The New South Wales government is looking to partner with construction companies to create a new modular housing factory to “turbocharge” the delivery of new homes.
It is opening a tender process for a Modern Methods of Construction Innovation Facility, where prefabricated housing modules and components could be built faster and more cheaply.
The model would involve large sections of rooms being constructed off-site in a dedicated facility before being transported to new developments across the state.
“The way we build homes has barely changed for generations,” premier Chris Minns said in a statement.
“But the housing pressures facing NSW demand new thinking, new technology and new solutions.
“That’s why we are backing modern methods of construction that can deliver high-quality homes faster, reduce construction times and help take pressure off costs.”
The model would involve large sections of rooms being constructed off-site. (Supplied: NSW government)
Partnership with private sector
Planning Minister Paul Scully said the move would help overcome the rising cost of construction, one of the main barriers to increasing housing supply.
“There can be savings of up to 20 per cent in time, and 50 per cent in cost when it comes to using modern methods of construction,” Mr Scully told the ABC.
“The New South Wales government is wanting to turbocharge the way homes are built in New South Wales by unlocking the potential modern methods of construction.”
The move, the government says, will help with the rising costs of construction. (Supplied: NSW government)
The announcement came ahead of the state government’s 2026 budget which was set to be handed down on Tuesday, but there’s no dollar value attached to the plan at this stage.
“The government is looking at what the private sector is looking for to support the establishment of one or more modern methods of construction facilities in New South Wales,” Mr Scully said.
“That could be a range of things. It could be an equity position, it could be land, it could be training, it could be a whole range of options.”
He said the facility would focus on delivering components for medium density housing projects, working within the state government’s housing pattern book — a series of new templates designed to be adopted by developers in order to bypass lengthy design and approvals processes.
Mr Scully said he was hoping to create multiple facilities around the state to deal with growing housing shortages.
“This is about making sure that we’re gearing up the private sector and hopefully creating multiple sites, multiple participants to add this new approach to delivering more homes.”
The tender process was due to open in coming weeks.
