Buying guide

Buying a New Build Home in New Zealand: A Step-by-Step Guide

Here’s how it works.

Last updated: 23 April 2025 | 3 min read

For many Kiwis, buying a new build is the ultimate dream – a fresh start in a brand-new home, fitted with the latest technology, materials and no wear and tear from previous owners. But the process is a little different from buying an existing property, and it’s important to know what to expect.

In this guide, we’ll walk you through how buying a new build works in New Zealand, the different ways to purchase, key questions to ask, and what to look out for.

How to Buy a New Build in NZ

There’s more than one way to buy a newly built home in New Zealand. Here are the two most common options:

1. Buying Off the Plans

Buying “off the plans” means you agree to purchase a property before it's finished – sometimes before construction has even started.

Things to know when buying off-plan:

Fixed pricing (usually): Most off-plan homes come with a fixed price, though in volatile markets, some contracts include escalation clauses.
Contracts and clauses: Always get your lawyer to review the sale and purchase agreement. Key things to check include sunset clauses (which set a deadline for the build) and cost escalation clauses.
Payments: You typically pay a deposit up front (held in a trust account) and the balance on completion – this is often called a turnkey agreement.
Home loans and exemptions: You likely won’t start paying interest on your mortgage until settlement. Many new builds qualify for government support, such as the Kāinga Ora First Home Partner scheme, and are also exempt from LVR (loan-to-value ratio) restrictions.

Pro tip: Homes with a Homestar rating of 6 or above may qualify for special home loan discounts, according to Mortgage Lab adviser Christiana Stevenson.

Beware of delays. Most lenders require mortgage pre-approval for turnkey builds to be renewed every 90 days – so if your financial situation changes during the build, you may need to requalify.

With off-plan homes, you'll usually pay a deposit before development starting, and then nothing else until the project finishes.

2. Buying Land and Building Your Own Home

This approach involves purchasing a section of land and hiring a builder (or architect) to create your dream home.

What to expect:

If buying a house and land package, you'll likely choose from a set of pre-designed house plans offered by the builder.
Custom builds with an architect give you more freedom but are more expensive and take longer.
Always check for covenants or building restrictions that could affect how you use the land.

Key Questions to Ask Before Buying a New Build

1. Can You Trust the Developer or Builder?

Before signing any contracts, do your homework:

Read reviews from previous buyers.
Visit completed developments.
Ask about any delays, council issues, or financial troubles.
Find out who the builder subcontracts work to – and check their reputation too.

You need to be comfortable with your builder before going ahead with a purchase.

2. Have You Done Your Due Diligence?

Even for new builds, the usual due diligence applies. Get your lawyer to review all legal documents – including the land title, building consent, and sale and purchase agreement.

3. Is the Location Right for You?

Many new developments are on the city fringe or in growing suburbs, which may affect your commute and lifestyle. Make sure the area works for you now and in the long term.

4. Do You Know What You’re Buying?

Without a physical home to inspect, it can be hard to visualise the final product. Visit show homes, ask for detailed floor plans, and don’t be afraid to take a tape measure to an open home. Confirm which materials and finishes will be included in your home.

Pro tip: Use all this info to complete a thorough pre-settlement inspection.

5. Can You Customise the Build?

With a fully custom build, you can do almost anything (budget allowing).
With off-plan homes, options are more limited. Check with the developer if upgrades or changes are possible, and ask for prices upfront.

Final Thoughts on Buying New Build Homes

Buying a new build in New Zealand offers great opportunities – modern design, energy efficiency, and lower maintenance – but it also comes with its own set of challenges. Whether you're going off-plan or building from scratch, take the time to research, ask questions, and seek legal and financial advice tailored to your situation.

Disclaimer: We hope this article has provided some helpful information. It's based on our experience and is not intended as a complete guide. Of course, it doesn’t consider your individual needs or situation. If you're thinking about buying or selling a property, you should always get specific advice.

Author

Hannah Hilliam

Hannah is a staff writer at Trade Me, contributing to Trade Me Property. Having bought, sold, and renovated homes herself, she knows first-hand how exciting — and overwhelming — the property journey can be. With a knack for making complex topics feel simple, Hannah focuses on sharing practical, down-to-earth advice to make daunting decisions feel a little less overwhelming.