OFF-PLAN APARTMENT SALES

The Pros & Cons of Apartment Pre-Sales in NZ Off-plan apartment buying has surged in popularity in recent years - especially in Auckland and Wellington where demand is strong but land is tight.

But is it the right move for you?  

Before you sign on a dotted line for a property that hasn’t even broken ground yet, here’s what you need to know - the good, the bad, and the occasionally ugly. 

The Upside: Why Off-Plan Works for Smart Buyers

1. Lower Entry Price Developers want early sales to secure finance — that’s where you come in. Off-plan buyers often get better pricing than those who wait for completion. It’s a chance to buy tomorrow’s apartment at today’s price.  

2. Capital Gains While You Wait If the market’s rising, your apartment could increase in value before you’ve even paid the full price. That’s growth on paper — and it can help boost your equity position at settlement.  

3. Smaller Deposit Most off-plan purchases in NZ only require a 10% deposit upfront. That gives you time to arrange finance or sell another property before settlement, without tying up your cash.  

4. Customisation Early buyers often get first pick of the floorplans and finishes. Want the corner unit? Fancy timber floors over carpet? Get in early and you might get your way.  

5. Everything’s Brand New New build = less maintenance, better insulation, higher energy efficiency, and compliance with the latest building code. It’s warm, dry, and built to modern standards. 

The Risks: Why Off-Plan Isn’t For Everyone

1. Delays Are Common Builds can be delayed by weather, finance issues, labour shortages, or council bottlenecks. That 18-month timeline? Might stretch to 24. If your plans are time-sensitive, build that buffer in.  

2. Market Could Dip If the market drops before settlement, you could end up with a property worth less than what you agreed to pay. That’s a tough position if you need bank finance at settlement.  

3. Limited Control You’re buying off plans — not photos. What you see in the glossy brochure might not be exactly what you get. Room sizes, views, or finishes can differ slightly from expectations.  

4. Developer Risk If the developer goes bust before completion, your project could stall — or collapse entirely. Your deposit is usually held in trust, but still: choose proven developers, not cowboys.  

5. Lending Rules Can Shift Just because you qualify for a mortgage today doesn’t mean you will at settlement. Interest rates, bank policies, and your own financial situation can all change during the build.  

So, Should You Buy Off-Plan? Off-plan is a smart move if:  

• You have financial flexibility and a long-term view

• You’re buying in a rising or stable market  

• You trust the developer and the location  

• You’ve got time on your side  

It’s not for you if:  You need to move in urgently  

• You’re banking on a quick flip in a flat market

• You can’t tolerate uncertainty  

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