Treasurer Daniel Mookhey unveiled the scheme in his third budget this week, targeting the private sector to deliver more housing. 

The government will ensure up to 5000 apartments or units are pre-sold over five years for residential projects that need a minimum number of sold dwellings before construction can commence.

Mookhey admitted the plan was not a “silver bullet” but denied that it was a “drop in the ocean”.

“It’s a strategic utilization of our state’s financial resources, meticulously planned to deliver 15,000 new homes,” he stated at this week’s press gathering.

“What this means is that industry can spend less time and resources having to convince their banks that there are buyers of these apartments and more time building them.”

Meanwhile, other industry groups hailed the scheme as a “real breakthrough”.

“Projects that tick all the boxes, planning approval, market demand, sound delivery partners, are unable to proceed because developers can’t meet unworkable pre-sale thresholds,” Property Council NSW executive director Katie Stevenson said.

“The pre-sale finance guarantee responds directly to that issue.”