The Minns Labor Government's world-leading $1 billion Pre-sale Finance Guarantee is building momentum in the housing pipeline, with a further 300 new homes in Pyrmont and Westmead set to start construction sooner thanks to the scheme.
The Guarantees will support 38 of 280 new apartments in the $900 million Pyrmont Place project on Wattle Street, Pyrmont; and 13 of 30 new apartments, including six affordable homes, in the Elodie development on Good Street, Westmead.
This certainty will help developers, Landream and Gaby Group respectively, secure construction finance and start building sooner.
Pyrmont Place will deliver a mixed-use neighbourhood, supporting the Government's wider Blackwattle Bay urban renewal plans; while Elodie will provide housing and childcare facilities on the doorsteps of the Parramatta CBD and Westmead's emerging health and innovation district.
These commitments build on the support we've provided for the Rozelle Village revamp of the derelict former Balmain Leagues Club site which will deliver more than 225 new apartments, including 59 affordable homes.
Since launching in October, the Pre-sale Finance Guarantee has gained extraordinary traction from industry, with 45 expressions of interest already received from developers across the state - one third of which have already been invited to participate. It is also being adopted by other states.
To date pre-sale guarantees have been issued to accelerate the delivery of more than 540 new homes, with further pre-sale guarantee requests under assessment that, if approved, could unlock construction of over 130 new homes in regional NSW.
To keep the momentum building the Government has also appointed Australian property investment executives Deb Coakley and Tim Hallam as chair and deputy chair of the Pre-sale Finance Guarantee Advisory Committee.
Ms Coakley and Mr Hallam bring their expertise in governance, finance and project delivery to the committee, which assists in providing robust and independent evaluations of applications.
Under the program, the Minns Labor Government may commit to buy, off the plan, up to 50 per cent of homes, valued at up to $2 million each, in a residential development project. Support can range from $5 million to $50 million per project, depending on need.
By guaranteeing up to half of pre‑sales, the Government removes lender risk, unlocks finance, and gives developers certainty to get more homes built.
Up to $1 billion in pre-sales over the next five years will be committed through the revolving fund. For more information, or to apply, visit the Planning website.
The Pre-sale Finance Guarantee is just one of a suite of measures introduced by the Minns Labor Government to speed up the delivery of housing in NSW, including:
- Landmark reform to the State's planning legislation
- The NSW Housing Pattern Book
- The largest rezoning in the state's history
For more information, or to apply, visit the Planning website.
Treasurer Daniel Mookhey said:
"This is about using the NSW Budget to help the household budget.
"In a dual cost of living and housing crisis, we are pulling every lever to support the delivery of desperately needed new homes.
"As demand for this program grows, we're on track to support more building projects that create homes and economic opportunity right across NSW."
Planning and Public Spaces Minister Paul Scully said:
"NSW needs new homes sooner. The Pre-sale Finance Guarantee is breaking down barriers and fast-tracking the start of construction for hundreds of much-needed homes for our communities.
"It's great to have another two guarantees in place helping build momentum in both the scheme and the housing pipeline.
"I welcome the appointment of advisory committee chair, Deb Coakley, and deputy chair, Tim Hallam, who will bring outstanding leadership as the program continues to scale up."
Landream Head of Development NSW, Chris Pratt, said:
"Pyrmont Place will deliver world-class residences within a mixed-use precinct which will create significant public amenity and much-needed hotel accommodation in this part of the city.
"There has been strong demand for the development which is reflected in the pre-sales achieved to date. This, coupled with the NSW Government Pre-sale Finance Guarantee, will allow us to now accelerate the delivery of 285 new homes."
Director of Gaby Group, John Nehme, said:
"The Pre-sale Finance Guarantee has provided much-needed certainty, allowing us to move forward with confidence and accelerate the delivery of new homes in Westmead.
"Elodie represents our commitment to delivering well-designed, well-located affordable housing that supports the continued growth of the Parramatta and Westmead precinct."
