Buying off-the-plan apartments in Sydney: pros and cons

Buying your first home or investing in property in Sydney can feel overwhelming, especially when considering off-the-plan apartments. If you are a first home buyer, the thought of navigating contracts, securing financing, or trusting developers based on plans alone might be daunting. For investors, weighing potential market fluctuations, location demand, and long-term growth prospects adds layers of complexity to the decision.

In this article, we’ll walk you through the key pros and considerations of buying off-the-plan apartments in Sydney to help you decide whether it’s the right path for you.

Please note that this article provides general information and is not intended as financial advice.

 

Understanding off-the-plan purchases

What does “off-the-plan” mean?

When you buy an off-the-plan apartment in Sydney, you’re committing to the property before it’s been built. You sign a contract and pay a deposit (typically 5-10%) upfront, with the balance due once construction is completed. You’re buying based on architectural plans, renders, and developer promises.

This model has become increasingly common in high-demand suburbs like Macquarie Park in Sydney's north-west and Shell Cove on the NSW South Coast, approximately 90km south of Sydney. In these areas, securing a future property early can offer a significant advantage.

Many off-the-plan apartments are situated within masterplanned communities that promise not just a home, but a complete lifestyle. These communities are created for long-term living, with shared amenities, green spaces, and modern infrastructure. It’s also important to consider the build quality and reliability of the developer. Look for clear information about the materials, finishes and build timelines and don’t hesitate to ask questions about what makes your future home stand out.

How is it different from buying an existing apartment?

Buying an off-the-plan apartment differs from purchasing an existing apartment in several ways. Here’s a quick comparison to help you understand the key differences:

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Benefits of buying off-the-plan apartments in Sydney

1. Potential for capital growth before settlement

Sydney’s property market has seen consistent long-term growth, particularly in well-connected suburbs and masterplanned communities. This means your apartment’s value could increase before completion, depending on the market conditions.

Investing in a property is not just about chasing numbers, but about balancing market research and choosing developments with strong build quality and reliability.

2. Customisation options

One of the standout benefits of buying off-the-plan is the ability to make choices that reflect your personal style and preferences. Depending on the developer and type of product, you may be able to do these customisations:

• Kitchen benchtop materials (e.g., stone or engineered surfaces)
• Cabinetry finishes and door profiles
• Floor coverings, such as wood, tiles or carpet
• Bathroom tapware and fittings
• Splashback colours and tile patterns
• Appliance upgrades (including energy-efficient options)

These choices allow you to create a home that truly feels like your own, without the struggle of post-purchase renovations, and could enhance liveability and value over time.

3. Government incentives

If you are a first home buyer in New South Wales, you may be eligible for stamp duty concessions and other benefits when purchasing new properties, including off-the-plan apartments. These schemes are often designed to help new buyers get a foot on the property ladder. It would be a good option to check with Revenue NSW for information on schemes like the First Home Buyer Assistance Scheme (FHBAS), the First Home Owner Grant (FHOG) and more.

4. Warranties and regulatory compliance

Newly built apartments in NSW are required to meet strict building codes, ensuring they align with the latest safety, structural, and energy efficiency standards. Off-the-plan properties from reputable developers are also covered by statutory warranty schemes for protection against major defects several years after completion.

5. Lower upfront payments

Because only a deposit is required initially, you can secure a property while continuing to save or organise financing during the construction period.

This can be especially beneficial for first home buyers who may need additional time to arrange finances or meet lending requirements. It also allows investors to better manage their cash flow while securing a spot in a desirable development.

 

Key considerations before buying off-the-plan apartments in Sydney

If you are looking for off-the-plan apartments in Sydney for sale, you should consider some of the following factors:

1. Research the developer and builder

Look into the developer’s experience, past projects, delivery timelines, and customer reviews. Reputable developers are more likely to meet expectations and deadlines.

You might also want to visit completed projects or speak to existing owners in the community to get a better understanding of the developer’s attention to detail and commitment to quality.

2. Assess the location and market conditions

Buying an off-the-plan apartment in a masterplanned neighbourhood often means future-proofing your investment, as these communities are designed with long-term growth in mind.

Consider the surrounding infrastructure, transport links, schools and lifestyle amenities. Also, research how the suburb has performed historically and whether new developments are likely to increase demand. Neighbourhoods with good public transport, parks and proximity to the Central Business District are popular with buyers and renters alike.

3. Understand the contract and legal terms

Off-the-plan contracts can seem complex, so it’s important to get expert legal advice on the following before you sign them:

• Sunset clauses (the deadline for project completion)
• Deposit conditions and refund policies
• Inclusions and exclusions (what exactly comes with the apartment)
• What happens if there are delays or changes to the project?

Make sure your legal representative reviews all fine print so there are no surprises later.

4. Be aware of financial and loan conditions

Banks may not offer you unconditional loan approval until the property is near completion. Also, if the market value changes during the construction period, the final valuation may be lower than expected, potentially affecting your borrowing capacity.

Speak with your lender early and understand the conditions attached to your pre-approval. It’s wise to plan for market shifts and have a financial buffer in place.

5. Prepare for construction risks

Like any large-scale project, construction timelines can sometimes shift for new off-the-plan apartments, too. Delays can happen due to a variety of factors – weather, material shortages, or labour constraints. There’s also a chance the final build may differ slightly from marketing visuals or floor plans.

We recommend keeping in touch with the developer during the construction phase so you can be prepared, informed, and engaged every step of the way.

While many developers offer buyer portals or newsletters, Frasers Property Australia enhances the buying journey with our Property Tracker tool. This platform allows you to monitor your property's progress in real-time during construction, settlement, or moving in.

6. Your deposit is tied up

Your deposit will be held in trust until settlement, meaning it won’t be accessible for other purposes during this time. If you’re relying on that cash for other investments or plans, it’s important to factor in the lock-up period when budgeting.

 

Settlement and post-completion checks

As the build nears completion, the developer will notify you of a settlement date and the next steps. At this stage:

• Your lender will arrange for the remaining payment
• Legal teams will handle the necessary paperwork
• You’ll be invited to a pre-settlement inspection to ensure the apartment aligns with the contract’s specifications

Before you move in, you’ll be able to inspect the apartment and report any defects. These should be resolved by the developer according to the contract and warranty terms. Most contracts include a formal defects liability period, during which the builder is required to fix identified issues.

Document any issues with photos and submit them in writing. Most developers allow a formal defects liability period during which such matters will be rectified.

 

Artist’s impression

Conclusion

Buying off-the-plan apartments in Sydney can offer many benefits, such as flexibility, customisation, and the chance to secure a home in a well-built, modern community.

If you’re considering this path, you should also take your time to research developers, consult legal and financial experts, and assess your own risk comfort.

If you feel ready to explore this path further, you can browse our current residential properties across NSW, like Midtown MacPark and The Waterfront Shell Cove - or contact our local property experts.

 

Disclaimer: This material and its contents (including references to First Home Owner Grant and First Home Buyer Assistance Scheme) and any external links are provided for information purposes as a guide only and do not constitute an offer or contract or any part thereof. Its contents are subject to change at any time without notice.
Frasers Property does not make any express or implied representation or warranty that the information is accurate, complete or correct. Purchasers must make and rely on their own inquiries. June 2025.