The NSW Government has announced that nearly 650 new homes in Sydney’s Rhodes and Auburn precincts will be fast-tracked for construction under its landmark $1 billion Pre-sale Finance Guarantee program, aimed at tackling one of the state’s biggest housing supply challenges.
The Minns Labor Government says the initiative is helping unlock approved residential developments that have remained stalled because developers were unable to secure commercial finance despite receiving planning approvals.
The announcement marks another major milestone for the housing initiative, which is designed to convert paper approvals into homes by reducing financial barriers that have delayed construction across New South Wales.
Under the scheme, the NSW Government has agreed to guarantee a portion of apartment pre-sales in two significant Sydney developments. This includes guarantees for 34 apartments within the Rhodes Bay development and 30 homes within the North Village project in Auburn, helping developers secure private financing and commence construction sooner.
The Pre-sale Finance Guarantee program addresses one of the most significant obstacles facing Australia’s housing sector—developers being unable to obtain finance until a sufficient number of properties have been pre-sold. By guaranteeing a portion of these pre-sales, the Government effectively lowers the risk for lenders and accelerates housing delivery.
The Rhodes Bay project is an $834 million State Significant Development located within Rhodes’ rapidly evolving urban renewal precinct. Once completed, the development will deliver more than 400 new apartments, including 68 affordable homes for low to moderate-income households.
The inclusion of affordable housing is expected to provide greater opportunities for essential workers, young families and residents facing increasing housing affordability pressures in Sydney’s competitive property market.
Meanwhile, the North Village development forms part of the Auburn Square precinct and represents a $223 million investment that will deliver 249 new homes. The project has been designed to create a vibrant and walkable neighbourhood featuring residential, retail and community spaces conveniently located near public transport and employment hubs.
Beyond increasing housing supply, the Auburn project is expected to contribute to the ongoing revitalisation of the local area by bringing additional residents, economic activity and investment into one of Western Sydney’s growing communities.
The NSW Government revealed that the Pre-sale Finance Guarantee program has now helped accelerate the delivery of more than 1,200 homes across New South Wales, with additional development applications currently being assessed for metropolitan and regional locations.
Over the next five years, up to $1 billion in pre-sale commitments will be provided through the revolving fund, demonstrating the Government’s continued commitment to addressing the state’s housing shortage through innovative financing solutions.
Importantly, the program has attracted national attention, with similar models now being adopted by other Australian states seeking to address housing supply constraints and improve project delivery timelines.
NSW Minister for Planning and Public Spaces Paul Scully described housing supply as one of the defining challenges facing the current generation and said governments must play a more proactive role in ensuring approved developments are actually built.
He said simply approving projects is no longer sufficient if financial barriers prevent construction from commencing. According to Minister Scully, the program is designed to remove those obstacles and get more homes delivered faster for NSW residents.
Minister Scully also noted that for too long, viable housing developments have remained stalled despite receiving approvals because developers could not secure the necessary finance to proceed.
The Government believes initiatives such as the Pre-sale Finance Guarantee are critical to meeting growing housing demand while supporting the creation of well-connected communities close to transport, services and employment opportunities.
As Sydney continues to experience significant population growth, projects such as Rhodes Bay and North Village are expected to play an important role in expanding housing supply while contributing to the long-term development of thriving and liveable communities.
With more than 1,200 homes already accelerated under the program and further developments expected to be announced in the coming months, the NSW Government is positioning the Pre-sale Finance Guarantee as a key component of its broader housing strategy for the state.
