Modscape’s state-of-the-art Essendon Fields facility recently set the stage for a defining moment in Australia’s construction industry, as Commonwealth Bank of Australia (CBA) pledged its commitment to modular housing with a game-changing new funding model.

As the first bank to join prefabAUS, CBA is addressing a long-standing financing gap, making it easier for homebuyers to access progress payments and bringing modular construction in line with traditional home financing. This move is set to unlock scale, improve affordability, and accelerate supply, positioning prefabricated housing as a mainstream solution to Australia’s housing challenges.

The announcement at Modscape’s Essendon Fields facility reinforces Modscape’s leadership in Modern Methods of Construction (MMC) and demonstrates how offsite manufacturing is reshaping the built environment.

A Defining Moment for Modular Construction

Banks have historically been reluctant to finance prefabricated homes because construction takes place offsite, rather than on the land the lender holds as security. But with rising demand, cost pressures, and insolvencies in traditional construction, CBA now recognises the efficiency, cost certainty, and lower risk of modular building.

“When you compare prefab with traditional construction, which can take 12 to 24 months, the uncertainty is certainly reduced,” said Michael Baumann, Executive General Manager Home Buying at CBA, in an interview with the AFR.

CBA’s new policy removes a key financing barrier, ensuring buyers can now access up to 60% of the total contract price before their home is affixed to land, and up to 80% if using a bank-accredited prefab manufacturer like Modscape.

At the Modscape-hosted announcement, CBA’s Group Executive Business Bank, Mike Vacy-Lyle, reinforced the bank’s commitment:

“Prefabricated construction is fast, efficient, and can play a meaningful role in addressing Australia’s housing shortage. To date, however, everything about construction has been created with traditional, on-site work in mind. We need to rapidly reimagine how we support this industry to unlock scale and deliver more quality, sustainable homes to market sooner.”

Modscape: The Blueprint for Australia’s Modular Future

With a proven track record of delivering high-quality modular solutions, Modscape is at the forefront of this shift, demonstrating the potential of modular housing at scale.

Essendon Fields is home to Australia’s most advanced robotic manufacturing line, enabling Modscape to complete major residential and commercial projects faster, with greater precision, and with significantly reduced waste.

“We’ve installed a new robotic line at our Essendon Fields facility that plays a crucial role in delivering major projects. Prefabrication allows us to complete builds in weeks rather than months, providing a scalable and sustainable solution to Australia’s housing needs,” said Jan Gyrn, CEO of Modscape.

Modular is No Longer Niche—It’s the Future

With CBA’s involvement and growing industry support, modular construction is no longer a niche alternative—it’s a mainstream, scalable, and financially accessible solution.

At Essendon Fields, Modscape is demonstrating what’s possible, showing that investment in prefabrication can drive meaningful change and help Australia meet its ambitious housing targets.

To find out more about Modscape’s innovative approach to offsite construction, visit modscape.com.au.