In New South Wales, many residential developments receive planning approval but never progress to construction. Rising costs, strict lending conditions, and high presale requirements from banks have created a bottleneck, leaving thousands of homes stuck on paper instead of being built.

To address this challenge, the NSW Government has announced a new Pre-Sale Guarantee Scheme, aimed at helping developers access finance sooner and accelerating the delivery of much-needed housing.

How the Scheme Works

The initiative will allow the state to underwrite up to 50% of a project’s presale requirements. By stepping in to share the risk, the government provides banks with more confidence to release funding earlier, allowing projects to move from approval to build.

Key features include:

• Coverage: Up to half of presales guaranteed by the state.
• Eligibility: Only financially sound and compliant projects will qualify, following strict vetting.
• Oversight: Independent assessment of developers and builders involved.
• Safeguards: Buyer protections remain in place to maintain market confidence.

What It Means for Builders and the Industry

This scheme has the potential to unlock thousands of approved but unbuilt homes, creating a steadier flow of projects across NSW. For builders, subcontractors, and suppliers, this means:

• More projects breaking ground and less time lost to financing delays.
• Greater stability in workloads and project pipelines.
• Rising demand for skilled workers, site managers, and project leaders.

At the same time, the scheme reinforces the importance of compliance and quality. Only those with strong records in financial responsibility, safety, and project delivery will be able to take full advantage of this opportunity.