Sydney Apartment Projects Win State Backing to Clear Pre-Sale Hurdle

Thirty-one affordable homes within The Harvey will be for low to moderate income households in one of south-west Sydney’s growing suburbs.

Advent Property Group’s $32.4 million Mason project on Strachan Street, Kingsford, will receive support for 10 of its 21 apartments.

Mason includes four affordable homes on the site close to university and hospital campuses.

The Pre-Sale Finance Guarantee aims to fast-track the delivery of thousands of new homes during the next five years through its $1-billion fund.

To date, pre-sale commitments have helped accelerate the delivery of almost 1300 new homes across NSW with more applications currently under assessment, including metropolitan and regional projects.

Metropolitan projects already supported include the 225-apartment Rozelle Village redevelopment of the former Balmain Leagues Club at Rozelle, Landream’s 280-unit Pyrmont Place at Pyrmont and the Gaby Group’s Elodie, a 30-apartment project at Westmead.

Regional projects at Orange include 50 homes at Oakstand’s Alchemy estate and Clontarf Close, a 20-home masterplanned community by Ploughmans Lane.

▲ The Harvey at Moorebank by UFN Developments will receive guarantees for 29 of its 58 apartments.

The Minister for Planning and Public Spaces Paul Scully said the Pre-guarantee was successfully fast-tracking much-needed homes across the state.

“Close to 1300 homes have been accelerated through this world-leading initiative, which is now being adopted by states across Australia as an innovative and practical initiative,” he said.

The department credits the state’s strong financial standing which provides lenders with the confidence to residential projects off the ground.

The scheme also supports affordable housing through targeted assistance for registered not-for-profit Community Housing Providers.

While the state will commit to purchasing up to 50 per cent of homes in qualifying residential projects to a maximum of $50 million per scheme, up to $80 million is available per project for affordable home providers.

The commitment limit increases to up to 75 per cent for projects with fewer than 20 homes and then up to 100 per cent for registered Community Housing Providers

A $30-million cap applies to each affordable housing project of fewer than 20 homes, however developments must include at least four homes.

Each of the state’s commitments will be at a minimum 10 per cent discount of each home’s independently assessed market value, excluding affordable housing.

The state forecasts that the guarantee will create more than 1500 jobs over five years, according to Budget papers.

To qualify, developers must complete the government’s application assessment process, which evaluates the project and the developer.