There is government risk if builders collapse, but officials say partnerships are necessary to avoid not delivering apartments.

The WA government is launching a pre-sale guarantee to convert pre-approved apartment plans into actual construction, addressing banks’ typical requirement for 50–80 percent pre-sales to secure financing.

Under the plan, Keystart will guarantee purchases of up to 50 percent of unsold units in qualifying projects, allowing developers to meet off-the-plan sale hurdles and secure construction finance.

To support the program, price caps for Keystart loans are rising: low-deposit loans up to $860,000, Urban Connect shared equity up to $800,000, and other shared equity products up to $720,000.

Officials frame the policy as an unprecedented WA intervention to fix market failure in high-density housing, essential for Perth’s growth and apartment supply.

The initiative is part of the broader May State Budget housing push, with applications opening in the latter half of the year and led by Treasurer Rita Saffioti and Housing Minister John Carey.

Guaranteed apartments sold to Keystart will be discounted from market by 10 percent in metropolitan areas and 7.5 percent in regional areas, and will be integrated into the Urban Connect shared equity program.

The WA government is underwriting up to 50 percent of off-the-plan purchases for eligible developments with a $250 million budget, aiming to back roughly 1,200 units.

The underwriting will rely on a $250 million allocation in the upcoming budget to guarantee eligible new apartment builds.

Industry and developer reactions are mixed: some applaud reduced risk and faster construction, while others warn of potential discounting of unsold stock and concerns about broader market viability and capacity constraints.

Eligibility requires at least 30 percent of units priced below median house price; Metronet precincts get priority, with regional projects receiving adjusted guarantees and discounts.

The Keystart guarantee mirrors New South Wales’ $1 billion pre-sale finance model, which has drawn strong developer interest.