New modular housing push could deliver manufacturing jobs to Illawarra
Could the Illawarra build NSW's next generation of homes?
A major NSW Government push into modular housing could open the door to new manufacturing jobs in the Illawarra, with local businesses being urged to compete for investment in the state’s next generation of home building.
The NSW Government has opened a global Expression of Interest for companies to establish or expand large-scale modular housing manufacturing facilities, with the Property Council arguing the region is well placed to become a key manufacturing hub.
The Property Council of Australia is urging Illawarra manufacturers, construction businesses and innovators to seize the opportunity, with regional director Matthew Wales saying the region’s industrial heritage and manufacturing capability made it a strong contender.
“The Illawarra has all the ingredients needed to become a powerhouse for modern construction,” Property Council Illawarra Shoalhaven Regional Director Matthew Wales.
“We have a skilled industrial workforce, strong manufacturing capability, world-class transport connections and one of the state’s most important ports right on our doorstep.”
Under the NSW Government’s plan, businesses are being invited to establish or expand facilities capable of producing prefabricated building components and modular housing for higher-density residential developments.
The Government says it is prepared to support successful proposals through measures including financial assistance, suitable land and long-term purchasing agreements, with the aim of growing local manufacturing while accelerating housing delivery.
“This is a call to action for the world’s best manufacturers. If you have the expertise to build faster, smarter and at scale, we want you to help us build homes in NSW,” Minister for Planning and Public Spaces and Member for Wollongong, Paul Scully said.
“Modern methods of construction will help us deliver more high-quality homes while reducing waste, lifting productivity and growing local manufacturing.”
Mr Wales said Port Kembla could become a major gateway for the emerging industry, receiving materials through the port before manufacturing and assembling housing products for projects across NSW.
“Port Kembla could become a major gateway for Modern Methods of Construction, with the potential to bring components and materials through the port, undertake manufacturing and assembly in the Illawarra, and then distribute housing products across the state,” he said.
Modular housing is already being built in the Illawarra.
The first three modular social homes in Wollongong were completed in July last year, with another five modular homes planned for Shellharbour as part of the NSW Government’s Building Homes for New South Wales program.
Unlike traditional construction, modular homes are largely built in factories before being transported to site for installation, reducing construction time, minimising waste and easing pressure on the building workforce.
Mr Wales said winning a share of the state’s modular housing industry would create skilled jobs, attract investment and help write the next chapter of the Illawarra’s industrial history.
“For generations, the Illawarra has built things that have helped shape NSW and modern construction could be the next chapter in that story,” he said.
“This is about more than building homes. It’s about creating skilled jobs, attracting investment, supporting local businesses and positioning the Illawarra at the heart of a rapidly growing industry.”
The Expression of Interest is the first stage of a two-stage procurement process, with proposals to be assessed on commercial readiness, manufacturing capability and their ability to deliver at scale.
It forms part of a broader NSW Government push to grow the modular construction sector, including almost $4 million for innovation and industry grants, a new certification framework for prefabricated buildings and planning and procurement reforms aimed at expanding the use of modular construction across the state.
