Former Tweed Hospital Site to Deliver 800 New Homes
Major redevelopment to ease housing pressure while creating affordable homes and improved public spaces
The former Tweed Hospital site is set to begin a new chapter, with the NSW Government announcing plans to transform the landmark property into a vibrant residential precinct featuring 800 new homes, including affordable housing, as part of a major effort to address the region’s housing shortage.
Located on the corner of Powell and Florence streets in Tweed Heads, the site will be transferred from NSW Health to Landcom, the state’s property developer, paving the way for one of the largest housing developments ever undertaken in the Tweed. Up to 10 per cent of the homes will be allocated as affordable housing, helping provide greater opportunities for essential workers and lower-income residents to remain in the area.
The announcement comes at a critical time for Tweed Heads, where the residential vacancy rate sits at just 0.8 per cent, one of the lowest in New South Wales. The tight rental market has placed increasing pressure on families, workers and first-home buyers competing for limited housing options.
In addition to delivering hundreds of new homes, the redevelopment will improve public access to the Tweed River waterfront through new pedestrian and cycling paths, while expanded tree planting and landscaped open spaces are expected to create a greener, cooler and more connected neighbourhood.
The project follows the closure of the former Tweed Hospital almost two years ago, after services transferred to the state-of-the-art $723 million Tweed Valley Hospital at Cudgen. Community health services currently operating from the old hospital site, including BreastScreen NSW and other community-based health services, will relocate nearby to ensure local residents continue receiving the healthcare they rely upon.
The redevelopment forms part of the Minns Government’s broader strategy to unlock surplus government-owned land for housing. The former hospital is one of 75 government sites identified through the State Property Audit with the potential to deliver more than 12,000 homes across New South Wales.
A State Significant Development Application is expected to be lodged in early 2027, with construction anticipated to commence in 2029, subject to planning approval.
Minister for Regional Health Ryan Park said the former hospital had served local families for more than five decades and would continue to benefit the community in a different way.
He said while healthcare had moved to the modern Tweed Valley Hospital, repurposing the site for much-needed housing would ensure the land continued serving the people of the Tweed, while nearby community health services would remain accessible.
Planning Minister Paul Scully said the development would not only increase housing supply but also deliver more public green space and better waterfront access, creating a stronger and more liveable community.
North Coast Minister Janelle Saffin described the project as a major boost for one of the state’s fastest-growing regions, saying the additional housing would help relieve pressure on the local market while transforming the historic site into a well-connected residential precinct with vibrant public spaces.
Landcom Chief Executive Officer Alexander Wendler said the organisation remained committed to increasing housing supply across the Northern Rivers, pointing to its ongoing projects in Lismore, Goonellabah and Mullumbimby as part of a broader investment in regional communities.
If approved, the redevelopment will mark one of the most significant urban renewal projects undertaken in Tweed Heads in decades, providing much-needed homes while preserving the site’s long-standing role as a place that continues to serve the local community.
