Why do buyers have reservations of buying off the plan?
Australian Apartment Advocacy’s recent research has shown an all time low when it comes to buyer confidence with buying off the plan. In WA only 14% would feel extremely or very comfortable buying their apartment off the plan – on par with the national rating. But in NSW it was just 9%.
When we drilled down to find out why, we discovered that 51% of WA buyers would like a guaranteed finish time, 49% a guaranteed commencement date, 49% the expected costs to maintain the apartment, 46% that the design will not alter and 41% a display apartment – which demonstrates that there is a need to provide a high degree of certainty – and this is understandable when 61% of the WA respondents to the survey where either professionals or managers.
This means that the industry will undoubtedly now need to provide more information and reassure buyers that they are a trusted company that delivers and this will increase the level of accountability – which is good for the industry and market alike.
However, despite this reticence to buy off the plan, 58% would look to buy an apartment again when looking to relocate, over any other housing choice. Which means that completed apartments will definitely have the competitive advantage!