Under the newly announced Pre-sale Finance Guarantee program, the state will effectively act as a committed buyer for off-the-plan apartments in approved projects. By underwriting a portion of pre-sales, the scheme is designed to help developers secure funding earlier and move projects into construction sooner.


Open to eligible developments across New South Wales, the five-year program allows the Government to commit to purchasing up to half of the apartments in a project, with individual properties capped at $2 million. Funding support per development will range between $5 million and $50 million, forming part of a broader $1 billion revolving pool allocated over the life of the initiative.


As projects progress and private buyers step in, developers can either release the Government’s commitment or proceed with the arrangement, in which case the state will acquire the dwellings at an agreed discount. These homes may then be retained as rental stock or later offered back to the market.


The move targets a key friction point in the development cycle, with many approved projects unable to commence due to challenges in achieving sufficient pre-sales. Over recent years, the lag between planning approval and construction has grown significantly, leaving thousands of approved apartments yet to break ground.
To ensure quality is maintained, applications will be assessed in consultation with the state’s building regulator, focusing on the track record and capability of both developers and builders.


With Expressions of Interest now open, the program is positioned as a catalyst to convert approvals into active construction, supporting housing supply while restoring confidence across the development and finance sectors.


Source: Planning NSW