A $4 million grants program has been launched by the NSW Government for established manufacturers and SMEs new to the prefab housing sector, with successful companies flagged for other government projects.
NSW’s Housing Innovation in Construction Fund and the Housing Innovation Network Grants Program were launched this week to strengthen the state’s Modern Methods of Construction (MMC) sector.
The Housing Innovation in Construction Fund will provide grants worth $20,000 to $150,000 to support commercially established manufacturers to assess and adapt MMC for use in mid and high‑rise housing.
Meanwhile, grants of up to $250,000 will be delivered by the Housing Innovation Network Grants Program to help SMEs learn more about the MMC sector and to collaborate and pilot innovative housing products like digital tools, building materials and service innovations.
These reforms are under the Building Bill 2026 which will formally recognise prefabricated buildings in law for the first time and integrate MMC into the NSW approvals system.
A two-stage competitive tender process will open in the coming weeks, with experienced local and international MMC operators invited to partner with the NSW Government to develop and deliver prefabricated components and modular housing at-scale.
The government said successful proponents would need to demonstrate commercial readiness, technical capability, and have a proven track record delivering a range of building types, including medium-density housing.
NSW Minister for Planning and Public Spaces Paul Scully said supporting the expansion of modern methods of construction will help improve construction industry productivity, meaning “homes will be built faster and to a consistent, quality standard”.
Successful proponents could also provide components for a range of government projects, including schools and hospitals, according to the NSW Government.
“The program is part of a broader reform agenda to remove barriers to construction, support industry to deliver collaborative and innovative housing solutions, as well as foster a greater focus on MMC in government procurement.”
About the author
Desi Corbett
Desi is the Editor of Concrete in Australia, at the helm since December 2013, and our weekly news writer since 2016. Her expertise in this field forms part of a journalism career spanning three decades. To get in touch please email desi@corbettcomms.com