Buying off the plan involves signing a contract to buy an apartment that is still to be constructed. Locking in an apartment under construction enables investors to take advantage of rising market rises or drop losses.

Property developers argue that they are using low-rise, high-end luxury projects to inject life into OTP strategies rather than high-rise apartments, particularly for owner-occupant downsizers.

Fortis Development Group estimated that about 70 percent of low-rise buyers in Malvern, a leafy Melbourne suburb about 12 kilometres south-east of Melbourne, paid cash for apartments worth between $750,000 and $2 million. They say that, given the properties already being sold, around 150 people attended an open day.

Developers note a strong demand from downsizing owner-occupier baby boomers looking for conveniently located, luxurious, low maintenance, three to four-storey apartments. Buyers often use the period between purchase and construction to sell the family home.