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New South Wales backs modular construction to boost housing supply

09 Jun, 2026


The New South Wales government is backing smarter, faster building techniques to tackle the housing crisis, with innovative modular terraces now taking shape in Sydney’s north-west.

Nine architecturally designed, two-storey terraces are currently being erected at Landcom’s Burdekin Road development in Schofields.

The three-bedroom homes are being delivered using modern methods of construction (MMC), where large sections of the buildings are manufactured in a controlled factory environment before being transported and craned into position on-site.

Data from the Commonwealth Productivity Commission highlights the potential of prefabricated and modular construction, estimating it can slash overall building costs by up to 20 per cent and cut traditional build times in half.

The Schofields initiative serves as a trial for the state, with construction slated for completion in August. The broader Burdekin Road precinct will ultimately deliver approximately 140 new dwellings, including terraces, manor homes, and compact housing, with at least 30 per cent designated as affordable housing.

Minister for Planning and Public Spaces, Paul Scully, said the government is pulling every lever available to increase housing supply.

“NSW needs to build more homes and we need to build them faster,” Scully said.

“Modern Methods of Construction have enormous potential to speed up housing delivery, boost productivity, and help deliver quality homes more efficiently.”

The project coincides with major legislative changes, including the Building (Approvals and Practitioners) Bill 2026.

The landmark reforms will formally recognise prefabricated buildings under NSW law, cutting red tape by integrating MMC directly into the state’s approvals system while strengthening consumer protections.

Member for Riverstone, Warren Kirby, welcomed the local investment, noting it would help key workers access quality housing sooner in a rapidly growing region.

Landcom CEO Alex Wendler said the state-owned developer is focused on pioneering diverse housing options.

“The outcomes of this trial will help inform how Landcom uses MMC in future projects as we continue working to increase housing supply where it’s needed most,” Wendler said.

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