The Illawarra’s new jewel? How Warrawong could become the region’s next hotspot
Warrawong’s glow-up is real: 30,000 jobs, 1500 homes, fresh parklands, schools and bars by the lake could flip this once-overlooked suburb into the Illawarra’s crown jewel.
You’ll have seen the headlines - up to 30,000 jobs coming to the world’s largest industrial land transformation project at BlueScope’s Port Kembla site.
Just over a kilometre away as the crow flies, up to 1500 new homes will be built as part of the redevelopment of Warrawong Plaza. Planning has yet to be approved, but early designs include 12 residential towers and a central plaza.
There’s also the renewal of Kully Bay, new preschools for Cringila, Lake Heights and Berkeley West, a new health hub at Port Kembla Hospital and a new community centre and library at King Street.
The message you should be getting is that Warrawong is getting a glow-up - and it’s not by accident.
In fact, NSW Minister for Planning and Public Spaces, and Member for Wollongong, Paul Scully, described the suburb as a “jewel in the crown”, with expectations that the 3km (give or take) between Cringila and Lake Illawarra will soon start to look very different.
“I think Warrawong and the area around there has such great potential, but it hasn't had the investment and the intention that it deserved,” he said.
“When the opportunity came along to stop the sale of the Warrawong Parklands (Kully Bay) and to connect that in with what could potentially happen around Warrawong Town Centre, with the rezoning of Warrawong Plaza for additional housing, and then BlueScope came along with what it was planning for its surplus industrial land.
“It was just too big an opportunity not to start putting those pieces of the future puzzle together.”
Planning for the future
The puzzle is far from complete, with both Warrawong Plaza and the BlueScope developments likely to be 20 to 30 years away from completion.
Still, Scully said the long-term vision has cleared the path to implement the infrastructure needed by what will be a growing cosmopolitan community.
The state government has earmarked Warrawong Town Centre as a priority site for low and mid-rise housing, with the higher density supported by its links to shops, services and transport corridors.
A draft master plan for Kully Bay and Warrawong Parklands, which stretches around to the Illawarra Yacht Club, is also nearing completion and will guide future investment in open spaces.
On top of that, work has started on the new Southern Suburbs community centre and library, adding major social infrastructure to the precinct.
“I think it’s gonna be a fantastic place to be,” Scully said.
Attracting the private sector
Private investors agree. Property prices in Warrawong have steadily climbed since 2019, when the median price was $518,000.
Of course, the Illawarra has widely been a winner when it comes to post-covid property prices, but Warrawong is among the fastest-selling suburbs in the region according to CoreLogic data.
With a healthy Lake Illawarra, a revitalised Kully Bay and thousands of new jobs close by, the streets around Northcliffe Drive are ripe for redevelopment.
“The other areas around it, of course, will be predominantly private sector investment,” Scully said.
And while he noted that there are already three and four-storey properties in the vicinity, he didn’t rule out a potential rezoning in the area “over time”.
Can it be delivered?
Warrawong’s future relies on many pieces of the puzzle falling into place, with the biggest piece of all resting with the BlueScope Industrial Lands project attracting big tenants.
Without giving away details, Scully says he’s already been approached by potential investors.
He argues Warrawong’s connections are a unique selling point. “You’ve got a six-lane highway running past the front door with a train line across the road with four stations on it … and then we’ve got a deep water port at the other end of the site.”
The condition of Lake Illawarra will be key to attracting private developers. While opening up the lake entrance in 2007 has led to the lake being an asset, it has had unintended consequences, including increased erosion.
Shellharbour City Council and Wollongong City Council have jointly called on the NSW Government to “resource and undertake a strategic business case to deliver a long-term management solution” for the entrance to Lake Illawarra.
Scully said he recognised the importance of the lake in driving the future vision for the south of Wollongong.
“We asked them what they’d like to see there … people were saying, better connection between the land and the water, a bit more activation there so you can enjoy things at different times of the day - making sure that it was a precinct that could be used not just during the day but also into the evening.”
He said protecting the lake itself is vital. “It’s making sure that the lake can function not only as a good natural ecosystem, but also has some recreational activities as part of it and that we’re balancing the use of both.”
The long game
Of course, change doesn’t happen overnight. Timelines stretch from immediate projects to multi-decade transformations. The new preschools are set for Term 1 2027.
The community health centre will open by 2026. The parklands master plan is about to be exhibited. But the BlueScope rezoning is “a multi-decade exercise.”
Scully insists patience will pay off: “I think it’s going to be a really vibrant area in the future,” he said. “It hasn’t had the investment and the attention that it deserves. Now it has the chance to shine.”
Projects driving change
BlueScope Industrial Lands: rezoning of 200 hectares, opening the way for investors and up to 30,000 jobs over the coming decades.
Warrawong Community Health Centre: under construction at the old Port Kembla Hospital, due early to mid-2026.
Warrawong Town Centre: Plans are in finalisation for the redevelopment of a 7-hectare site, including Warrawong Plaza, with 1,500 homes to be built.
Southern Suburbs Library and Community Hub: The Wollongong City Council project will be completed by mid-2027.
Warrawong and Kully Bay Parklands Master Plan: to go on public exhibition “soon,” unlocking waterfront land for day and night use.
Public Preschools: at Lake Heights, Cringila and Berkeley West, opening Term 1 2027.
Transport Upgrades: bus layover space built into the Plaza rezoning and a potential “rapid bus network” trial from Shellharbour Junction through Warrawong to Wollongong.
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