 residences) on prime beachfront land.
• The rezoning proposal, on public exhibition from 13 February to 13 March 2026, proposes up to 2,500 new dwellings with a minimum of approximately 30 per cent designated as social housing
• No feasibility study or financial model prepared by or for Homes NSW in relation to the Bellambi renewal has been made publicly available
• Wollongong City Council has itself called for a higher proportion of social housing in the proposal.

The present public housing stock in the estate is 472 residences. The proposal to make 650 available in the new estate, out of the total of 2,500 (i.e., 26%) is considered inappropriate by the community, as is the move from individual dwellings and ground level units to 6-storey tower blocks. A figure of 30% would provide 750 residences. The Green had called for 50% (1,250) at the new estate.

In the rezoning proposal passed by Wollongong City Council on 25 March 2026, reference was made to social, affordable and market housing, with no reference to affordable housing at that stage within the Homes NSW proposal. Council recommended a 10% in that regard. 

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References

Council supports plan to increase Bellambi housing stock, Wollongong City Council, 25 March 2026.

Homes NSW, Wollongong renewal projects – Bellambi, Crown Street and Gwynneville [webpage], NSW Government, 24 June 2025.

-----, Draft Bellambi People and Place Plan, NSW Government, June 2025, 23p.

-----, Bulli Local Development, NSW Government, 14 January 2026.

-----, Bellambi Renewal, NSW Government, February 2026.

-----, Seniors Housing Development: Sandon Point, Bulli, NSW Government, accessed 20 April 2026.

Humphries, Glenn, Bellambi beach-side social housing faces overhaul, Illawarra Mercury, 12 June 2024.

-----, Deidre Stuart: Bellambi social housing bid fails as Bellambi rezoning moves forward, Illawarra Mercury, 24 March 2026. 

Langford, Ben, Bellambi redevelopment needs more public housing, says Council, Illawarra Mercury, 19 March 2026.

Lasak, Jeremy, It's too big'! Locals tell Homes NSW go back to the drawing board on massive Gwynneville housing project, The Illawarra Flame, 11 April 2025.

-----, Build strong relationships for best result in Gwynneville development, housing expert tells locals, The Illawarra Flame, 19 September 2025.

-----, Last chance to have a say on controversial Bulli social housing plans, The Illawarra Flame, 12 December 2025.

Park, Ryan, Renewal of Illawarra public housing / affordable homes public meetings, Facebook, 26 June 2025.

-----, Bellambi housing renewal, Facebook, 27 March 2026.

Scully, Paul, Homes NSW rezoning proposal to unlock more homes and renewal for Bellambi estate, Ministerial press release, NSW Government, 13 February 2026.

Shelter NSW, Shelter NSW submission on Preliminary Planning Proposal for Gwynneville Public Housing Estate – A secure home for all, Submission to Wollongong City Council, 16 August 2024, 16p.

-----, Homes NSW stakeholder engagement – Bellambi and Wollongong [webpage], accessed 20 April 2026.

Social.RE, Bellambi – People and place led beachfront renewal [webpage], 2024.

Stewart, Genevieve, Residents resist plan to upend Bellambi housing, The Illawarra Flame, 7 April 2026. 

The Urban Developer, NSW Plans 2500-Home Shift for Wollongong Estate, 16 February 2026.

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Last updated: 21 April 2026

Michael Organ, Australia