For most small developers, there's a chicken-and-egg problem at the heart of getting a project off the ground: you need finance to build, but the lender wants to see sales before they'll lend, and you're selling something that doesn't exist yet. Understanding how much you actually need to pre-sell — and who's willing to lend with less — is one of the most important pieces of the puzzle. Here's how it works in 2026.
Why lenders want pre-sales at all
A pre-sale is a signed contract to buy a dwelling before it's finished. From a lender's point of view, pre-sales are proof of demand: evidence that when your townhouses or apartments are complete, there are real buyers with real deposits waiting to settle. That's what gives the bank confidence the loan will be repaid. The more of your debt covered by pre-sale contracts, the lower the lender's risk — and the better your terms.
The number everyone asks about
There's no single fixed figure, and anyone who quotes you one without knowing your project is guessing. What's true is that the requirement moves with the market and the lender.
Major banks have, at tighter points in the cycle, wanted pre-sales covering 100% or even 120% of the debt facility. As of mid-2026, many banks have softened to somewhere in the range of 50–70% debt cover, and in some cases lower for well-located affordable housing in areas of genuine undersupply. The key phrase is qualifying pre-sales — lenders count sales that meet their criteria (arm's length buyers, adequate deposits, sound contracts), not every signature.
Your best move is to engage a development finance broker early — before you start marketing — so you know your actual target, not a generic one from the internet.
The bank vs non-bank trade-off
This is the part worth understanding, because it changes your whole launch strategy.
Banks offer the lowest rates but apply the tightest tests: higher pre-sale hurdles, more conservative gearing, and often a preference for experienced developers with a fixed-price building contract. If you can meet their pre-sale bar, they're the cheapest money.
Non-bank and private lenders frequently fund with much lower pre-sale requirements — sometimes none at all — where the project and the developer stack up. That lets you start building without waiting on the market. The trade-off is a higher rate and fees. For a first-timer who can't hit a bank's pre-sale hurdle, this can be the difference between starting and stalling — but you pay for the privilege.
The right choice depends on your numbers: sometimes paying more for finance that lets you start now beats leaving a project idle for months chasing pre-sales.
What this means for how you sell
If your finance path needs pre-sales, then your marketing isn't a "nice to have" you tackle after approval — it's on the critical path to funding. The projects that hit their pre-sale targets fastest tend to be the ones that looked credible and professional from day one: clear renders, a proper project listing, and a straightforward way for buyers to enquire and commit.
This is where small developers often undersell themselves. A buyer being asked to commit to an off-the-plan purchase is taking a leap of faith, and a thin or amateur online presence makes that leap feel riskier. A polished, professional listing does quiet but real work here — it makes early buyers comfortable enough to sign, which is exactly what unlocks your finance.
A first-timer's note on experience
Lenders also weigh your track record. First-time developers can absolutely get funded, but often at premium rates or lower gearing until you've got a completed project or two behind you. Factor that into your feasibility from the start — don't model your first project on the terms an experienced developer would get.
The takeaway
There's no magic pre-sale percentage — it depends on your lender, your market, and your experience. What's constant is that pre-sales sit at the centre of your funding, and the quality of how you present the project directly affects how fast you hit them. Line up a good broker early to understand your real number, and treat your project's presentation as part of your finance strategy, not an afterthought.
