Buying Off-the-Plan & New Builds in WA

Since foreign buyers are currently restricted from buying established dwellings (see our FIRB guide), most end up buying a new dwelling, an apartment off-the-plan, or vacant land to build on. This guide covers what’s different about that process.

What “off-the-plan” actually means

You’re signing a contract to buy a property — usually an apartment or townhouse — before it’s built, based on plans, specifications and a display suite rather than a finished, inspectable home. “New” or “near-new” means it’s already built but never lived in. Both count as FIRB-compliant for most foreign buyers; a fully off-the-plan purchase adds construction-timeline risk that a completed new dwelling doesn’t.

Deposits and deposit bonds

Off-the-plan contracts typically require a 10% deposit at exchange, held until settlement (which might be a year or more away for a large development). If you don’t want that much cash tied up for that long, a deposit bond can substitute: you pay a bond provider a fee (commonly 1–2% of the deposit amount) and they guarantee the deposit to the developer instead of you paying it in cash upfront.

Important: a deposit bond defers the cash, it doesn’t reduce it — you still need the full amount at settlement, on top of everything else in your full cost stack.

Sunset clauses — the biggest off-the-plan-specific risk

A sunset clause sets a date by which the development must be completed and settlement must occur. If construction runs past that date, either party may be able to terminate the contract — which matters to you as the buyer because a developer facing a much higher market price for the same stock has an incentive to let a sunset clause lapse and re-sell rather than complete your contract at the original price.

Before signing, look at how advanced construction already is, how realistic the sunset date is given that, and what the contract says about extensions. Western Australia has fewer mandatory statutory protections around off-the-plan sales than some eastern states, so read this clause carefully with your settlement agent or solicitor rather than assuming a regulator will step in.

Home Indemnity Insurance

For residential building work in WA valued over $20,000, the builder must have Home Indemnity Insurance in place before they can start work or ask you for a deposit. It protects you (and future owners) if the builder dies, disappears, or becomes insolvent and can’t complete the work or fix defective work. Ask for evidence of this cover as part of your due diligence — it’s a legal requirement, not an optional extra the builder is offering you.

Staged payments vs. deposit-then-settlement

• Apartments/units off-the-plan typically follow a simple structure: deposit at exchange, balance at settlement when the building is complete and titles are issued.
• House-and-land packages more often involve staged progress payments as construction milestones are reached (slab, frame, lock-up, fixing, completion) — budget for the fact that money leaves your account progressively, not just at the end.

Due diligence before you sign

• Research the developer and builder’s track record — completed projects, on-time delivery, any history of sunset clause disputes
• Compare display/marketing materials against the actual contract specifications — inclusions can differ, and “artist’s impression” images aren’t binding
• Ask what happens if final specifications change during construction (substitutions for unavailable materials are common — check what discretion the contract gives the builder)
• Confirm Home Indemnity Insurance will be in place
• If it’s a strata development (most apartments are), understand what you’re buying into — see our strata title guide

Related reading

• FIRB Approval Guide — why most foreign buyers end up here
• Strata Title & Apartment Ownership
• Financing Guide
• Legal Process & Settlement Guide