Keystart is now taking applications to back presales on apartment and townhouse projects. The published rules, and a year of results across the border, show where the scheme helps and where it does not.
What opened in Western Australia this week?
Western Australia’s $250 million Pre-sale Guarantee opened for applications on 8 October.
It is run by Keystart, the state’s low deposit home lender, and it targets one problem. Banks will not release construction finance on many apartment and townhouse projects until a set share of the homes has sold off the plan.
Under the scheme, Keystart signs contracts to buy a nominated number of unsold homes once they are complete. Those contracts count toward the lender’s presale condition. If the developer finds a private buyer during construction, Keystart’s contract is rescinded.
If the homes are still unsold by the agreed date, Keystart buys them at a discount to market value. Keystart’s scheme page sets that date at generally 12 months after practical completion, with a minimum discount of 10 per cent in Perth and 7.5 per cent in regional WA.
We looked at the mechanics when the scheme was first announced in April. Now the rules are published, and some of the detail has moved.
What do the final rules require from a project?
The application form sets out the screening test. A project must be in WA, hold its planning and development approvals, and be able to reach substantial commencement within six months.
It needs an indicative term sheet from a financier that names presales as a condition of finance. It must deliver at least 10 dwellings in metropolitan Perth, or four in regional WA, where the Peel region counts as regional.
Keystart caps its commitment at $50 million per project and assesses applications on a first come, first served basis.
The fees are an application fee of $5,500 and an establishment fee that scales from $11,000 to $33,000 with the size of the commitment. Both include GST and neither is refundable. Applicants also carry their own legal and valuation costs.
Keystart is clear about what the scheme is not. It is not a loan or a construction facility, it does not replace the developer’s own equity, and Keystart pays no deposit on the homes it contracts to buy.
Has the affordability condition changed since April?
The wording has.
When the scheme was announced, Keystart said supported developments would need to sell at least 30 per cent of their homes below its headline property price limit.
The material published for the application window does not carry that figure. The scheme page and form now require a share of affordable dwellings valued at or below the maximum purchase price for Keystart’s low deposit loan, confirmed by an independent valuer, without naming a percentage.
Keystart says its commitment on each project will depend on how many affordable dwellings it delivers, its location and its public benefit. The affordable share now reads as part of the assessment rather than a fixed gate. Whether a minimum still applies in practice is not stated in the published material.
How has the same idea performed in NSW?
NSW launched its own Pre-sale Finance Guarantee in September 2025, backed by a $1 billion revolving fund intended to run until September 2030. Its first deal, Rozelle Village in Sydney’s inner west, was finalised in January 2026.
The NSW performance table, last updated on 21 July 2026, lists seven projects. Six received commitments worth a combined $179.3 million. The seventh, in Orange, ended up not needing support.
Those commitments cover 152 homes directly. The projects they sit inside total 1,213 homes.
That ratio is the real story. On average, each home the government agreed to buy helped release finance for about eight homes in total.
On average, each home the government agreed to buy helped release finance for about eight homes in total.
NSW says backing let the Rozelle developer start construction about six months earlier than a traditional presale campaign would have allowed.
The pace is still modest. At the last update, two of the six supported projects were under construction, three were at contract stage and one was ready to commence.
How does WA’s version compare?
The two schemes share the same skeleton. Both cap metropolitan support at 50 per cent of homes and $50 million per project, both set a minimum 10 per cent metro discount, and both expect construction to start within six months.
The differences are at the edges. NSW charges application fees of $10,000 to $40,000 and establishment fees of $10,000 to $50,000, plus a line fee of 1 to 1.5 per cent a year on the outstanding commitment. Keystart’s published fee schedule lists no equivalent ongoing fee.
WA leans further into the regions. The WA Government says regional projects can have up to 60 per cent of homes guaranteed, with a lower discount and a lower minimum project size.
NSW caps eligible homes by value, at $2 million, or $2.5 million for homes with three or more bedrooms. Its current rules also allow up to 75 per cent cover on projects of fewer than 20 homes. WA ties eligibility to its own affordable price limit instead.
South Australia is next in line. Its proposed Apartment Fast-Track Fund, worth $500 million, is limited to the Adelaide CBD and homes worth no more than $1 million, and went out for industry consultation in June. We covered Adelaide’s apartment guarantee fund when it was first promised.
Where do builders fit in a presale guarantee?
The guarantee is written for developers, but the finance it unlocks flows straight to builders.
A project stuck on presales is a tender that never converts. When it stalls, so does the builder’s pipeline and cash flow.
The Keystart application asks who the builder is, whether they are appointed, and what their delivery track record looks like. NSW assesses the capability, capacity and credibility of the whole delivery team, including the history and character of the builder.
That puts a builder’s record in front of the government before finance is released.
The six month start window matters too. A supported project has to get on site quickly, which shortens the gap between contract and mobilisation for builders and trades.
Completion is the other trigger. Keystart only buys a guaranteed home once it is finished, and both states are explicit that the scheme does not guarantee completion or absorb construction risk. A stalled build is not bailed out.
What is a presale requirement?
A presale requirement is a condition in a construction loan. The lender will not release construction funding until a set share of the homes in a project has sold off the plan under binding contracts. A government presale guarantee meets part of that condition by contracting to buy some of the homes, at a discount, if they are still unsold when the building is finished.
What happens next for WA projects?
Applications stay open on an ongoing basis. Keystart has not published an assessment timeframe and says it will give each applicant an indicative timeline once their form is received.
The WA Government expects the scheme to unlock up to 1,200 homes. If WA follows the NSW pattern, that number will depend less on the $250 million headline and more on how many approved projects are sitting just short of their presale target, which is the gap that matters most for housing supply in Australia.
The Good Builder Take
Presale guarantees do not create buyers. They buy time.
For medium density builders in WA, that time could turn shelved projects back into live work over the next year. The early NSW numbers are encouraging, but they are small, and most supported projects were still short of construction at the last count.
The real test for WA is how quickly Keystart turns applications into signed commitments, and whether the homes it backs are actually built. We will be tracking the first WA commitments as they are announced. Follow along, and tell us if a project you are pricing is waiting on presales.
Frequently asked questions
It is a $250 million WA Government scheme run by Keystart. Keystart contracts to buy a nominated number of unsold homes in an eligible apartment or townhouse project on completion, so the project can meet its lender’s presale condition. If the homes sell privately during construction, Keystart’s contracts are rescinded.
Developers with WA projects that hold planning and development approvals, can substantially commence within six months, have a financier term sheet requiring presales, and deliver at least 10 homes in Perth or four in regional WA. Projects must include affordable homes priced at or below Keystart’s low deposit loan limit.
Keystart charges a $5,500 application fee and an establishment fee of $11,000 to $33,000 depending on the size of the commitment, both including GST and non refundable. Applicants also pay their own legal and valuation costs.
Both cover up to 50 per cent of homes in metro projects and cap support at $50 million per project. NSW charges higher upfront fees plus an annual line fee, and caps eligible homes at $2 million or $2.5 million. WA ties eligibility to its affordable price limit and offers higher cover in regional areas.
Related articles
- The Pre-sale Problem Has Stalled Apartment Construction for Years. Western Australia Just Put $250 Million on a Fix.
- $500 Million Pre-Sale Guarantee Fund to Fast-Track Adelaide Apartment Builds
- Cash Flow for Builders Australia
Last updated: 12 October 2026. NSW performance figures as published 21 July 2026.
General Information Only. This article provides general information only and does not constitute legal, financial or professional advice. It does not take into account your individual circumstances. Scheme rules and eligibility can change, so seek independent professional advice and check current terms with the relevant government agency before making any decision.
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