The NSW government has transferred this sought-after land from NSW Health to the state developer for a new housing precinct.
The former Tweed Hospital site in Tweed Heads is set to be transformed into 800 new homes, including up to 10% of affordable housing.
The former hospital site will include 800 new homes and shared pedestrian and bike links. Picture: Landcom
The waterfront site, on the corner of Powell and Florence streets, will be transferred from NSW Health to Landcom and is expected to include new pedestrian and bike links and more tree cover, alongside the new housing.
Located about 300 metres south of Tweed Mall, the site also offers easy access to shops, essential amenities and transport links to the Tweed Heads CBD.
The state said the project would help address the city’s housing shortage, with the vacancy rate sitting at 0.8% — one of the lowest in NSW.
The former hospital, which closed in 2024 following the transfer of services to the new Tweed Valley Hospital at Cudgen, is one of 75 surplus government-owned sites identified through the state’s Property Audit.
The audit is expected to unlock more than 12,000 homes across NSW.
While most services have moved to the new hospital, some community health providers will relocate to the Tweed town centre, while ambulance services will continue to operate from the site.
Landcom has already begun work on several of the identified projects, including build-to-rent apartments on a former WestConnex site in Sydney and a former Sydney Metro construction site in Chatswood.
The announcement follows similar moves by state and territory governments to repurpose underused land for housing, including a former CSIRO site in the ACT and Queensland’s Land Activation Program.
NSW minister for the North Coast Janelle Saffin said the project would help ease pressure in one of the state’s fastest-growing regions.
“Tweed Heads is one of the fastest-growing communities in NSW, which has placed immense pressure on local rental and housing markets. Unlocking this site to deliver 800 new homes is a massive win that will inject much-needed supply exactly where families want to live,” Ms Saffin said.
“For over half a century, this land served a vital purpose for the people of the Tweed. It is fitting that its next chapter will continue to support the community by providing secure, well-connected housing and vibrant new public spaces right on the waterfront.”
Landcom chief executive officer Alexander Wendler said the project marked a significant milestone for the site.
“This marks the beginning of an exciting new chapter for the site and demonstrates Landcom’s important role in unlocking surplus government land for much needed housing.
“Landcom has a strong commitment to the Northern Rivers region including the delivery of 50 build to rent homes and a nearby 400-home subdivision project in Lismore, and affordable housing projects in Goonellabah and Mullumbimby.”
A state significant development application is expected to be lodged in early 2027, with construction scheduled to begin in 2029, subject to planning approval.
Are you interested in learning more about buying and building new? Check out our New Homes section.
English (US) · 