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{{propApi.successMessage}} {{region}} Change locationPre-sale Finance Guarantee: a policy so good, we increased our forecasts
Pre-sale Finance Guarantee: a policy so good, we increased our forecasts
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“Today the NSW Government announced the first project that has received support under the Pre-sale Finance Guarantee program announced last year.
"Under the Guarantee, the Government may commit to buy, off the plan, up to 50 per cent of homes in approved developments, valued at up to $2 million each. Support can range from $5 million to $50 million per project with the Guarantee to allow developers to achieve commercial construction finance.
“After a development has received approval, you still need finance to begin construction and you can’t get finance without a certain amount of off the plan sales. In a currently flat market, the Guarantee scheme will enable a developer to access the finance required to get shovels in the ground and sales can continue during construction,” added Mr Armitage.
“HIA Economics believes this is the first policy change that will result in a tangible increase in housing supply in NSW and have revised their forecasts for housing as a result.
Multi-unit starts are projected to grow by 7.7 per cent to 28,540 in 2026 and are expected to continue increasing, to break above 30,000 per year by 2027, in light of policy changes set to help boost apartment construction.
“We commend the NSW Government on the work that has been done to reform the planning system and get shovels in the ground faster,” concluded Mr Armitage.
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