Buying an Off-the-Plan Unit in Canberra

Canberra's apartment market has grown steadily over recent years, particularly around town centres like Belconnen, Gungahlin and the inner south, and a large share of new stock is sold off the plan before construction is finished. Buying an off-the-plan unit in Canberra involves everything a standard purchase does, plus a set of considerations specific to buying something that does not exist yet, sitting on land held under the ACT's distinct Crown Lease system.

What "Off the Plan" Actually Means Here

Buying off the plan means signing a contract to purchase a unit before the building, or sometimes even the site works, is complete. You are buying based on architectural plans, a schedule of finishes and a sales contract rather than a finished, inspectable property. In the ACT specifically, off-the-plan units are unit-titled properties carved out of a broader Crown Lease over the development site, which means your conveyancer needs to review both the sales contract and the underlying lease structure that will eventually apply to your individual unit.

Duty Treatment for Off-the-Plan Units

The ACT has historically offered a specific duty exemption for eligible buyers of off-the-plan units, separate from the general Home Buyer Concession Scheme, aimed at supporting buyers of new apartments and townhouses who commit to living in the property. Eligibility generally depends on being an individual buyer who intends to occupy the home as a principal residence for a minimum period after settlement. Because the eligibility settings and value limits attached to this exemption have changed multiple times over recent years, always confirm the current position through the ACT Revenue Office's off-the-plan unit duty exemption page rather than relying on a figure quoted in an older article.

Construction Timing and Sunset Clauses

Off-the-plan contracts almost always include a sunset clause, a date by which the development must reach a certain stage, typically registration of the strata or unit plan, or the developer gains the right to rescind the contract. Construction delays are common in multi-unit developments, and a sunset clause that seemed generous when you signed can become genuinely relevant if a project runs behind schedule. Have your conveyancer review the sunset clause carefully before you sign, including what notice you are entitled to and what happens to your deposit if the contract is terminated under that clause.

Reviewing the Crown Lease and Unit Plan

Because the development sits on a Crown Lease, your conveyancer should confirm the lease purpose clause permits residential use of the site, check for any outstanding development covenants tied to construction timeframes, and review the draft unit plan and any body corporate or owners corporation documents once they are available. Our guide to what the ACT Crown Lease system means for conveyancing explains this structure in more depth, but the short version for an off-the-plan buyer is that you are effectively buying a future interest carved out of a lease that does not yet exist in its final form when you sign.

Finance Considerations Unique to Off-the-Plan

Lenders generally require a valuation closer to completion rather than at the time of signing, since the finished product, market conditions and comparable sales can all shift over a long construction period. It is worth discussing with your lender early how they treat off-the-plan finance approval, including whether your pre-approval will need to be refreshed closer to settlement. A gap between your original purchase price and a lower valuation at completion is a genuine risk in a softening market, and it is worth understanding how your contract handles that scenario before you sign.

Inspecting Before Settlement

Once the building is complete, you are usually entitled to a pre-settlement inspection to check the unit matches the contracted specifications and that any defects are noted before settlement occurs. Keep a written record of anything raised at inspection, and confirm with your conveyancer how outstanding defects will be handled, whether through a retention from the purchase price, a formal defects list with the builder, or another mechanism specified in the contract. Being organised at this stage protects your position if disputes arise after you move in.

Body Corporate and Ongoing Costs

Buying into a new development also means buying into a body corporate, or owners corporation, that does not yet have an operating history. The initial budget for shared costs such as building insurance, common area maintenance and any lifts or shared facilities is usually an estimate prepared by the developer or managing agent before the building is even occupied. Ask your conveyancer to obtain the proposed body corporate budget and rules where available, and treat early estimates with some caution, since actual costs in the first year or two of a new building can differ from projections once real running costs become clear.

Weighing Off-the-Plan Against an Established Home

Off-the-plan purchases can offer advantages such as new fittings, warranty coverage on the building and, depending on current settings, a duty exemption not always available on an established purchase. Against that, you are taking on construction and timing risk that simply does not exist when buying a finished home. If you are still deciding between the two, our broader guide to off-the-plan purchase risks in Australia sets out the general risk factors that apply across the country, on top of everything specific to Canberra covered here. This article is general information rather than financial advice, and for larger commitments it is worth talking through your specific contract with your conveyancer and, where relevant, an accountant before you exchange.