Why are we still preselling apartments rather than embracing a ‘build then sell’ model?

Andrea Sharam argues for a fundamental shift in Australian apartment development from the presale model to a build-then-sell approach. Under presales, developers sell apartments off-the-plan before construction begins, using buyer deposits to fund the build. The alternative model would see developers fund construction upfront, then sell completed apartments to buyers. Sharam contends this shift would deliver multiple benefits: builders gain additional working capital flexibility, completed apartments allow buyers to inspect quality before purchase, demand becomes more predictable and stable, and construction sites maintain consistent workforce engagement rather than feast-famine cycles. The analysis suggests build-then-sell creates conditions for better labour retention and workplace continuity in construction teams.

The presale model currently dominates Australian apartment development because it transfers financial risk and funding requirements to purchasers, allowing developers to proceed with minimal capital. Moving to build-then-sell would require structural changes to development finance, construction bonds, and market expectations. This directly affects strata outcomes—completed building quality improves when builders aren't chasing presale targets, and completed inspections reduce latent defects reaching owner corporations.