Off-the-plan developments can offer an opportunity to get into an area that buyers could not otherwise afford. Apartments, generally speaking, represent a significantly cheaper entry point into the market than houses and many buyers now recognise they represent a viable alternative for getting into their preferred suburb.
For example, the Real Estate Institute of Victoria reports that Prahran's median house price was $963,500 in June, while the median unit price was $560,000.
That's already a huge difference but buyers willing to purchase an off-the-plan (OTP) unit rather than an already-built unit can find an even more affordable entry point.
Oliver Hume Real Estate Group reports that the median price for a one-bedroom OTP unit in Melbourne's inner areas — the municipalities of Melbourne, Yarra, Stonnington and Port Phillip — was $367,000 in June.
It was $511,000 for a two-bedroom OTP unit. In comparison, the REIV reports the median price for an existing one-bedroom unit in approximately the same geographical area ranged from $382,000 to $394,000 in June.
For a two-bedroom unit, the median was $548,500 to $587,50