Sponsored ContentPartner ContentWed 13 May 26
Pre-Sale Finance Guarantee Unlocks NSW Housing Projects
The NSW Government’s Pre-Sale Finance Guarantee is targeting one of the most persistent barriers to residential construction, offering eligible developers up to $50 million in government-backed purchase commitments to satisfy financial lender pre-sale requirements and bring approved projects to construction sooner.
Backed by a $1-billion revolving fund, the program underwrites pre-sales on qualifying residential projects to give lender security by addressing a structural barrier between approval and construction.
The NSW Department of Planning, Housing and Infrastructure property, workplace and development deputy secretary Leon Walker said the program’s purpose was clear.
“We’re in the midst of a housing crisis. Aligning supply with demand and need is the NSW Government’s critical focus,” Walker said. “This is what the PFG delivers. It’s bringing the delivery of new homes forward.”
Closing the approval-to-construction gap
For developers who hold planning approval and have lender terms in place but cannot satisfy a lender’s pre-sale threshold, the program steps in directly.
Program chief executive Sarah Lees said the program was already accelerating project timelines and delivering tangible results for participating developers and the government.
“The feedback we’re getting from the developers who we’re supporting so far is that [the guarantee has] allowed them to bring forward construction between 6 and 18 months earlier than they had anticipated,” Lees said.
Additional gains can also be made by builders now able to commit to larger tranches of work at once, generating cost savings that would not be possible from single-home delivery.
Projects already under way
More than $128 million in commitments have been released since the program’s late-2025 launch, accelerating more than 600 new homes across metropolitan and regional NSW.
Metropolitan projects supported to date include the $285-million Rozelle Village redevelopment of the former Balmain Leagues Club at Rozelle (225-plus apartments, including 59 affordable homes), Landream’s $900-million Pyrmont Place development on Wattle Street at Pyrmont (280 apartments) and the Gaby Group’s 30-apartment Elodie project on Good Street at Westmead.
Two regional projects in Orange—Oakstand’s Alchemy development and Ploughmans Lane’s Clontarf Close project—have also recently joined the program.
Oakstand’s Alchemy development on Shiralee Road would deliver 56 new homes across multiple stages, while Ploughmans Lane’s Clontarf Close project comprises 20 house-and-land packages.
Oakstand chief executive David Cullen said the guarantee would allow the company to advance 36 homes into construction immediately, commence a further 20 within nine months and bring an additional 130 residential lots to market.
Walker said the program was designed to respond to housing demand wherever it arises.
“We’re not targeting any specific location,” Walker said. “If a developer can demonstrate there is a need for housing—and let’s face it, there’s a need in most places—that essentially meets our criteria when it comes to location.”
Eligibility and how to apply
Eligible projects must be in NSW, hold development approval, have indicative lender terms in place and be capable of commencing construction within six months of acceptance.
Support is capped at $50 million per project, with commitment levels in place to target mid-market and affordable housing stock delivery.
Expressions of interest are assessed within two weeks, with the formal application process taking about eight weeks.
Lees said applicants should already have the documentation required to apply, including marketing information, architectural designs, development approvals and indicative lending approval, as most of the material would already have been provided to lenders.
Prospective applicants can also engage the program team ahead of submitting an expression of interest, with pre-lodgement meetings with the team available by emailing pfgenquiries@dpie.nsw.gov.au.
“Early conversation with the PFG team is really important, so that developers and their lenders can understand what the PFG is all about,” Lees said.
The program’s intent to move finance-ready projects off the sidelines and into construction as quickly as possible is rapidly gaining traction.
“We’re open for business and ready to support eligible housing projects that are shovel-ready across New South Wales,” Walker said.
To find out more information, including eligibility criteria, visit the Pre-sale Finance Guarantee website.
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