Off the plan unit purchase, is it worth?

Off the plan unit purchase, is it worth?

Data shows that we are moving from a seller’s market to a buyer’s market, according to the most recent data. Real estate investors all over the country should be very happy with this development.

In other words, if you’ve ever dreamed of becoming an actual property investor, flipper, or developer, you’ll want to read on…

Despite rising inflation, the outlook for apartment sales remains upbeat, the inevitable reduction in monetary support from the US Federal Reserve, and the increasing likelihood of the RBA raising interest rates. Gia Lee’s team began investigating Off-The-Plan sales opportunities in Asia, Europe, and the United States in 2022. Their findings are summarised below:

 

The region of Asia and the Pacific

 

Dubai

 

Europe

 

USA

 

How To Get First-Time Homebuyers To Buy Off-The-Plan Apartments.

 

Asia and the pacific

Australia

 

Off-the-plan apartment sales are on the rise in Australia, thanks to consumers’ growing belief that investing in property will result in a healthy return upon completion of the project.

In 2019, I bought two units in Melbourne off the plan and received a rebate from the developer.

Queensland Sotheby’s International Realty chief executive Paul Arthur said that there was “much movement and some significant sales” from OTP buyers looking for vacation homes on the Gold Coast.

Off-the-plan projects like the nine-story seaside Mirada development in Suttons Beach, about 39 kilometres northeast of Brisbane, says CBRE managing director Paul Barratt that “really firing” in Brisbane.

I again bought a townhouse off the plan in Pimpama, Gold Coast.

Melbourne’s property values have increased by 2.4% and apartment rents by 1.4% in the last three months, respectively, following declines during the extended lockdown.

 

Dubai

According to Property Finder, off-plan property sales in Dubai are rising in 2021. According to a company statement, AED 4.95 billion, or USD 1.3 billion, was transacted in off-plan properties in August of last year.

Since December 2013, off-plan property sales in Dubai have reached an eight-year high in sales value and the highest monthly off-plan transactions since November 2019.

 

Singapore

Wee Cho Yaw’s billionaire UOL Group announced in August 2021 that it had sold more than half of a new residential condominium project in northern Singapore that was launched on the final weekend of that month.

According to the company, the Watergardens at Canberra, a 448-unit development in Canberra, sold 60% of its units during its weekend launch last August.

 

EUROPE

Household savings rates in southern Europe have risen to their highest levels in decades due to the Covid-19 restrictions in 2020 and 2021, protecting incomes to a large extent and reducing spending.

As a result, “off-plan schemes are more likely to be purchased remotely, and 50 per cent of our sales are sight unseen,” the marketing director of Affinity Spain on the Costa del Sol James Vizetelly said.

There is an increase in sales of off-the-plan apartments in Andalucia because of a reduction in property taxes and stamp duty on new constructions from 1.5 per cent to 1.2 per cent.

At the end of 2022, Greece will no longer charge a 24 per cent VAT on newly constructed homes, instead of charging only an additional 3 per cent transfer tax and decreasing annual property taxes by an average of 8 percentage points (ENFIA). Dormant buyers came back to life as a result.

In England and Wales, 33% of new home completions last year were sold off-plan, equating to 49,000 new homes, according to Hamptons’ most recent analysis from their first Off-Plan Sales Index in 2020.

In 2020, off-plan sales of new homes in London were still higher than in any other part of the country. More than half of the new homes built in the capital were sold before they were even finished. Between 90% and 95% of all new home sales in London are currently flats, which are more likely to be sold off-plan than houses.

Off-the-plan flat sales in England and Wales were also highest in Northern England. More than 80 per cent of flat completions in the North East were sold off-plan last year, while in the North West, 68 per cent were. 91 per cent of flats completed in Newcastle last year were pre-sold, with investors typically buying a large portion of the property.

 

USA

According to Statista, property sales volumes in 2020 will reach 820,000, the highest increase in recent years.

As a result, from July 2020 to August 2020, the percentage of new homes sold off-plan increased from 27.8% to 33.88%. There was also a slight increase in new house sales during the construction stage from 35.3% in July to 37.1% in August. From 36.9 per cent to 29.1 per cent, the percentage of new homes that were sold after completion decreased.

Theodora

Gia is an award-winning entrepreneur, marketing strategist, and dog-obsessed fanatic. Before entering the financial sector, Gia earned her degree in Marketing and the Media. During her time in the industry, she excelled in sales, data analysis and financial modelling.

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