The NSW Government has launched its $1 billion Pre-Sale Finance Guarantee program, calling it a world-leading response to one of the biggest barriers to getting homes built – access to finance.
Under the five-year scheme, the Government will commit up to $1 billion through a revolving fund, purchasing up to 50 per cent of homes off the plan in approved projects. Support will range from $5 million to $50 million per project, with dwellings valued up to $2 million.
The Government is now inviting developers with planning approval and indicative or binding finance, ready to commence construction within six months, to submit expressions of interest.
Property Council NSW executive director Katie Stevenson said the scheme comes at a critical time for NSW.
“The Pre-Sale Finance Guarantee is designed to break the gridlock of approved dwellings sitting idle by giving lenders greater confidence and developers more certainty. At a time when NSW faces the steep challenge of meeting its National Housing Accord target of 377,000 new homes by 2029, this is exactly the kind of practical solution we need.
“It’s encouraging to see the momentum building, with the Pre-Sale Finance Guarantee following on the heels of the introduction of the NSW Planning System Reforms Bill last week. Together, these initiatives show the NSW Government is serious about tackling feasibility and accelerating housing delivery.”
The Property Council said it will continue to work closely with Government to ensure the scheme is implemented effectively and supports reputable developers to deliver quality housing supply.
“This is a breakthrough for housing supply in NSW.
“Finance has been one of the most significant barriers holding back otherwise viable projects. Our research with Savills confirmed that developers with approvals, demand and delivery partners simply couldn’t get projects off the ground because pre-sale hurdles were unworkable.
“This Pre-Sale Finance Guarantee helps to tackle that challenge head-on,” she said.
