Property Council NSW Executive Director Anita Hugo said the first deal showed the guarantee can cut through one of the biggest blockers to apartment construction – the pre-sale hurdle that keeps projects stalled even after planning approval.
"Finance has been one of the biggest barriers holding back otherwise viable projects. Our research with Savills found that developers with approvals, demand and delivery partners still couldn't get projects off the ground because pre-sale hurdles had become unworkable," Ms Hugo said.
"Getting the settings right on finance is just as important as getting the planning right. This guarantee is one of the clearest examples of government using its balance sheet to unlock private delivery, and we've pushed hard for it.
"The Property Council first put this issue on the table at our 2024 Ministerial Roundtable with the Australian Banking Association, because lenders' pre-sale settings had become a handbrake on supply. Today's milestone shows that advocacy has translated into action."
The first supported project – Perifa Group's Rozelle Village redevelopment on the former Balmain Leagues Club site – will deliver 227 apartments, including 59 affordable homes.
Under the $1 billion revolving Pre-Sale Finance Guarantee, the NSW Government can commit to purchase up to 50 per cent of dwellings in eligible, approved projects, giving lenders enough certainty to bring forward construction finance.
"This is exactly what the scheme was designed to do – break the gridlock where projects are approved but can't start because pre-sales don't stack up in today's market," Ms Hugo said.
"This is positive progress, but NSW won't hit its Housing Accord target without many more like it.
"The industry will do its part, but feasibility is still under pressure from costs, rates, and risk. Smart interventions like this, alongside faster planning and enabling infrastructure, are how we get more homes built sooner," Ms Hugo said.
