Illawarra Development Boom Continues into 2026 with Major Projects
The Illawarra region is witnessing a significant and ongoing development boom that began in 2025 and is now carrying forward into the new year. A diverse range of housing and commercial business development plans have been submitted to local councils across the area, highlighting sustained growth and investment in the region.
Albion Park Rail Set for Townhouse Expansion
In Albion Park Rail, a suburban street could see a substantial increase in activity with fifteen townhouses proposed across two separate blocks. Plans have been formally lodged with Shellharbour City Council for two distinct townhouse projects located on Wooroo Street, positioned just 150 metres apart from each other.
- At 9 Wooroo Street, the proposal includes eight two-storey townhouses accompanied by twelve residential parking spaces and four visitor parking spots.
- Further down the road at 26 Wooroo Street, seven two-storey townhouses are planned, with three of these units featuring a double garage.
Clifton Townhouse Development Revised After Court Action
A major $16 million townhouse development overlooking the Imperial Hotel at Clifton has been scaled back following intervention by the Land and Environment Court. Original plans submitted to Wollongong City Council in February last year included six townhouses and a two-storey home complete with basement parking and a pool.
After the council issued a deemed refusal, the developer Segco took the matter to court. The court's involvement has resulted in revised plans that are now on public exhibition until February 23, with the overall size of the development being reduced.
West Dapto to Receive New Supermarket
The expanding West Dapto area has reached a population threshold that now justifies its own supermarket facility. Currently, Horsley residents must travel approximately four kilometres to access the nearest supermarkets located at Dapto Mall.
This situation is set to change following Fabcot, Woolworths' property division, purchasing a substantial 9.2-hectare parcel of land on Bong Bong Road between McKelly Street and Hayes Lane in October last year. A Woolworths spokesperson confirmed plans to construct a supermarket on this large block, addressing local shopping needs.
Developer Aims to Build on Long-Vacant Windang Site
A Windang block of land situated just twenty metres from the shores of Lake Illawarra has remained undeveloped for more than two decades, despite previous attempts to build on the property. The site, located on Windang Road on the northern side of the bridge, has been vacant since the council sold it in 1993.
In 2001, plans for four townhouses received council approval but were never constructed. Now, a new developer has lodged a development application with Wollongong City Council, hoping to finally break what some consider a curse on the property.
Kiama Apartment Complex Gains Approval for Additional Level
A beachside Kiama apartment complex has successfully obtained approval to add an extra level after pursuing court action. Developer Level 33 initially submitted plans to Kiama Council for a four-storey apartment block called Elan, featuring fifteen residences in Bourroul Street overlooking Surf Beach.
When a modification request to add another level containing five additional units resulted in a deemed refusal from the council, the developer chose to take the matter to the Land and Environment Court, ultimately receiving the go-ahead for the expanded project.
These development proposals collectively demonstrate the Illawarra region's continued growth and the ongoing demand for both residential and commercial infrastructure across multiple local government areas.
