$1 billion Pre-sale Finance Guarantee open for NSW housing projects including modular

The NSW Government has launched its $1 billion Pre-sale Finance Guarantee programme, designed to accelerate housing delivery by underwriting up to half the dwellings in approved residential projects. The initiative is intended to reduce the financing risk that has delayed many projects across the state, where more than 13,000 homes have planning approval but remain unbuilt. (main image: Wild Modular home in Wollongong, the first to be occupied under the NSW Government’s modular housing program. Delivered as part of the $6.6 billion Building Homes for NSW initiative.)

Treasurer Daniel Mookhey said the scheme was central to turning approvals into completed housing. “This guarantee will give lenders greater confidence, reduce risk in the housing finance market and accelerate the delivery of new homes across NSW. This is about turning approvals into actual homes, supporting jobs, boosting housing supply and strengthening the state’s economy at the same time”.

Under the programme, the Government will commit to buying up to 50 per cent of dwellings off the plan in eligible projects, valued at up to $2 million each. Support will range from $5 million to $50 million per development, using a revolving fund to ensure completed sales recycle into further projects.

Opportunity for modular and prefabricated housing
The scheme’s design is building-method agnostic, meaning modular and offsite builders are eligible to apply if they meet the requirements for multi-residential developments. In conversation with Built Offsite, Scott Tucker, Media Manager at the Department of Planning, Housing and Infrastructure, confirmed: “If developers are constructing a project using modular housing, and it meets the criteria for multi-unit residential development, then potentially they would be eligible. The programme is not tied to a particular construction methodology; it is about the suitability of the developer and the project to access finance”.

For an industry where access to finance has often constrained growth, the Pre-sale Finance Guarantee may create new opportunities. Prefabricated and modular builders, who typically deliver faster build times with less on-site disruption, could benefit from greater certainty at the project financing stage.

Oversight and quality assurance
Planning and Public Spaces Minister Paul Scully said the measure would bring forward construction and offer the sector a much-needed reduction in financing risk. “We have more than 13,000 homes sitting there approved but construction has not commenced. This is a bad outcome for housing delivery, our economy and our communities. We’re checking capacity, credibility and capability, we want good quality homes from reputable builders, and we want them soon”.

Minister for Building Anoulack Chanthivong emphasised that quality would remain central to delivery. “As the Pre-sale Finance Guarantee supports delivering the homes our state desperately needs, the Building Commission NSW will be doing all it can to make sure those homes are well-built by trusted professionals”.

Industry also welcomed the programme. NAB Group Executive Cathryn Carver said: “This initiative will provide certainty for developers and get more houses built in NSW – which is exactly what’s needed to provide access to housing, let alone keep home ownership within reach”.

Find the NSW Pre-sale Finance Guarantee information page HERE