Pre-sale guarantee is working in delivering more new homes

THE NSW Government is “pulling every lever” in an attempt to fast track more housing construction.

With the state’s $1 billion Pre-sale Finance Guarantee, housing projects are building momentum, including a further 300 new homes in Pyrmont and Westmead set to start construction sooner.

The Guarantee will support 38 of 280 new apartments in the $900 million Pyrmont Place project and 13 of 30 new apartments, including six affordable homes, in the Elodie development in Westmead.

Under the program, the Minns Labor Government may commit to buy, off the plan, up to 50 per cent of homes, valued at up to $2 million each, in a residential development project. Support can range from $5 million to $50 million per project, depending on need.

By guaranteeing up to half of pre‑sales, the government removes lender risk, unlocks finance and gives developers certainty to get more homes built.

Up to $1 billion in pre-sales over the next five years will be committed through the revolving fund.

NSW Treasurer Daniel Mookhey said this “is about using the NSW Budget to help the household budget”.

“In a dual cost of living and housing crisis, we are pulling every lever to support the delivery of desperately needed new homes,” he added.

“As demand for this program grows, we’re on track to support more building projects that create homes and economic opportunity right across NSW.”

Pyrmont Place will deliver a mixed-use neighbourhood, supporting the government’s wider Blackwattle Bay urban renewal plans, while Elodie will provide housing and childcare facilities on the doorsteps of the Parramatta CBD and Westmead’s emerging health and innovation district.

Since launching in October, the Pre-sale Finance Guarantee has gained extraordinary traction from industry, with 45 expressions of interest already received from developers across the state – one third of which have already been invited to participate. It is also being adopted by other states.

To date pre-sale guarantees have been issued to accelerate the delivery of more than 540 new homes, with further pre-sale guarantee requests under assessment that, if approved, could unlock construction of over 130 new homes in regional NSW.

Planning and Public Spaces Minister Paul Scully said “NSW needs new homes sooner”.

“The Pre-sale Finance Guarantee is breaking down barriers and fast-tracking the start of construction for hundreds of much-needed homes for our communities,” he said.

“It’s great to have another two guarantees in place helping build momentum in both the scheme and the housing pipeline.”