Off-plan buyer demand exists – but design disconnect is costing sales
New research from Squirrel and insights agency TRA has revealed a major disconnect between home buyers and off-plan developers – highlighting why off-the-plan sales are under pressure despite broad buyer interest.
The Better Builds for Buyers study, commissioned through insights agency TRA, found that while 82% of future buyers are open to buying off-plan – that is, purchasing a home before it’s built – only 32% would seriously consider it.
Squirrel founder John Bolton (pictured) said the issue isn’t price or demand, but a lack of emotional connection and confidence in the finished product.
“A home has to be functional, of course,” Bolton said. “But once those boxes have been ticked... the deciding factor becomes, well, how would it feel to actually live here?
“The one-size-fits-all design approach we see within so many developments often makes it hard for buyers to see themselves in the space – and when that happens, they walk away.”
The findings come as first-home buyers (FHBs) continue to dominate New Zealand’s housing market. According to Cotality, they accounted for just over 26% of all property purchases nationwide in Q2 2025, supported by KiwiSaver, low-deposit loans, and prices still sitting 16% below their peak. In Wellington, the share reached 36%.
This aligns with the July 2025 mortgages.co.nz & Tony Alexander Mortgage Advisers Survey, where a net 17% of brokers said they’re seeing more FHB enquiries – positive, but well below the highs seen from August 2024 to March 2025. Lending uncertainty remains a drag, especially for borrowers with less than 20% deposits.
Home buyers need trust – and the ability to personalise
The report found that buyers are being turned off by cookie-cutter designs, limited ability to personalise layouts, and the uncertainty of buying something sight unseen.
“At the end of the day, buyers just don’t have confidence that the finished product is going to live up to what’s been promised, or even that it’s actually going to be built,” Bolton said. “They’re essentially going in blind.”
Among the top “must-haves” for prospective buyers:
- Lawn space
- Privacy features (like fencing)
- Built-in laundry
- Walk-in or built-in wardrobes
- Patios, decks, or balconies
- Tool and outdoor equipment storage
Even small customisation options – like adding a desk nook – were shown to significantly improve buyer confidence and emotional connection.
Visual reassurance and natural connection matter
The Squirrel research highlighted that home buyers need more than specs and sales plans – they want to see, feel, and experience what their home will be like, particularly around light, warmth, and privacy.
“Having a sense of control, connection to nature, and visual reassurance are critical to buyers’ decision-making process,” the report found.
Daniel Talbot, TRA strategy and innovation director, said the problem isn’t that Kiwis dislike off-plan townhouses.
“Eight in 10 future home buyers are open to purchasing off-plan and six in 10 are open to off-plan townhouses,” Talbot said. “The findings suggest that the barrier to buying these homes isn't people’s willingness, but how homes are built.”
Developers urged to rethink design and presentation
Bolton said developers have a real opportunity to boost sales – if they can respond to what buyers actually want.
“It’s things like bringing builds to life through realistic visualisations and on-site experiences,” he said. “Incorporating layout and design variations into developments; and providing options for personalization, so buyers can have that sense of ownership and individuality.
“The developers who prioritise that will be the ones who win in a slower market.”
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