The NSW Government has launched an innovative $1 billion Pre-Sale Finance Guarantee program to address the state’s housing crisis as part of their 2025/2026 state budget. This first-of-its-kind initiative, will act as guarantor for up to 50% of pre-sales in eligible residential projects, helping developers secure construction finance for projects that might otherwise stall. Qualifying dwellings must be valued under $2 million, with government commitments of $5-$50 million per project at a minimum 10% discount to market value. Importantly, these commitments are renounceable, allowing developers to continue marketing to private purchasers. The program complements other budget measures including $1.2 billion for construction trades training and a 50% land tax concession for build-to-rent developments. Our analysis suggests this program will be highly attractive to developers and could significantly contribute to the government’s target of 75,000 new homes annually through 2030.
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