A growing number of approved residential projects in NSW have been unable to proceed to construction for one reason: a shortfall in pre-sales required to satisfy lender conditions. The NSW Government’s $1 billion Pre-Sale Finance Guarantee, an Australian first, directly addresses this. It is now active, has already unlocked more than 540 new homes, and expressions of interest are open.

What the scheme does

The Government commits to purchasing off the plan up to 50 per cent of dwellings in eligible projects, valued at up to $2 million each. That commitment satisfies lender pre-sale requirements, unlocking construction finance without the Government spending a dollar upfront. Support ranges from $5 million to $50 million per project. The fund is revolving as projects complete and dwellings sell, capacity is released for new guarantees.

Who it is designed for

Projects with development approval that are shovel-ready and capable of commencing construction within six months. Developers and their delivery teams are assessed on credibility, capability, and capacity. This is a program for viable projects facing a finance barrier, not a rescue mechanism.

The most expensive thing a development site can do is sit still. An approved project that isn’t building is costing money every month, and costing more in the market opportunity it isn’t capturing.

Projects already approved

The first guarantee supported Rozelle Village, 225 apartments on the former Balmain Leagues Club site in the Inner West. This week, Pyrmont Place (280 apartments, Wattle Street) and the Elodie development in Westmead (30 apartments) were announced as the second and third recipients, with further applications under assessment.

→ If you have a site or an approved project and want to understand how architecture and design can position it for this scheme, we’d like to hear about it. Contact us at info@zanecarterarchitects.com.au or call 02 9171 3627.