The New South Wales (NSW) state government has given its approval for a new housing development in central Wollongong, Australia.

This project marks the first of its kind to be approved under the state government's Infill Affordable Housing Bonus outside Greater Sydney, aiming to increase housing accessibility in the region.

The development, valued at nearly A$70m ($42.11m), will feature two ten-storey buildings located above a shared podium, providing 145 new homes, with 25 designated as affordable housing units.

The Smith Street Development Partnership will lead the construction at 106 and 120-122 Smith Street and 3A Charlotte Street in Wollongong.

The affordable units at the site will be managed by community housing provider Evolve Housing, ensuring they remain accessible to low- and moderate-income households for at least 15 years.

The project will offer ground-floor commercial and retail spaces, 185 car parking spaces, and will be located near public transport, schools, and other essential services.

It is expected to generate 305 jobs during the construction phase and 30 permanent jobs upon completion.

The development has been classified as a State Significant Development due to its proximity to the aforementioned opportunities.

During the public exhibition period, the proposal received three submissions, raising concerns about flood management and road infrastructure. These issues have now been addressed via the conditions of consent for the project.

The Infill Affordable Housing pathway currently has 29 projects under assessment, which could provide roughly 8,000 homes, including 2,400 affordable homes, if approved.

Since 1 July 2024, nine housing projects have been determined under the pathway, which will contribute 2,010 homes, including 536 affordable homes, upon completion.

NSW Minister for Planning and Public Spaces and Wollongong member Paul Scully said: “The need for affordable housing close to transport, jobs and amenities is not just something that needs to be delivered in Sydney, cities like Wollongong need this diversity of housing stock too.”

“This will help health workers, teachers and other front-line workers or low- to medium-income families be able to work closer to home in a modern, purpose-built development with excellent new amenities.”

In related news, last month, NSW state-owned entity Landcom proposed a plan for an additional 375 new homes in Campbelltown.