Despite economic uncertainty and rising construction costs, off-plan property sales remain a popular choice for South African buyers. But with shifting market conditions and more cautious consumers, is buying off-plan still a smart investment?
According to Antonie Goosen, principal and founder of Meridian Realty, off-plan buying can offer excellent value, if buyers do their homework, choose reputable developers, and understand the risks involved.
“Off-plan is not a one-size-fits-all solution,” says Goosen. “It’s ideal for buyers who want to lock in today’s prices and customise their homes, but it’s not without pitfalls. In this market, due diligence is absolutely critical.”
The Pros: Why Buyers Still Choose Off-Plan
Goosen says the appeal of off-plan buying lies in the combination of affordability, modern features, and long-term value. “One of the biggest drawcards is that you often pay no transfer duty, which can save buyers a substantial amount—especially in the R2 million and up bracket,” he explains. “You also get a brand-new home built to the latest energy and design standards, often in secure developments with lifestyle amenities.”
For investors, buying off-plan means securing property at today’s prices, with the potential for capital growth by the time the development is complete. “In well-positioned developments, buyers can benefit from value appreciation during the build period,” says Goosen. “That said, this only applies in developments where demand is high and the developer has a strong track record.”
The Risks: What Buyers Need to Watch Out For
In the current market, Goosen warns that not all off-plan opportunities are equal.
“We’re seeing some buyers burned by delays, unfinished projects, or hidden costs,” he cautions. “The key is to assess the financial health and reputation of the developer before signing anything.”
He advises asking the following questions:
- Has the developer completed other projects on time and to standard?
- Is the project fully approved and financed?
- Are the building timelines realistic, and what penalties are in place for delays?
- What exactly is included in the purchase price—fixtures, finishes, landscaping?
“Buyers must read the fine print, and they shouldn’t be afraid to ask tough questions,” Goosen says. “If something feels vague or rushed, walk away.”
He also notes that interest rate fluctuations can affect affordability by the time occupation arrives.
“When buying off-plan, you’re committing to a future financial obligation,” he says. “If rates rise significantly over the build period, monthly repayments could end up much higher than expected. Pre-approval is useful, but budget with margin for change.”
Who Is Off-Plan Best Suited For?
Goosen believes off-plan buying works best for buyers with flexibility and a long-term view.
“If you don’t need to move in immediately and are comfortable with some uncertainty, it can be a brilliant way to get into a sought-after development,” he says. “It’s especially appealing for young professionals, first-time buyers, and investors with a clear strategy.”
Final Thought
So, is off-plan still a smart investment?
“Yes, but only if the fundamentals are sound,” Goosen concludes. “Buy from a reputable developer, in a desirable location, with strong demand. If all those boxes are ticked, off-plan buying can offer excellent value. Just don’t go in blind.” At Meridian Realty, Goosen says his team regularly helps buyers assess development opportunities and understand the real risks and returns involved.
“We believe in being honest with our clients. Off-plan has its place in any smart portfolio, but as with all property decisions, knowledge is your most powerful asset.”
