Off-plan property can be one of the most efficient ways to enter a growing market. It can also be one of the most expensive mistakes a family makes, because the risks sit in places a brochure never shows. Before any off-plan opportunity is presented to a client, we put it through the same assessment. Most do not make it through.
Start with the developer, not the project
A well-located project from a developer with a weak delivery record is a worse proposition than a less fashionable address from a developer who hands over on time. We look at completed projects rather than launches: how long they took against the original schedule, how they were finished, and how the developer treated buyers when conditions changed.
- Completed projects in the last several years, and their delivery dates against promises
- Build quality at handover, verified on completed buildings rather than show units
- How the developer is financed, and how much depends on continued off-plan sales
- Behaviour in previous downturns: delays, renegotiations or cancellations
“The renderings tell you what a developer intends. The last five handovers tell you what a developer does.”
Understand what you are exposed to, and when
Payment plans are marketed as convenience, but they are really a schedule of exposure. The more capital committed before completion, the more the buyer depends on the developer finishing. We model how much capital is at risk at each stage and compare it against the protections available in that jurisdiction.
Illustrative example only — not based on a specific project or market data.
Escrow requirements, milestone-linked payments and registration of the purchase all change the risk profile materially. Two projects with identical prices can carry very different exposure.
Assume you may need to sell
Even buyers who intend to hold should know how they would exit. We look at resale activity for comparable completed units in the same community, the restrictions on selling before completion, and the realistic discount a seller would accept in a slower market.
| Area | What we check | Why it matters |
|---|---|---|
| Developer | Delivery record on completed projects | Completion risk sits with the buyer |
| Payment plan | Capital at risk at each milestone | Exposure before handover |
| Protections | Escrow, registration, cancellation terms | What happens if things go wrong |
| Liquidity | Resale activity for comparable units | Ability to exit on reasonable terms |
| Yield | Rents tested against realistic costs | Income assumptions are often optimistic |
| Residency | Whether the unit qualifies, and when | Off-plan status can affect eligibility |
- Area
- Developer
- What we check
- Delivery record on completed projects
- Why it matters
- Completion risk sits with the buyer
- Area
- Payment plan
- What we check
- Capital at risk at each milestone
- Why it matters
- Exposure before handover
- Area
- Protections
- What we check
- Escrow, registration, cancellation terms
- Why it matters
- What happens if things go wrong
- Area
- Liquidity
- What we check
- Resale activity for comparable units
- Why it matters
- Ability to exit on reasonable terms
- Area
- Yield
- What we check
- Rents tested against realistic costs
- Why it matters
- Income assumptions are often optimistic
- Area
- Residency
- What we check
- Whether the unit qualifies, and when
- Why it matters
- Off-plan status can affect eligibility
Match the asset to its purpose
Finally, the property has to do the job the client needs. An excellent investment unit can be a poor family home, and a unit bought for residency may not be the one with the best rental prospects. We make the trade-off explicit before a reservation is made.
About the author
Trois Advisory
Written by the Trois advisory team, drawing on client work across mobility, real estate, private markets and strategy.
