With more than 600 homes now under guarantee across NSW and the first regional guarantees issued to two Orange projects on 27 April 2026, the Pre-Sale Finance Guarantee program has moved from policy launch into active deployment. A practical look at how the $1 billion revolving fund operates, what projects qualify, and the issuances confirmed in Pyrmont, Westmead and the Central West.
The NSW Government's Pre-Sale Finance Guarantee program launched in September 2025 as a $1 billion revolving fund operating over five years. Six months in, the program has crossed two operational thresholds: more than 600 homes are now under guarantee across NSW, and the first regional guarantees were issued to two Orange projects on 27 April 2026. Forty-five expressions of interest have been received since launch, with a further 130+ regional homes under assessment.
How the guarantee actually works
The mechanism is direct: in an approved development, the NSW Government may commit to purchase up to 50 per cent of the homes off-the-plan, valued at up to $2 million per home. The Government's published rationale is that this commitment removes lender risk on the pre-sale conditions of the project's construction finance, unlocking commercial finance and, in turn, allowing the developer to commence construction earlier than the open-market pre-sale rate would otherwise permit.
Project parameters
- Eligible projects: residential developments.
- Project-level support: $5 million to $50 million per project.
- Per-home cap: up to $2 million each.
- Off-the-plan commitment: up to 50% of homes in the project.
- Fund structure: $1 billion revolving fund over five years.
Issuances confirmed
- Pyrmont Place, Wattle Street Pyrmont (Landream): 38 of 280 apartments guaranteed, in a $900 million mixed-use project.
- Elodie, Good Street Westmead (Gaby Group): 13 of 30 apartments guaranteed, including 6 affordable homes and a childcare facility.
- Rozelle Village: 225+ apartments including 59 affordable homes, referenced as a prior commitment.
- Alchemy, Shiralee Road Orange (Oakstand): 23 of 56 homes guaranteed, in a $75.2 million project.
- Clontarf Close, Ploughmans Lane Orange: 5 of 20 homes guaranteed, in a $28.58 million project.
Why the regional milestone matters
The two Orange guarantees are the first issued to regional NSW projects. Oakstand has indicated the Alchemy guarantee allows it to advance 36 homes into immediate construction, with 20 further homes commencing within nine months. The 130+ regional homes still under assessment suggest the regional pipeline will continue to expand through the second half of 2026.
What the guarantee doesn't do
- It doesn't replace project finance. It supports the pre-sale conditions on commercial finance.
- It doesn't accelerate planning approval. DA, CC and OC pathways are unchanged.
- It doesn't bind to a particular financier. Projects continue to source their own debt.
- It is project-by-project. Assessment criteria sit with the program administrator.
What we'd flag for developers considering the program
- Off-the-plan contract drafting needs to align with the guarantee mechanism, particularly around the Government's exit conditions, sunset dates and rescission rights.
- The 50% cap is an upper bound, not a target. Where genuine market pre-sales are available, retaining open-market upside on the unguaranteed portion remains the better economic outcome.
- Affordable housing components within a guaranteed project (as in Elodie) interact with the at-purchase pricing and any inclusionary-zoning controls. Worth modelling alongside the guarantee uplift, not after.
- Where the project is on a TOD-uplifted site or within a Pathway-eligible LEP, the guarantee can be combined with the planning uplift, but the documentation overhead increases.
The program is doing what it was designed to do: converting feasibility into delivery. The substantive question for any developer is whether the bottleneck on a particular project is the pre-sale threshold or something else. If it's the threshold, the guarantee is a powerful instrument. If it's something else, the application effort is better directed elsewhere.
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