Vivien Topalovic, Property Journalist
First published 15 Oct 2026, 2:45pm
The fund will help apartment and townhouse developers clear a bank hurdle so projects can secure construction finance.
Western Australia has opened its $250 million pre-sale guarantee for apartment and townhouse developers, aiming to ease a bank financing hurdle and help unlock up to 1200 homes.
Banks typically require developers to pre-sell a set number of homes before they help finance to build a project. Meeting that threshold can take time, particularly when buyers are reluctant to commit to a home that may not be completed for years.
Applications are now open for WA's pre-sale finance guarantee scheme. Picture: Getty
A shortfall in pre-sales can delay a project or stop it from going ahead, leaving buyers in limbo.
Under the scheme, first announced in the state’s 2026-27 budget, state-backed lender Keystart will guarantee the purchase of up to 50% of a development’s unsold homes at completion. The commitment is intended to help a project meet lenders’ pre-sale requirements and secure construction finance.
If the homes are sold while construction is under way, Keystart’s commitment will be cancelled at no further cost to the developer or the state. If they remain unsold, Keystart will buy them at a discount to market value.
According to the state, the minimum discount is 10% in metropolitan areas and 7.5% in regional WA.
To qualify for the guarantee, projects must make a portion of homes available at prices at or below Keystart’s maximum purchase price for low-deposit home loans.
Regional projects will have different settings intended to support housing supply outside Perth.
Keystart will guarantee a larger share of homes — up to 60% — and apply a smaller minimum purchase discount. The scheme will also have lower minimum dwelling requirements in regional WA.
The state also plans to make eligible apartments available through the $210 million Urban Connect Shared Equity program, on the open market or through other government housing programs.
Under that program, the government takes an equity share in a home to help eligible Western Australians buy it. Buyers can pay a 2% deposit and make lower ongoing mortgage repayments.
WA housing and works minister John Carey said the initiative supports the state’s plan to build higher density and affordable housing projects in “well-serviced areas”.
"This will help more people into their first home and provide more opportunities for people to downsize,” he said.
Applications are open on an ongoing basis. Developers can find out more or apply through Keystart.
WA is among several states using purchase guarantees to try to get apartment projects moving.
NSW was the first state in Australia to launch a scheme of this kind, and had guaranteed more than 600 homes by by June 2026 . South Australia has earmarked $500 million for a similar initiative.
The pre-sale guarantee is one part of a $ 2 billion housing agreement between the WA and federal governments.
The combined investment is expected to support more than 34,000 new homes across the state, including 11,000 reserved for first-home buyers.
The package also includes a separate $250 million Keystart commercial financing facility for multi-unit developments, as well as funding for infrastructure and land development.
Are you interested in the latest in buying and building new? Check out our New Homes section.
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