The Urban Development Institute of Australia (UDIA WA) has welcomed the State Government’s announcement today of a new Pre-sale Guarantee Scheme to be delivered by Keystart, describing it as another positive step toward increasing much needed housing supply and choice.
The $250 million scheme directly responds to advocacy from UDIA WA, including recommendations outlined in our 2026–27 State Budget Submission on how Keystart can help unlock additional housing supply across Western Australia.
Under the Pre-sale Guarantee Scheme, Keystart will offer a guarantee to purchase up to 50 per cent of unsold homes in apartment or townhouse developments upon completion. This will assist projects in meeting lender pre-sale requirements to support project viability and progression to construction.
“UDIA WA has been a strong advocate for, and supporter of, Keystart exploring how its newly legislated commercial property finance function can be used to enable more housing supply across WA,” UDIA WA CEO Tanya Steinbeck said.
“Underwriting stock in medium and high density projects across Perth can improve financial viability and help bring more housing options to market,” Ms Steinbeck said.
“UDIA WA has consistently highlighted the challenges of making medium and high density projects stack up outside of premium areas under current market conditions,” Ms Steinbeck said.
“With Keystart’s transition to a GTE, it is widely recognised that the organisation has a unique capability to help unlock much needed supply.
“At a time of housing crisis, commercial products that support projects which may otherwise stall, present a valuable opportunity for Keystart to play a key role in delivering greater housing choice and increased supply,” Ms Steinbeck said.
Further action required
While welcoming the announcement, UDIA WA noted that further action is required to address the housing crisis.
“The Pre-sale Guarantee Scheme is an important piece of the puzzle however, it will not significantly shift project viability on its own,” Ms Steinbeck said.
UDIA WA’s State Budget Submission also calls for the establishment of a new mezzanine finance facility to be managed by Keystart.
“We believe that low-interest mezzanine finance would help even further to bridge feasibility gaps for shovel-ready projects, enabling more housing supply to be delivered sooner,” Ms Steinbeck said.
“Combined with the Pre-sale Guarantee Scheme, such a facility could significantly improve conditions for built-form developers to deliver a broader range of housing options across Western Australia, while also providing financial returns to Government.
“UDIA WA and our members see Keystart as a key player in helping more Western Australians access a home,” Ms Steinbeck said.
“We welcome today’s commitment, appreciate Keystart’s collaborative approach to date, and look forward to continuing to work together to develop further solutions that support the delivery of much needed housing outcomes.”
Price caps lifted
UDIA WA also welcomed updates to Keystart’s property price and income limits announced today, including an increase to the headline property price cap to $860,000 and the Urban Connect Shared Equity price limit to $800,000.
“Regularly reviewing property price caps to reflect market conditions ensures more people can access Keystart loans when they need them and that initiatives like the Pre-sales Guarantee scheme can operate as intended to facilitate diverse housing supply,” Ms Steinbeck said.
“We must continue to ensure housing remains within reach. Everyone deserves access to an appropriate, affordable home that meets their household’s needs.”
END.