12 Oct Essential Questions For New Apartment Buyers

This article was updated in April 2026 to reflect recent changes to building regulations and off-the-plan apartment purchasing in NSW.

When buying a new apartment — whether newly built or off the plan — conducting thorough due diligence is essential. With strata title, you are purchasing your individual residence, but you are also part of a larger complex. In the event of building issues, owners collectively bear the responsibility for rectification.

Builders warranty insurance covers structural defects for six years and non-structural defects for two years. In NSW, developers are also required to lodge a 2% strata building bond for new apartment developments. This bond is held for two years after completion and is used to fund rectification of defects identified during this period. Buyers should confirm the bond has been lodged and review any interim defect reports.

Older buildings come with a documented history and comprehensive strata reports, providing insights into both the financial stability and physical condition of the building. Newly constructed or off-the-plan apartments, by contrast, require more thorough upfront research — and that research is the focus of this article.

In recent years, increased regulatory oversight has placed greater accountability on developers and builders, with more rigorous compliance checks prior to occupation certificates being issued. There has also been a notable shift in buyer awareness: well-publicised defect cases, tighter lending criteria, and rising strata insurance costs have all contributed to a more cautious and informed market. Banks and insurers have become more selective, with some developments subject to lending restrictions based on perceived risk. This makes due diligence more important than ever.

iCIRT — A Useful Starting Point

iCIRT is an independent construction industry rating tool that assesses builders and developers on a five-star system. Since its launch it has grown substantially and is increasingly referenced across the industry, including by some lenders and insurers. However, not all building companies meet the criteria for inclusion — particularly smaller operators — and some builders approved in earlier years have not been renewed. Always check the register directly, and treat iCIRT as one useful tool within a broader due diligence process, not a definitive measure of quality.

Questions You Need to Ask

As a new apartment buyer, thorough research into the developer’s reputation, track record, and build quality is critical. Below are the key questions to ask before you commit.

1. What is the developer’s name and history? 

Find out the developer’s full legal name and research their licences and certifications. Check their online reviews. How long have they been in business?

2. Can you provide references or past projects? 

Ideally, visit a past project to assess quality and finishes firsthand. If that’s not possible, ask for references from previous buyers in other developments. This can provide valuable, real-world insights.

3. What is the developer’s track record? 

Inquire about their history of completing projects on time and within budget. Have there been major delays or cost overruns in previous developments?

4. What is the history of the builder? 

Has the developer worked with this builder before? Do they use their own construction team? Be mindful of contracted third-party builders who may not align with the developer’s vision or standards.

5. Have they won any awards or accolades? 

Awards for design, construction, or sustainability can indicate a genuine commitment to quality. Established developers who consistently deliver tend to command premium prices — and sell out quickly.

6. Are they financially stable? 

Research the developer’s financial position. A financially stable developer is far less likely to encounter problems that could affect project completion.

7. What is their experience in the local market? 

Local market experience matters. A developer who knows the area is more likely to understand zoning, buyer preferences, and potential site challenges.

8. What is their reputation for quality and craftsmanship? 

Look for reviews, testimonials, and reports on previous projects. Where possible, visit completed buildings to assess quality firsthand.

9. What is the warranty and after-sales service policy? 

Ask about warranties on construction and materials, and about their after-sales process for addressing issues after settlement.

In NSW, most builders undertaking residential work valued over $20,000 are required to hold Home Building Compensation (HBC) insurance, sometimes referred to as Home Warranty Insurance. This insurance is designed to protect buyers if the builder is unable to complete the work or rectify defects due to insolvency, death, disappearance, or licence suspension.

For apartment buyers specifically, it is essential to confirm that HBC insurance covers your individual unit and to understand its limits. HBC generally provides six years of cover for major structural defects and two years for minor defects, consistent with NSW statutory warranties. However, not all multi-unit developments are automatically covered under the scheme, so verification is critical before you proceed.

While HBC provides an important additional layer of protection, it should not be the sole basis for assessing risk. Buyers should also weigh up the financial strength, track record, and reputation of both the developer and builder — because the best outcome is never having to make a claim in the first place.

10. What is their commitment to sustainability and energy efficiency? 

Inquire about green building practices and energy-efficient design. Also ask about practical inclusions such as EV charging infrastructure, solar integration, and thermal performance ratings — these are increasingly important for liveability and future resale value.

11. How transparent are they about project details and costs? 

Ensure the developer is clear about all costs and any potential additional charges that may arise during construction.

12. What is their relationship with local authorities and regulatory bodies? 

A strong relationship with local authorities can help streamline approvals and resolve issues efficiently.

13. Are there any pending or past legal disputes? 

Check for any legal action related to the developer’s projects. This can be an early indicator of problems.

14. What is their approach to community and amenities? 

Ask about plans for communal spaces, facilities, and shared areas within the development.

15. How will they handle delays or unexpected issues? 

Understand their contingency plans and how they have managed unforeseen challenges in past projects.

16. What are the terms of the sunset clause? 

For off-the-plan purchases, it is critical to understand the sunset clause, anticipated completion timeframes, and what protections are in place if there are significant delays. Legal review of the contract is strongly recommended.

17. Is there a dedicated customer service and support team? 

Find out who you can contact during the buying and construction process if questions or concerns arise.

Additional Considerations

Beyond the developer, it is equally important to assess the financial health of the strata scheme. Buyers should review:

• Capital works fund balances and forecasts
• Any history of special levies or upcoming major works
• Strata insurance costs, which have risen significantly in recent years
• Independent building and defect inspection reports

Pay particular attention to common defect areas across the Sydney apartment market: waterproofing, structural integrity, and fire compliance.

Final Thoughts

By asking these questions and conducting thorough research, you can make a far more informed decision when purchasing a new apartment — and have greater confidence in both the quality of the build and the security of your investment.

In today’s market, due diligence is no longer just about asking the right questions. It’s about knowing where to look, what to verify, and which risks to avoid. This is where an experienced buyers’ agent can make a significant difference.

At Premier Home Finders, we work exclusively on behalf of buyers — never sellers — to ensure our clients have the information, access, and guidance they need to purchase with confidence. If you’re considering a new or off-the-plan apartment purchase on Sydney’s Lower North Shore or Eastern Suburbs, we’d love to help.

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