A grand plan is underway to build more homes in the seaside south of Adelaide suburb Port Stanvac.

The site of the former oil refinery is set to undergo drastic changes that is expected to create another beachside suburb in Adelaide’s sprawling south.

About 8000 people are expected to live in the new-look area and the local economy is expected to get a $508 million boost.

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The release of the Master Plan and the new code amendment means planning for the development site can proceed.

The new code amendment seeks to unlock the 230-hectare area, allowing for up to 3600 new dwellings that will include apartments, town houses, aged care and serviced accommodation.

The Malinauskas-led government, developer MAB and site owner Exxon Mobil, last year announced plans to unlock the site for homes, open space, employment, community facilities, and beach access to what is a currently inaccessible stretch of Adelaide’s coast.

Minister for Housing and Urban Development, Nick Champion, said, “The transformation of Port Stanvac will set a new benchmark for how we can repurpose underutilized land.”

“We are committed to ensuring that this development not only delivers homes and jobs, but also returns a beautiful stretch of our coastline to the community for everyone to enjoy.

“With the initiation of this code amendment, the new Port Stanvac goes from being a concept to a work in progress.”

About 64 hectares of the area will be dedicated to areas for retail and commercial activity, creating 1700 new jobs.

The development will also unlock 40 hectares of coastline, while more than 30 per cent of the site will be an open space.

City of Onkaparinga mayor Moira Were described the development of Port Stanvac as a “unique, one-off opportunity to drive new economic, social and environmental benefits to Onkaparinga and the state”.