NSW Government Launches Pre-Sale Finance Guarantee to Accelerate Housing Construction
On 24 June 2025, the NSW Government released a policy titled Pre-Sale Finance Guarantee as part of the 2025–26 Budget. Its objective is to accelerate housing construction across the state.
Under the policy, the Government will guarantee up to 50% of approved residential housing projects to enable early commencement. It will offer between A$5 million and A$50 million in presale guarantees for each development.
This guarantee allows developers to borrow funds to build medium-density housing. If homes remain unsold, the Government will purchase the stock (up to A$50 million per development) at a discounted rate.
Applications will open by the end of 2025.
How the Pre-sale Finance Guarantee Works
- Developers with planning approval and initial pre-sales can apply for the Pre-sale Finance Guarantee, subject to lender approval.
- The NSW Government will assess projects and developers based on their credibility, capability, and capacity.
- If approved, construction must begin within six (6) months of signing the documents.
- After projects are complete and dwellings sold, the government will issue further guarantees for up to $1 billion of projects at any one time for the five (5) year duration of the program.
- If dwellings remain unsold, the developer can “call” on and trigger the guarantee. The Government will then purchase the remaining stock at a discount.
- Purchased homes may be sold, rented, or retained as affordable or social housing.
Take Advantage of Government-Backed Opportunities with Confidence
With the NSW Government’s Pre-Sale Finance Guarantee now in place, there has never been a better time for developers to fast track projects and unlock new funding pathways.
At Madison Marcus, our award-winning Property, Planning and Projects team offers end-to-end legal and strategic advisory services. From planning approvals and contract structuring to stamp duty, risk mitigation and settlements, we support developers to ensure eligibility, compliance and commercial readiness for initiatives like this.
If you’re looking to maximise the value of your next development, book a consultation today.
Let us help you turn policy into profit.
Contact our Property Law and Development experts now to capitalise on these government programs before application windows close.
References and Further Reading
-
NSW Government Media Release – Accelerating housing with world-leading Pre-sale Finance Guarantee
https://www.nsw.gov.au/ministerial-releases/accelerating-housing-world-leading-pre-sale-finance-guarantee -
NSW Planning – Pre-sale Finance Guarantee Policy Details
https://www.planning.nsw.gov.au/policy-and-legislation/housing/pre-sale-finance-guarantee -
NSW Budget 2025–26 Overview
https://www.budget.nsw.gov.au/2025-26/budget-papers/overview -
Budget Media Release PDF
https://www.budget.nsw.gov.au/sites/default/files/2025-06/nsw-budget-2025-26-mr-accelerating-housing-with-world-leading-pre-sale-finance-guarantee.pdf -
Australian Financial Review – NSW Budget 2025–26 Coverage
https://www.afr.com/policy/economy/nsw-budget-2025–26-housing-measures
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This article is provided for general informational purposes only and does not constitute legal advice. While every effort is made to ensure the accuracy of the information provided, Madison Marcus Law Firm makes no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the content. Readers are advised to seek professional legal advice tailored to their specific circumstances before taking any action based on this information. Madison Marcus Law Firm accepts no liability for any loss or damage incurred as a result of reliance on the information presented herein.
