Off-the-plan purchases can be a fantastic opportunity, especially for first-home buyers or savvy investors wanting to secure tomorrow’s home at today’s price.

With smaller deposits, potential stamp duty savings, and access to brand-new properties in high-growth areas, it’s no surprise that more buyers are considering off-the-plan options across inner-city Melbourne.

But as with any property transaction, there are important details to understand before you commit. Here’s a simple guide to buying off the plan in 2025, covering the process, key perks, and government incentives currently available.

What Does "Off the Plan" Actually Mean?

Buying off the plan means purchasing a property before it’s built, based on the developer’s plans, specifications, and artist impressions.

This is common for:

• Apartments in boutique, medium & high-density developments

• Townhouses within thoughtfully designed estates

• House-and-land packages in growth corridors

In and around Prahran, off-the-plan opportunities often come with strong architectural detail, high-end inclusions, and excellent walkability, making them highly sought after by both owner-occupiers and investors alike.

The General Process

• Expression of Interest – Secure your preferred property with a holding deposit

• Contract of Sale – Always have your solicitor/conveyancer review it before signing

• Cooling-Off Period – In Victoria, there’s a standard 3-business-day window

• Deposit – Usually 10%, but some developers accept as little as 5%

• Construction Phase – Your property is built while your deposit is held securely in trust

• Pre-Settlement Inspection – Check everything matches the agreed specifications

• Settlement – Final balance is paid, and the title transfers to your name

Stamp Duty Savings 

Victoria offers an Off-the-Plan Stamp Duty Concession for owner-occupiers, which can significantly reduce upfront costs.

• Who’s eligible? Buyers intending to live in the property as their primary residence

• How it works: Duty is calculated on the value of the land plus any completed construction at the time of contract

Example:
Purchase price: $700,000
Construction still to be completed: $200,000
Dutiable value: $500,000 → You may only pay stamp duty on the $500,000

Learn more here.

Until 21 October 2025, a new stamp duty concession applies to off-the-plan purchases in multi-lot developments (such as apartments, units, and townhouses). This applies to all buyer types, including investors and foreign purchasers; not just first-home buyers or owner-occupiers.

Key Features:

• Applies to eligible strata-subdivided properties

• No dutiable value cap

• Contracts must be signed between 21 October 2024 and 21 October 2025

• Stamp duty is calculated based on the land value and construction stage at contract date

Learn more here.

Other Things to Know

• Finance Validity — Pre-approvals can expire; reapply if settlement is more than six months away

• Valuation Gaps — Valuers may return a lower figure than the purchase price at settlement; have a buffer

• Sunset Clauses — Check what happens if construction is delayed beyond an agreed date

• Pre-Settlement Inspections — Always inspect before settlement to flag defects or discrepancies

Learn more here.

Final Thoughts

Buying off the plan can be great in certain circumstances — especially if you're looking to secure a high-quality property in a desirable location with time to save ahead of settlement.

Not all developments are equal, so it’s essential to work with trusted professionals who can help you assess the opportunity, review contracts, and guide you through each stage with confidence.

Looking for an Off-the-Plan Property in Prahran or Inner Melbourne?

At Holly & Williams, we partner with a carefully selected network of developers to bring you exclusive access to off-the-plan homes and apartments that aren't available on the open market.

Whether you're buying your first home, rightsizing, or adding to your investment portfolio, we can help you secure the right property, on the right terms.

Get in touch today to explore current opportunities or arrange a private consultation.

Disclaimer: The information in this blog is general in nature and does not constitute legal, financial, or taxation advice. While we aim to ensure the content is accurate as at May 2025, regulations, government incentives, and lending policies may change. Always seek personalised advice from qualified professionals before making property or financial decisions.