Off-plan buying: Is it still safe?

The Hass Property Index for the fourth quarter of last year raised questions about the off-plan buying model that has steadily picked up, but developers say it is a non-issue, writes Ferdinand Mwongela.

With the vibrant real estate industry, developers came up with innovative methods of attracting buyers who also, with time, embraced these ideas in a previously conservative market. One such idea is the off-plan buying model that, after a slow pickup, has become the darling of both developers and buyers. Developers go into a project with the assurance of sale already made, while buyers reap from huge discounts offered at the beginning.

Houses belonging to Suraya Property Group who adopted the off-plan model of selling most its developments. The Hass Property Index has, however, raised concerns about the viability of this model, especially in the face of rising inflation. [PHOTOS: MARTIN MUKANGU/STANDARD]