The NSW Government has unveiled proposed building reforms aimed at strengthening the state’s manufacturing capacity for modular and prefabricated homes, with officials saying the measures are designed to speed up housing delivery while maintaining construction quality.
In a news release, the New South Wales Government said the package would modernise building approvals and create a statewide framework for prefabricated construction, which is currently regulated inconsistently by local councils.
“These reforms will remove barriers to prefabricated and modular housing without compromising building quality,” Minister for Housing Rose Jackson said, adding that modern methods of construction “are central to how we build the homes of tomorrow.”
According to the Government, the changes would introduce a single approval pathway for prefabricated buildings, set clearer rules for their manufacture and installation, and align the system with the Building Code of Australia.
The Commonwealth Productivity Commission has estimated that modular construction can cut costs by up to 20 per cent and halve construction times.
Minister for Building Anoulack Chanthivong said the reforms are part of the state’s efforts to meet Housing Accord targets.
“At a time when NSW needs to build 377,000 homes by 2029 to meet housing demand, these reforms are critical to delivering the high-quality homes around the state,” he said.
Under the proposal, the Government would also streamline approvals for all housing types by removing duplication between planning and building laws, enhancing certifier accountability, and allowing minor variations during construction without requiring re-approval.
NSW Building Commissioner James Sherrard said the package would ensure all homes, including those manufactured off-site, “are compliant with the Building Code of Australia.”
Industry groups largely welcomed the proposed changes. UDIA NSW CEO Stuart Ayres said manufactured homes “must play an increasingly important role in tackling the housing crisis,” adding the reforms would make NSW a more attractive investment location.
HIA Executive Director Brad Armitage said the focus on modern construction methods and reduced red tape was essential, noting, “We need to build more homes than ever before.”
Master Builders NSW Executive Director Matthew Pollock described the reforms as “nation-leading,” saying they would help cut build times and reduce costs.
“This announcement clearly shows the Minns Government’s laser focus on removing the barriers to housing construction and not adding to regulatory red tape,” he said.
The Government intends to bring the Building Productivity Reforms to Parliament in 2026.
