The two waterside apartment blocks that mark the next stage in the growing Shell Cove development are underway.
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The six-story Nautilus sits right on the edge of the marina and features 116 apartments.
Construction has also started on the smaller Ancora development with 64 apartments split over two and three levels.
The Nautilus is expected to be the first to be completed, with construction finished by late next year.
"Nautilus and Ancora will welcome residents in late 2023," Frasers Property Development Director Mat Gulliver said, "and construction of the final land lots within Shell Cove is due to commence in 2023, with completion in 2024."
Mr Gulliver said with the marina now filled and housing vessels, work continued around the area with a view to completing the whole site by 2027.
"With the plans for new residential, retail and dining options progressing in the precinct, the next phase of the vision for the Town Centre moves ever closer to reality," he said.
"The ground plane of apartment buildings adjacent to the hotel will incorporate retail and commercial spaces which will effectively extend the Town Centre and further activate the public space for locals and visitors to enjoy."
Shellharbour Mayor Chris Homer said the apartments were the latest in a series of recent steps forward for the growing Shell Cove development.
The previous announcements included Oscars being picked to construct a hotel at the marina, the launch of whale watching tours and the Shellharbour Rocks the Marina music festival on June 18.
Cr Homer said council research has shown the completed boat harbour has already become an important asset to the area.
"Shellharbour City Council commissioned research to track visitor numbers to the area, which shows a 75 per cent increase in visitors in the months following the opening of the boat harbour last November," Cr Homer said.
"Since its opening in late October 2021, The Waterfront, Shell Cove has attracted over 200,000 people to the stunning harbour, marina and the local businesses here at Shell Cove."
Cr Homer said 40 per cent of visitors were Shellharbour residents visiting the cafes and restaurants near the marina.
"With more food and beverage offerings, a hotel, community centre and library all coming soon, visitors will continue to be attracted to everything The Waterfront at Shell Cove has to offer."
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