WA to Unlock up 1,200 Homes Through Pre-Sale Guarantee

Why It Matters

By reducing financing risk for developers, the scheme accelerates new‑home delivery and expands affordable housing options for first‑time buyers in a market strained by supply shortages. It also signals a proactive state role in addressing housing affordability, potentially reshaping funding dynamics across Australia’s property sector.

Key Takeaways

• WA allocates $250 M AUD (~$165 M USD) to pre‑sale guarantee.
• Scheme can unlock up to 1,200 new apartments.
• Government guarantees purchase of up to 50% unsold units.
• Keystart buys units at 10% metro, 7.5% regional discount.
• 30% of units must be priced below REIWA median house price.

Pulse Analysis

Western Australia’s housing market has long grappled with a chronic shortage of new supply, pushing prices beyond the reach of many first‑home buyers. In response, the state budget earmarked roughly $165 million USD for a Pre‑sale Guarantee Scheme, a policy tool that directly tackles the financing bottleneck developers face when lenders demand a minimum pre‑sale threshold. By underwriting half of any unsold inventory, the government effectively de‑risks projects, encouraging developers to break ground sooner and at a larger scale.

The scheme is administered through Keystart, the state’s shared‑equity program that already helps residents purchase homes with a 2 percent deposit. Under the guarantee, Keystart steps in only if developers cannot sell units as construction progresses, purchasing the remaining stock at a 10 percent discount in metropolitan Perth and a 7.5 percent discount in regional areas. This discount not only protects the government’s exposure but also ensures that the acquired units can be offered to Keystart customers at prices below the REIWA median, fulfilling the policy’s affordability mandate. The requirement that at least 30 percent of each development be priced under this cap further embeds affordability into the supply chain.

The broader impact extends beyond the immediate 1,200 apartments the program aims to unlock. By mirroring New South Wales’ successful model—credited with delivering over 540 homes—the WA initiative could set a precedent for other jurisdictions facing similar supply‑demand imbalances. Faster project financing translates into quicker construction timelines, more jobs, and a steadier pipeline of affordable units for emerging buyers. If the scheme meets its targets, it may also stimulate private‑sector confidence, prompting additional investment in the state’s residential construction sector and reinforcing Western Australia’s commitment to housing security.