Ready-made Luxury: The Demand for Buying Brand New

Hero Image: New York Residence - Third Aesthetic

A brand new, architectural luxury home offers something money can’t buy - time and convenience.

For a turnkey option in a premium suburb, that bypasses the protracted council approval process, the frustrations of labour shortages and the cost of renovations and extensions, there has never been a better time to buy new.

The rising cost of building materials has been slowing, ABS data shows. Construction prices modestly increased by 1.6 per cent in the 2024/25 financial year, according to the Housing Industry Association. However, although building supply costs are below their 2022 peak, there remain significant challenges for buyers who want to embark on a renovation or rebuild themselves.

The supply side of the market in Victoria is catching up after the COVID-induced interruption, and red tape has not helped.

The cost of building a typical new home in Australia is up 4.8 per cent, although that does not include all the new regulatory costs, Housing Industry Association senior economist Maurice Tapang said in a statement.

“The relatively more rapid rise in the cost of the average value of a house approval reflects not just changes in consumer preferences, but also the additional costs due to the introduction of the National Construction Code 2022, and additional taxes,” he said in August.

That is where the convenience of a completed home, by a reputable architect and builder, is increasingly attractive.

RT Edgar director Mark Wridgway points to the sale of the spectacular 11 Kent Court in Toorak - a newly-built, five-bedroom Agushi masterpiece on 611 square metres, with lush gardens by Nathan Burkett - as an example of how these homes perform in the market.

The Kent Court showstopper pulled strong interest and set a suburb record of just over $29,000 per square metre.

“The benefit is that these homes are ready to go,” Wridgway says. “When building your own home, after finding the land, employing an architect, and factoring in a planning period of 12 to 18 months, there are also other time requirements, such as meetings and dealing with builders. So buyers are looking for finished homes by leading architects, such as Nicholas Day, Rob Mills, Travis Walton and Paul Conrad.

Camberwell Residence: Third Aesthetic

“Homes by these higher-end architects are selling really well. Next, along the spectrum of size is a brand-new townhouse, and they're very popular, primarily if they don't have any common property.”

Whichever size or type of new home a buyer chooses, the essential attributes are similar.

“The critical components are good location, use of space, street appeal, room sizes that are proportional to each other and the calibre of the fit-out,” Wridgway says.

Architect Paul Conrad says functionality and quality are consistently prioritised in the projects he designs, across suburbs including Toorak, Armadale and Malvern.

“The overall design language should be unified, with a harmonious balance between indoor and outdoor living, and a focus on high-end details that elevate daily life,” Conrad says.

One of the major benefits of a new build is the careful consideration that has gone into how spaces will be used, which is often lacking in older homes.

Whether a buyer is downsizing from a large, long-time home into a townhouse or apartment, or upgrading their family to an aspirational house, purchasing a new architectural build is a chance to live in a property that is perfectly calibrated for contemporary life.

“Ultimately, our philosophy is to create homes that support a modern lifestyle - low-maintenance, highly functional, and finished with luxury touches - while never compromising on the essential qualities that make a space truly feel like home,” Conrad says.