A bold $3 billion plan would see the site bulldozed to build up to 12,000 homes if the opposition is elected in 2027.

NSW Opposition Leader Mark Speakman said Long Bay could help answer the state’s housing crisis.

“We want to turn the relic of [the] past into hope and homes for the next generation,” Speakman said today.

“We anticipate that the proceeds from this plan will be available for reinvestment in local schools, hospitals if needed, as well as for enhancing open spaces, local roads, and public transport,” stated the opposition.

About 30 per cent of the development would be for social and affordable housing.

Current inmates wouldn’t move until a new facility was built.

Illawarra on the NSW South Coast has been flagged as a possible location for a new correctional complex.

NSW Premier Chris Minns said new homes in Sydney should be built near public transport hubs.

“There’s no train station at Long Bay, there’s no train station at Maroubra,” Minns said.

“If we’re aiming to increase residential density closer to the city, it must be aligned with public transport routes to avoid repeating previous mistakes.”

In a response, opposition transport spokeswoman Natalie Ward mentioned that a Liberal government would focus on public transport solutions if Long Bay was redeveloped into residential housing.

“We will explore future transport possibilities, ensuring that immediately, similar to initiatives on the Northern beaches, there will be a rapid express bus service to connect residents from here to Kingsford and the city,” Ward explained.