Owing to the lower upfront costs, buying a home off-plan can be a great way to enter the property market or to start an investment portfolio, but it doesn’t come without its risks. “Knowing where to purchase and what to look out for can make all the difference when it comes to the profitability of the purchase,” says Adrian Goslett, Regional Director and CEO of REMAX Southern Africa.
Diving deeper into some of the upsides of these kinds of investments, Kim Peacock, Broker/Owner of REMAX Dolphin Realtors, outlines three key benefits of buying off-plan:
- No transfer duty (but, importantly, there are still attorney fees; many buyers aren’t aware of this)
- Modern finishes with energy efficiency built-in (meaning less maintenance and repairs that usually come with older homes)
- Lower upfront pricing with room to grow as the area develops
However, there are also risks associated with these kinds of purchases. Kobie Potgieter, Broker/Owner of REMAX Independent Properties cautions that material cost fluctuations can impact what you receive by handover.
“Also, later-phase buyers may not benefit from the same pricing that early-phase buyers enjoyed — especially if nearby plots remain undeveloped longer than expected. Those who get in early and purchase from reputable developers with clear contracts and timelines are the ones who will see significant gains. Buyers need to do their homework, act early, and prioritise developer track record and build quality over a flashy brochure,” she recommends.
Where should I buy?
“Off-plan remains a strategic play on the KZN North Coast, particularly in growth hubs like Sheffield, Shakas Head, and Ballito Central. Developments like Seaton and Zululami continue to attract buyers with their lifestyle promise and long-term capital appreciation,” says Peacock.
Another prime example in Gqeberha is Salisbury Park, where off-plan duet homes have dominated the new-build landscape over the past few years. Potgieter explains that the suburb has shown exceptional capital growth. “Buyers who purchased during the first phase of the development have seen returns that are hard to ignore. Take this real-life case: A duet purchased for R830,000 in 2016 was resold in 2021 for R1,550,000. That’s an 86% increase in value in just five years, and it doesn’t include any rental income that may have been earned in the interim,” she notes.
In the Western Cape, Allison Airey-Spengler, property practitioner at REMAX Property Associates, explains that there has been extensive development in Yzerfontein. “What was once a quaint Fisherman’s Village has developed into an emerging market with many relocating not only from Gauteng and KZN, but even from within the Western Cape itself. There is also influx of overseas investment buyers who have found Yzerfontein to be a sought-after destination. Since around 2022, there has been notable growth and a vast increase in house prices. Many in their late 40’s and early 50’s are now buying in the area as an investment for their ideal future retirement destination. Many are purchasing off-plan to secure pricing today on a property that will only be ready at a later stage.”
However, property within the Western Cape can come at a high price tag. “In the Cape and other coastal areas, building costs tend to be significantly higher than in Gauteng, driven by factors like coastal wear, stricter building regulations, and more expensive materials and labour. Gauteng, by comparison, offers more affordable construction costs, which often reflects in lower selling prices for new developments,” says Barbara Larney, Broker/Owner of REMAX Wine and Whales
That said, value isn’t based on price alone. While Cape coastal properties may carry a premium, Larney explains that they often offer higher demand, lifestyle appeal and long-term capital growth.
“Whether buying off-plan in Gauteng or the Cape, the smartest strategy is to invest in well-located developments by reputable developers, backed by clear approvals, realistic timelines and solid legal protection. In today’s market, off-plan remains a viable option but it’s no longer a blind bet. It’s a strategy that rewards informed, careful decision-making,” she concludes.
