Best Suburbs in Melbourne for Off-the-Plan Property Buyers

Melbourne’s property market continues to be a hotspot for both first home buyers and investors looking to capitalise on the city’s strong growth and vibrant lifestyle. Off-the-plan purchases—where you buy a property before it’s constructed—can come with significant advantages such as stamp duty concessions and brand-new amenities.

In this article, we’ll explore some of Melbourne’s best suburbs for off-the-plan opportunities and provide an overview of how you might fund an off-the-plan deposit. We’ll also explain why Coposit—an innovative deposit payment platform—could be part of your property journey in the future, despite not being available in Melbourne just yet.

1. Why Buy Off-the-Plan in Melbourne?

1.1 Stamp Duty Savings

Buying off-the-plan in Victoria may entitle you to a stamp duty concession, especially if you’re purchasing as an owner-occupier. This concession is calculated on the value of the property at the time of contract, often excluding much of the construction cost not yet incurred. First home buyers could also be eligible for additional benefits, depending on the property’s price and government policy.

1.2 Contemporary Designs and Amenities

Off-the-plan developments in Melbourne typically incorporate modern architecture, efficient layouts, and lifestyle features such as gyms, pools, or communal rooftop spaces.

1.3 Potential for Capital Growth

If the property market appreciates while construction is underway, you could walk into immediate equity upon settlement—effectively buying at yesterday’s prices and settling in a potentially stronger market.

1.4 Flexible Payment Timelines

Developers generally require a deposit upon signing the contract, and the balance only becomes due at settlement (once construction is complete). This structure offers buyers time to organise their finances, increase savings, or explore financing options.

2. Melbourne Suburbs to Consider

2.1 Footscray

Key Highlights

• Location: 5km from the CBD, offering easy access to city amenities.
• Lifestyle: A multicultural dining scene, markets, and ongoing urban renewal projects.
• Off-the-Plan Market: High-rise towers and contemporary apartments targeting first home buyers and young professionals.
• Stamp Duty Tip: Off-the-plan concessions are often applied to new developments in Footscray, making it a budget-friendly option for eligible buyers.

2.2 Box Hill

Key Highlights

• Infrastructure: Well-developed transport links, major shopping centres, and healthcare facilities.
• Demographics: Popular among families, students, and professionals, with strong rental demand.
• New Builds: High-rise projects and boutique developments with modern amenities.

Stamp Duty Tip: While Box Hill is increasingly sought after, you may still find off-the-plan apartments qualifying for substantial stamp duty savings.

2.3 Sunshine

Key Highlights

• Revitalisation: Significant government and private investment into commercial, residential, and transport infrastructure.
• Affordability: Comparatively lower entry prices than many inner suburbs.
• Future Growth: Proximity to major transport upgrades (including the planned Airport Rail link) could boost property values.
• Stamp Duty Tip: Sunshine’s growing popularity among first home buyers means many new developments fit under price thresholds for partial or full concessions.

2.4 Clayton

Key Highlights

• Education & Research Hub: Near Monash University and leading medical facilities.
• Rental Appeal: Steady demand from students, healthcare workers, and academic professionals.
• Diverse Property Types: A blend of apartments, townhouses, and house-and-land packages.

Stamp Duty Tip: Smaller apartments or developments geared towards student accommodation often fall within concession-friendly price brackets.

2.5 Brunswick

Key Highlights

• Culture & Entertainment: Renowned for its live music, café culture, and artistic vibe.
• Transport: Multiple tram routes and train lines make for a quick commute to the CBD.
• Renovation & Conversion: Many heritage buildings are converted into modern apartments with character.

Stamp Duty Tip: Brunswick off-the-plan projects may offer buyer incentives (including stamp duty deals) to appeal to first home buyers and investors seeking strong rental returns.

3. Stamp Duty Concessions in Victoria

While the exact discounts vary, here are the key concessions you might encounter as an off-the-plan buyer:

Off-the-Plan Concession

• You’re taxed on the value of the land plus any completed construction works at the time of signing.
• The earlier you buy, the bigger the potential savings.

First Home Owner Grant (FHOG)

• Provides a lump sum payment for first home buyers purchasing a new home.
• Eligibility depends on the property price and whether you meet residency requirements.

First Home Buyer Duty Exemption or Concession

• Properties valued below a certain threshold might qualify for a full duty exemption.
• Homes above that threshold but still under a higher limit might qualify for a partial concession.

Pro Tip: Always consult a solicitor, conveyancer, or qualified financial adviser to confirm how much stamp duty you’ll actually pay.

4. Funding Your Off-the-Plan Deposit

Traditional Deposit Approach

Typically, developers require around 10% of the purchase price as a deposit. The remaining balance is due at settlement, giving you time to secure a mortgage or use equity from another property.

Enter Coposit—But Not Available in Melbourne…Yet

Coposit is an Australian fintech platform that allows buyers to pay their deposit in weekly instalments while their home is being built—essentially letting you “own while you save.” The process involves:

• Search and Connect: Find off-the-plan apartments, land sub-divisions, or house-and-land packages available with Coposit.
• Get Coposit Qualified: Assess your financial situation and weekly repayment capability.
• Own While You Save: Pay instalments into a regulated trust account, tracked via the Coposit app.
• Collect Your Keys: When construction is finished, your deposit is fully paid, and it’s time to arrange a mortgage.

However, Coposit is currently not available for Melbourne projects. The Coposit team is working to expand its offerings, so stay tuned for updates if you’re interested in this payment model. In the meantime, if you’re buying off-the-plan in other Australian markets, Coposit could be a valuable tool.

5. Key Takeaways

• Leverage Concessions: Melbourne’s stamp duty concessions can save you thousands on off-the-plan properties—particularly if you’re a first home buyer.
• Choose the Right Suburb: Footscray, Box Hill, Sunshine, Clayton, and Brunswick each offer unique lifestyle advantages and potential capital growth.
• Plan Your Deposit: Traditional 10% deposits are standard, but platforms like Coposit (in other states) offer instalment-based approaches to help you save while you wait for construction to finish.
• Monitor Market Changes: Government policies and concession thresholds can shift. Keep an eye on announcements or consult professionals for the latest updates.

Ready to Explore Off-the-Plan Opportunities in Melbourne?

Even though Coposit isn’t available in Melbourne yet, you can still explore off-the-plan projects in other states that fit your budget and lifestyle. For the latest updates on Coposit’s Melbourne launch—or to stay ahead of all Coposit news, sign up for our app or newsletter. The Coposit team is doing its best to grease the wheels in Melbourne and cover the market. Soon, Coposit will be available, and you can be among the first to use this innovative solution in Melbourne!