Corey Nugent from Resilience Insurance Market Insights

Episode 51. Market Insights: Urban's Mike Bird chats with Resilience Insurance, Corey Nugent on Revolutionising Off-the-Plan Apartment Confidence with Latent Defects Insurance

Mike Bird, CEO of Urban.com.au, and Corey Nugent from Resilience Insurance discusses boosting confidence in off-the-plan apartment market with Latent Defects Insurance (LDI). Learn about how LDI is redefining the landscape for off-the-plan apartment buyers and developers in Australia.

As the off-the-plan apartment market in Australia evolves, developers and project managers face a unique opportunity to enhance buyer confidence and drive sales through Latent Defects Insurance (LDI). This insurance, a global staple for over seventy years, offers a transformative solution by providing a 10-year warranty on structural components of new apartments, covering issues from leaks to cracks.

Benefits for Developers and Buyers

LDI is a game-changer for the off-the-plan market, benefiting both purchasers and developers. By offering LDI, developers ensure that buyers have comprehensive protection from the moment they take possession. This insurance not only covers post-completion structural defects but also addresses issues during the construction phase, fostering trust and satisfaction among buyers. Developers like Deicorp, Kanebridge, and Coronation Property have already adopted LDI, witnessing an uptick in sales volume and property value.

Enhancing Market Confidence

Corey Nugent, CEO of Resilience Insurance—the pioneer of LDI in Australia—highlights that LDI improves the construction process and post-settlement phase. With expert partners involved from the ground up, LDI ensures quality and reliability, mitigating concerns about structural integrity. This proactive approach reassures buyers, which is crucial in a market where trust in delivery quality is paramount.

Economic Impact and Market Leadership

A survey by MatterFact revealed that 60% of potential buyers are willing to pay over 1.5% of the apartment price for LDI coverage, a cost-effective investment for developers. Projects with LDI have reported a 4-5% price increase compared to those without, underscoring the financial benefits for developers. Moreover, NSW Building Commissioner David Chandler supports LDI, viewing it as a pivotal reform that aligns with the state's commitment to enhancing construction standards and reducing litigation.

Revolutionising Off-the-Plan Apartment Confidence with Latent Defects Insurance

For property developers and project managers, integrating LDI into their offerings is not just about insurance—it's about positioning themselves as industry leaders committed to quality and buyer assurance. LDI not only boosts buyer confidence but also enhances project marketability, ultimately contributing to resolving Australia's housing crisis by making off-the-plan purchases more attractive and secure.