Illawarra-Shoalhaven Development: Opportunities and Challenges from the UDIA Building Blocks Update

The Illawarra and Shoalhaven regions are facing a significant growth period, driven by the critical need for more housing. For developers operating in this dynamic market – understanding the landscape is paramount. The Urban Development Institute of Australia (UDIA) NSW has released its “Illawarra-Shoalhaven Building Blocks 2025 Update” a key document that analyses the challenges and opportunities. Allen Price has reviewed this update to provide developers with a concise overview of the critical factors influencing development feasibility.  

The UDIA report, which complements their statewide “NSW Housing Accord Progress Report” (in collaboration with Mecone), highlights that many Local Government Areas (LGAs) across New South Wales are struggling to meet their five-year housing targets. In the Illawarra-Shoalhaven, Wollongong and Kiama are slightly behind, Shoalhaven is nearly on target, and Shellharbour is performing strongly. Critically, the “Building Blocks” report identifies infrastructure constraints as a major impediment to housing delivery in the region.  

The report indicates that a $400 million investment could unlock the development of 13,510 new homes in the Illawarra-Shoalhaven over the next five years. This investment would target key infrastructure, including:  

  • Wollongong City Council: Road upgrades (e.g., Western Ring Road), water and sewer improvements, and electricity substation development.  
  • Shellharbour City Council: Infrastructure to support the Calderwood Urban Development Project, including roads (e.g., Calderwood Road), water and sewer systems, and electricity substations.  
  • Kiama Municipal Council: Gravity sewer lead-ins, upgrades to the Saddleback Mountain Road reservoir, and electrical feeders.  
  • Shoalhaven City Council: Construction of the Moss Vale Road North Evacuation Route, a watermain extension in Callala Bay, and the Cambewarra Zone Substation.  

For developers, this translates into opportunities to deliver much-needed housing while contributing to essential infrastructure projects. The full UDIA report provides detailed information on these opportunities, broken down by LGA.  

Allen Price is ideally placed to support developers in navigating these complexities. Our expertise in town planning, civil engineering, project management, and surveying allows us to provide comprehensive solutions for development projects in the Illawarra and Shoalhaven regions. We help our clients capitalise on the growth of these areas.

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