NSW government unveils $1 billion scheme to accelerate apartment construction in Sydney
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Photo by Phyo Hein Kyaw
In a bold move to expedite the delivery of thousands of new homes across New South Wales, the NSW government has launched the PreāSale Finance Guarantee program. This initiative is designed to assist developers in overcoming financial barriers that often delay the commencement of residential construction projects. From Monday, 22 September, developers are invited to submit expressions of interest, marking the official start of a program that promises to reshape the landscape of Sydney’s housing market.
The PreāSale Finance Guarantee program, first announced in June 2025, allows the state government to commit to purchasing up to 50% of homes off the plan in approved projects. This commitment is aimed at helping developers secure the necessary finance to begin construction earlier than would otherwise be possible. Eligible homes under this program can be valued at up to $2 million each, with the government offering support ranging from $5 million to $50 million per project. Over the five-year lifespan of the scheme, up to $1 billion in preāsales will be committed through a revolving fund.
NSW Minister for Planning and Public Spaces, Paul Scully, hailed the initiative as a “game changer” for the industry. “We have more than 13,000 homes sitting there approved but construction has not commenced. This is a bad outcome for our housing delivery, our economy and our communities,” Scully stated. He emphasised the government’s focus on ensuring that only reputable builders with the capacity, credibility, and capability to deliver quality homes will benefit from the program. “Weāre checking capacity, credibility and capability, we want good quality homes from reputable builders, and we want them soon,” he added.
The program offers developers two options as projects progress: they can either rescind the commitments to release the funds back into the program, allowing it to support additional projects, or call on the program, whereby the NSW government purchases the homes at a discounted rate to either rent or sell them into the market. This flexibility is designed to reduce risk in the residential construction finance sector and shorten the time between project approval and construction.
Katie Stevenson, executive director of Property Council NSW, highlighted the significance of the program in tackling one of the industry’s major challenges. “Our research with Savills confirmed that developers with approvals, demand and delivery partners simply couldnāt get projects off the ground because preāsale hurdles were unworkable,” she explained. “This PreāSale Finance Guarantee helps to tackle that challenge headāon.”
The NSW building commissioner will play a crucial role in assessing applications to ensure that the scheme supports applicants who meet the required benchmarks. Developers ready to build within six months and possessing planning and indicative or binding finance approvals will be initially assessed for eligibility. Expressions of interest can now be submitted through the NSW government website.
The launch of this program comes at a critical time for Sydney’s housing market, which has been grappling with a shortage of new homes and increasing demand. By providing a financial safety net for developers, the NSW government hopes to stimulate a surge in apartment construction, ultimately addressing the housing shortfall and contributing to the state’s economic growth.
The PreāSale Finance Guarantee program is expected to attract widespread interest from developers eager to take advantage of the government’s support. As the program unfolds, it will be closely watched by industry stakeholders and potential homebuyers alike, all keen to see how this initiative might reshape the future of housing in Sydney.