The site, on the corner of Powell and Florence streets is being transferred from NSW Health to Landcom to enable the delivery of the new homes, including up to 10 per cent affordable housing.

The new homes will be an important addition for Tweed Heads which has one of the lowest housing vacancy rates in the state at just 0.8 per cent, meaning families are competing for a small pool of homes.

Alongside the new homes, the development will also deliver improved public access to the waterfront with new shared pedestrian and bicycle paths, and increased tree canopy to help keep streets cool.

The health services currently operating on the site, which include BreastScreen NSW and several community health services are being relocated nearby so locals can keep the care they rely on.

The announcement comes almost two years after the former hospital closed following the transfer of health services to the new $723 million Tweed Valley Hospital at Cudgen.

The former hospital is one of 75 surplus government-owned sites identified through the Minns Labor Government’s ongoing Property Audit, being led by Property and Development NSW, with the potential to unlock more than 12,000 homes across the state.

The State Significant Development Application will be lodged in early 2027, with construction expected to commence in 2029, pending planning approvals.