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Factory built solutions targeted for medium density modular housing in NSW.
The New South Wales Government is seeking private sector partners to establish a Modern Methods of Construction (MMC) Innovation Facility, linking modular manufacturing with its Pattern Book housing program in a bid to accelerate housing delivery across the state. (main image: NSW Housing Pattern Book design Semis 02 by Sibling Architecture: “The simple construction system is suited to prefabricated and standardised elements to reduce cost and construction waste.”)
Announced ahead of the 2026 NSW Budget, the initiative would support the manufacture of prefabricated housing components and modules in dedicated facilities before they are transported to development sites across the state.
NSW Premier Chris Minns said the state’s housing challenges required a different approach to traditional construction methods.
“The way we build homes has barely changed for generations,” Minns said. “But the housing pressures facing NSW demand new thinking, new technology and new solutions.”
The government is expected to open a two-stage tender process in coming weeks, seeking experienced local and international modular and prefabrication operators to partner in developing one or more manufacturing facilities. While no funding allocation has yet been announced, the government has indicated it is exploring a range of support measures, including land, training programs and potential investment arrangements.
Pattern Book designs create opportunity for offsite delivery
A major focus of the proposed manufacturing initiative will be the delivery of medium-density housing using the NSW Pattern Book designs introduced by the government last year. These standardised housing designs were developed to streamline planning approvals and reduce design costs for homeowners and developers.
According to NSW Treasurer Daniel Mookhey, the availability of repeatable housing designs creates a stronger foundation for advanced manufacturing and modular construction.
The approach reflects a growing view among policymakers that housing productivity can be improved by combining standardised designs with factory-based manufacturing processes. Prefabrication also offers potential advantages in labour efficiency, quality control and weather-related construction delays.
The proposed facility could also support the manufacture of components for public infrastructure projects, including schools and hospitals.
For Australia’s offsite construction sector, the announcement is notable because it links planning reform, standardised housing designs and manufacturing capability into a single housing delivery strategy. If realised, it would represent one of the most direct attempts by an Australian state government to support the development of a local modular construction manufacturing base.
