Property Council NSW Executive Director Katie Stevenson said the announcement showed the government was responding to one of the most immediate barriers to delivery – access to finance.
"This is exactly the kind of practical intervention we need right now – focused on getting projects out of the ground, not just approved," Ms Stevenson said.
"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded.
"The expansion of the Pre‑Sale Finance Guarantee will help unlock projects that are ready to go but have been held back by financing constraints."
The expanded scheme is designed to support more affordable housing, smaller developments and projects in regional NSW.
Ms Stevenson said feasibility remained central to housing delivery, saying the reality facing the sector is that projects that are not financially viable won't get built.
"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," Ms Stevenson said.
Housing Minister Rose Jackson MLC also told the event feasibility, and financing pressures remained a major constraint on getting projects moving but reiterated the government's commitment to continue to work constructively with industry to tackle these challenges.
Ms Stevenson said this was an important acknowledgement of the issues being raised by industry.
"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.
"With the Budget just days away, the focus must be on backing delivery – making sure projects stack up, finance can flow, and more homes can move from approval to construction."
The Property Council will host Inside the NSW Budget: A Conversation with the Treasurer in Sydney on 25 June.
