Port Kembla Land Transformation Project: What It Means for Housing, Investment, and the Future of the Illawarra

Joel Hynes
Sep 18
4 min read

The Illawarra has always been shaped by its industries. From coal mining to steelmaking, the region's identity has been forged by hard work, heavy infrastructure, and strong communities. Now, with the Port Kembla Land Transformation Project—a rezoning proposal currently on exhibition until 2 October 2025—the region is facing another once-in-a-generation opportunity https://pp.planningportal.nsw.gov.au/ppr/under-exhibition/port-kembla-land-transformation-project.

Covering 200 hectares of underutilised industrial land within BlueScope's Port Kembla Steelworks, the project could unlock up to 30,000 jobs across advanced manufacturing, renewable energy, education, and technology. But what does this mean for the everyday Illawarra resident? And, more importantly for property buyers and investors, how will it reshape the housing market?

This detailed piece breaks it down: the scale of the project, its ripple effects on jobs and population, the likely pressure on housing supply, and what opportunities this creates for buyers looking to secure their future in the Illawarra.

1. The Scale of the Project

At its heart, this is a rezoning proposal. That means land currently dedicated to heavy industry could be opened up for a broader mix of uses. According to the BlueScope master plan and NSW Government exhibition https://pp.planningportal.nsw.gov.au/ppr/under-exhibition/port-kembla-land-transformation-project:

The project spans 200 hectares, located predominantly along Five Islands Road.
It includes a vision for cleaner industries, education hubs, and innovation precincts.
Environmental studies have already been undertaken, including assessments of air quality, flooding, ecology, and heritage.

Put simply: this is about taking disused or underutilised steelworks land and giving it a new purpose—one that aligns with the Illawarra's clean energy transition.

2. Economic Impact: 30,000 Jobs and Beyond

The headline figure—30,000 jobs—cannot be overstated. For a region with a population of around 320,000, that’s transformative. Even if only a portion of those jobs materialise in the first decade, the impact on:

Local employment: Significant reduction in outbound commuting to Sydney.
Income growth: Higher wages tied to renewables, tech, and advanced manufacturing.
Population attraction: Skilled workers moving into the Illawarra for jobs.

This means more demand for housing, schools, transport, and lifestyle infrastructure.

3. Housing Market Pressures

Currently, the Illawarra is already experiencing housing supply constraints. Vacancy rates are below 1% across many suburbs, while median house prices in Wollongong sit above $1 million. Adding tens of thousands of jobs to the local economy will only tighten housing availability unless new housing projects are accelerated.

Key impacts likely include:

Increased demand in nearby suburbs: Port Kembla, Warrawong, Cringila, Berkeley, and Unanderra will see uplift first.
Rental market pressure: Workers relocating for jobs will drive rents higher, especially for units near the CBD and transport hubs.
Gentrification: Suburbs historically overlooked may see new cafes, schools, and lifestyle amenities as higher-income workers move in.

4. Buyers’ Opportunities

For buyers—whether first-home buyers, investors, or upgraders—the project presents both challenges and opportunities.

First-Home Buyers

May face increased competition in entry-level suburbs.
Should consider suburbs like Bellambi, Towradgi, and Warrawong, where relative affordability remains.
Government incentives and potential future housing releases may soften the blow.

Investors

Strong opportunity in rental yields given workforce influx.
Industrial-adjacent suburbs may see the fastest growth in both demand and capital appreciation.
Units in Wollongong and Warrawong may offer some of the best short-to-mid-term rental demand.

Upsizers and Families

The project may bring new infrastructure upgrades (schools, parks, roads) which lift the liveability of suburbs once considered “fringe.”
Coastal lifestyle suburbs (Thirroul, Austinmer, Shellharbour) will remain premium but may experience a trickle of demand as high-income earners seek lifestyle properties.

5. Infrastructure and Lifestyle Ripple Effects

The transport strategy included in the project’s exhibition outlines plans to manage traffic, freight, and commuter flows. This is crucial because:

Five Islands Road already experiences congestion.
Any large-scale jobs hub must integrate with road and rail upgrades.
Improved infrastructure increases property desirability in surrounding suburbs.

In addition, new community assets—green space, heritage preservation, and education facilities—are expected. For buyers, this means not just jobs, but an improved quality of life.

6. Risks and Considerations

No transformation comes without risks. Buyers should consider:

Timeline uncertainty: Rezoning approval, master planning, and staged development could stretch over decades.
Environmental management: Land contamination, flooding, and ecological issues must be carefully addressed.
Market over-expectation: Not all promised jobs and infrastructure will appear overnight.

7. Long-Term Outlook: 5–20 Years

Looking ahead, the Port Kembla Land Transformation Project could be the Illawarra's equivalent of Western Sydney Airport—a catalytic development that reshapes the economy and property market.

In the short term (1–5 years): Expect increased speculation, with investors targeting affordable suburbs around Port Kembla.
In the medium term (5–10 years): Infrastructure upgrades and staged roll-out of jobs begin driving housing demand in the wider Wollongong LGA.
In the long term (10–20 years): Illawarra positions itself as a clean energy and advanced manufacturing hub, attracting national and international business, with housing demand spreading down to Shellharbour and up towards Helensburgh.

8. What Buyers Should Do Now

Stay Informed: Submissions close 2 October 2025—residents should engage to shape the outcome.
Research Suburb Dynamics: Understand which suburbs are undervalued today but strategically positioned tomorrow.
Plan for Rental Demand: Investors should focus on high-rental-demand properties near employment hubs.
Think Long-Term: Families should see this as an opportunity to buy into suburbs before
infrastructure lifts values.

Conclusion

The Port Kembla Land Transformation Project is more than a rezoning—it's a statement about the Illawarra's future. By reimagining 200 hectares of steelworks land into an innovation and clean energy precinct, the region is preparing for a new era of prosperity.

For housing and property, the ripple effects will be enormous: tighter supply, rising demand, new opportunities for buyers and investors, and long-term structural change to the Illawarra market.

The decisions made in 2025 will set the tone for decades. For those looking to buy, invest, or simply understand the future of the Illawarra, now is the time to pay attention.

👉 Submissions are open until 5 PM, Thursday 2 October 2025, on the NSW Planning Portal https://pp.planningportal.nsw.gov.au/ppr/under-exhibition/port-kembla-land-transformation-project