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Government and institutional investors collaborate for modular and prefabrication construction financing solutions.
On Friday, 22 November, Canberra became the backdrop for what may be a turning point for an issue that’s long plagued the modular and prefabrication construction industry – financing. Treasurer Jim Chalmers and Minister for Industry and Science Ed Husic hosted a high-level Investor Roundtable, bringing together some of the nation’s most influential investors. At the heart of the discussion was a commitment to unlocking financing for modular and prefabricated construction, an approach seen as essential for addressing Australia’s housing challenges with speed and efficiency. (main pic: Fleetwood modular housing solutions for lifestyle villages, social housing and multi-residential developments. Image credit: Fleetwood.)
A Bold Vision for Modular Housing
With nearly $3 trillion in managed capital represented, the roundtable focused on tackling the barriers that have stymied investment in modular and prefabricated housing. Treasurer Chalmers outlined an ambitious vision to construct 1.2 million new homes, emphasising that modern methods of construction like prefabrication and modular construction are vital to achieving this target.
Institutional investors, including banks and superannuation funds, pledged to collaborate with industry leaders to develop innovative financing models. A roadmap for action will be delivered by June 2025, setting clear strategies to accelerate capital flow into the sector.
The Investor Council Takes Shape
Central to the announcements was the establishment of an Investor Council under the “Front Door” investment framework. This Council, set to be operational by September 2025, will bring together key government agencies and investment bodies to ensure seamless coordination and faster capital deployment. The initiative aims to unite efforts across Housing Australia, the Clean Energy Finance Corporation, and the National Reconstruction Fund, among others.
The Council’s mission is clear: to break down silos, identify investment roadblocks, and forge partnerships that can turn bold ideas into tangible outcomes.
Making Prefabrication and Modular and Construction Easier
To further support the modular housing sector, the government unveiled plans for a Voluntary Certification Scheme. This scheme will simplify approvals for prefabricated buildings under the National Construction Code, cutting through bureaucratic delays that have often hindered progress.
Minister Husic stressed that this initiative is about more than just efficiency. “It’s about unlocking new possibilities in housing—making affordability, sustainability, and innovation the cornerstones of our construction sector,” he said.
By reducing regulatory complexity, the scheme is expected to encourage broader adoption of modular housing, scaling up production to meet rising demand.
Building Momentum from Previous Successes
The latest roundtable continues a series of discussions that have tackled pressing national priorities, including housing, energy, and social impact investments. Each meeting has brought the public and private sectors closer to a shared understanding of how to channel capital towards transformative outcomes.
Housing Meets Energy in National Strategy
In addition to modular housing, the roundtable reaffirmed investor support for Australia’s clean energy ambitions. The government’s Energy Compact, which aims to achieve 82% renewable electricity by 2030, received strong backing. Investors endorsed the Australian Energy Market Operator’s Integrated System Plan, a strategic blueprint guiding the nation’s energy transition.
Treasurer Chalmers framed the discussions as a win-win scenario. “This is about delivering the best returns for investors while meeting the critical needs of Australians,” he stated.
