The NSW Government has launched a five-year, $1 billion Pre–Sale Finance Guarantee to fast-track housing construction across NSW. This program allows the government to guarantee up to 50% of approved residential projects, helping developers who struggle to meet rising pre-sale requirements, now as high as 80% in some cases, secure funding and start building sooner. Each project can receive $5–$50 million in support, with construction required to begin within six months of approval. If unsold, guaranteed homes can be bought by the state and used as affordable or social housing.

Key points:

• New Guarantee Scheme: The NSW Government will act as guarantor for up to 50% of approved housing projects to fast-track construction under a $1 billion revolving Pre-Sale Finance Guarantee.

• Application Opens End 2025: Developers with planning approval and some pre-sales can apply, with construction required to start within six months.

• Government Backstop: If homes go unsold, the government will buy them at a discount for resale, rental, or to use as affordable/social housing.

• Addressing Financing Bottlenecks: The scheme aims to solve delays caused by rising pre-sale requirements from lenders (now often 80% of dwellings).

Additional housing initiatives supporting this plan:

• 112,000 new homes from the Low and Mid-Rise Housing Policy

• 230,000 homes around transport hubs

• 53,500 homes from State Significant projects

• Planning approvals are faster, construction activity is up, and over 70,000 homes are underway

Developers can now secure funding earlier, reducing delays. Projects stuck due to pre-sale hurdles may now move forward. Applications open late 2025.