The NSW government has launched a $1 billion Pre-sale Finance Guarantee program aimed at accelerating housing supply by supporting developers in bringing approved projects to completion.

Eligible developers with planning and finance approvals can apply to have the government guarantee up to 50% of homes in their projects, with applications opening in October, to help secure pre-sales and reduce financing risks.

The program intends to leverage the government's financial stability to facilitate the sale of up to $1 billion in pre-sales over five years, using a revolving fund that allows the government to resell or rent purchased homes.

This initiative addresses delays in starting approved developments, with over 13,000 projects in NSW still unstarted, by providing guarantees that help meet pre-sale requirements and shorten project timelines.

The scheme is expected to boost confidence among lenders and homebuyers, supported by the Building Commission NSW to ensure homes are built to quality standards by reputable professionals.

Key officials, including Treasurer Daniel Mookhey and Planning Minister Paul Scully, emphasize that the program will support jobs, increase housing supply, and turn approvals into actual homes, addressing supply chain delays.

The initiative aims to reduce the average time from project approval to construction, which has increased by 39% over the past five years, thereby fostering greater confidence in the residential finance sector.

Eligible projects must have planning and finance approvals, with construction expected to begin within six months, and the program aims to shorten the approval-to-construction timeline.

The NSW government’s $1 billion guarantee scheme is designed to support the construction of thousands of homes, helping to meet the state's target of 377,000 new homes by 2029.

By backing developers, the program seeks to bring more approved but unstarted developments to market faster, creating jobs and boosting the local economy.

Critics argue the scheme is modest, covering only about 5,000 homes over five years, which is a small fraction of NSW’s overall housing targets.

The NSW Building Commissioner, along with Property and Development NSW, will oversee the assessment process to ensure only capable and reputable developers participate, emphasizing quality and capacity.