How is the off-the-plan market holding up under the shadow of coronavirus?

Written by in Buying on June 16, 2020

As COVID-19 restrictions begin to lift nationwide the off-the-plan segment of the real estate market continues to perform with remarkable resilience, according to Melbourne-based Eton Property Group.

Over the past three months, buyer enquiry has remained strong, stock is turning over and the Federal government’s recently released HomeBuilder package is already generating interest from potential off-the-plan purchasers.

“We had initial concerns when the restrictions came in,” says Daniel Caspar, Director of Eton Property Group. “But thoughtfully designed product at a sensible price will always sell, even through tough times. And the lifestyle benefits of an inner-city address should never be undersold.”

Eton’s best-performing off-the-plan project in the last quarter has been Immerse Richmond with the majority of the development sold and only 7 properties remaining. Construction is commencing soon, and Caspar says that the successful campaign has been a true collaboration between Hub Property Group, architects CSA, and the Eton team.

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“I have a background in project management and developing, so we’re able to provide information to ensure every property is efficiently designed for the right target market,” says Caspar. “There’s a real need for unique, high-quality homes in Richmond and downsizers have responded. Both the apartments and skyhomes are very generous in size with the ones still available all over 100 square metres.”

During May, Eton achieved some of Richmond’s highest square metre rates with a number of Immerse’s two-level skyhomes (some with rooftop city views) selling at $13,600 per square metre. This success was generated under the shadow of restrictions, and the sales team quickly discovered that potential buyers were more comfortable communicating via email, zoom and text. In fact, the only face-to-face contact was for contract signing and finishes viewing.

“We always aim to provide an outstanding customer experience, but in the past few months we’ve been particularly proud of our capacity to renew, adapt and succeed in a turbulent environment,” Caspar says. “As the economy grows and the Federal government provides stimulus of $25,000 to qualified off-the-plan buyers, property will always sell with the right design, advice and team in place.”