The NSW government’s new Pre-Sale Finance Guarantee has backed its first apartment project, in a move the Property Council of Australia says proves the state can convert long‑approved developments into homes on the ground.
The guarantee is being used to support Perifa Group’s Rozelle Village redevelopment on the former Balmain Leagues Club site, which will deliver 227 apartments, including 59 affordable homes.
Property Council NSW executive director Anita Hugo (pictured) said the deal shows the scheme can cut through one of the biggest barriers to getting apartments built.
“Finance has been one of the biggest barriers holding back otherwise viable projects,” Hugo said. “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.
“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.
Hugo said the Property Council had first raised the issue at its 2024 Ministerial Roundtable with the Australian Banking Association, arguing that lenders’ pre-sale requirements were constraining supply, and that the first deal under the scheme shows its advocacy is now delivering results.
The deal comes as NSW faces intense pressure to lift apartment supply, with the state needing to deliver tens of thousands of new homes a year to meet its National Housing Accord target of 377,000 dwellings by mid‑2029 and ease housing pressures in Sydney’s established suburbs.
Under the $1 billion revolving Pre-Sale Finance Guarantee, the NSW government can agree to purchase up to 50% of homes in eligible, approved projects, providing lenders with the confidence to release construction finance sooner.
“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,” Hugo said.
Hugo welcomed the first deal but warned many more will be required if NSW is to meet its federal Housing Accord commitments.
“This is positive progress, but NSW won’t hit its Housing Accord target without many more like it,” Hugo said.
“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.”
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