The Minns Labor Government is turning stalled approvals into new home building, with construction of nearly 650 new homes in Rhodes and Auburn set to be fast tracked under its $1 billion Pre-sale Finance Guarantee.
The Guarantee now adopted by other Australian states, aims to tackle one of the biggest handbrakes on housing supply: projects with approval but unbuilt because developers cannot secure finance.
By providing a guarantee for commercial finance, the Minns Labor Government is turning paper approvals into diggers on site.
Under the program, the Government has agreed to guarantee 34 of the more than 400 new Rhodes Bay apartments, and 30 of 249 new homes in the North Village, Auburn project.
By guaranteeing a portion of project presales, the program reduces lender risk and unlocks private finance, so developers can build sooner rather than sit on an approval.
Rhodes Bay is an $834 million state significant development in the heart of Rhodes’ urban renewal precinct, which will include 68 affordable homes for low to moderate-income households.
North Village, a $223 million project in the Auburn Square precinct, will deliver 249 new homes and bring more residents, activity, and investment in the heart of Auburn, creating a walkable neighbourhood with homes, shops and services close to public transport and jobs.
The Pre-sale Finance Guarantee program has now helped accelerate delivery of more than 1200 new homes across NSW, with further development applications expected to unlock even more housing in metropolitan and regional areas.
Up to $1 billion in presales will be committed through the revolving fund over the next five years, as the Minns Labor Government backs its balance sheet to address the housing pressures families face across the state.
For more information about the Pre-sale Finance Guarantee, or to apply, visit the Planning website.
Minister for Planning and Public Spaces, Paul Scully said:
“Housing supply is the challenge of our generation, and meeting it means governments have to think differently, not just approve projects and hope the private sector delivers.
“For too long good projects have sat on the shelf because developers could not get finance over the line. The Pre-sale Finance Guarantee fixes that. It takes the risk off the table and gets shovels in the ground faster.
“Rhodes Bay and North Village will bring hundreds of new homes to Sydney’s pipeline, including affordable housing, and help build thriving communities close to transport, services and jobs.”
