The former Tweed Hospital site in Tweed Heads is set to be transformed into a major residential precinct, with plans for approximately 800 new homes aimed at addressing one of New South Wales' most severe housing shortages. The redevelopment follows the relocation of hospital services to the new Tweed Valley Hospital at Cudgen, leaving the former site available for a new community-focused purpose.
The NSW Government has transferred the former hospital land to Landcom, the state's property developer, which will oversee the redevelopment. Under the master plan, the project will provide a mix of apartments and medium-density housing designed to accommodate thousands of future residents. Up to 10 per cent of the homes are expected to be allocated as affordable housing, helping essential workers and lower-income households access accommodation in the rapidly growing Tweed region.
Housing affordability has become a major challenge across the Northern Rivers, with Tweed Heads recording one of the lowest rental vacancy rates in New South Wales. Population growth, interstate migration and limited housing supply have increased pressure on both renters and home buyers, making additional housing developments a key government priority. Community leaders have welcomed the increase in housing supply while also calling for an even greater proportion of affordable housing within the project.
Beyond new homes, the redevelopment includes plans to improve public spaces and connectivity. The proposal features expanded riverfront access, new walking and cycling paths, increased tree planting and landscaped open spaces intended to create a more accessible and environmentally friendly neighbourhood. These upgrades aim to reconnect residents with the Tweed River while enhancing the area's liveability.
Some health services currently operating from the old hospital site, including Breast Screen NSW and community health facilities, will be relocated nearby to ensure patients continue receiving essential care without disruption. The former Tweed Hospital closed after the opening of the $723 million Tweed Valley Hospital, which now provides expanded healthcare services for the growing Tweed-Byron region.
Planning for the redevelopment is expected to continue over the coming months, with a State Significant Development Application anticipated in early 2027. Subject to planning approvals, construction is expected to commence in 2029. The project forms part of the NSW Government's broader strategy to repurpose surplus government-owned land for housing, with more than 12,000 homes planned across multiple sites throughout the state.
Local officials say the redevelopment represents an opportunity to address housing demand while creating a vibrant mixed-use community close to shops, transport, schools and the Tweed River. Urban planners also believe the project will support economic growth by attracting new residents and encouraging investment in surrounding businesses and services.
If approved, the redevelopment will become one of the largest housing projects ever undertaken in Tweed Heads, helping meet growing demand while giving new life to a site that served the community as a hospital for more than 50 years.
