By
Michael Bird
March 26, 2025
•
9
min read
In today's episode of Market Insights, Mike Bird, CEO of Urban.com.au, sits down with Mark Bernberg from Ray White Projects to discuss how Latent Defects Insurance (LDI) is transforming the off-the-plan property market. With developers and buyers alike seeing the benefits of this game-changing insurance, LDI is quickly becoming a must-have for new developments.
Latent Defects Insurance (LDI) is transforming the way Australians buy off-the-plan properties. It provides a decade of protection against structural defects, ensuring that buildings meet the highest standards. Unlike traditional warranties, LDI is secured before construction begins, with regular inspections throughout the project. This builds trust and confidence among buyers, making it a must-have in today’s real estate market.
Mike Bird, CEO of Urban.com.au, recently spoke with Mark Bernberg from Ray White Projects about the impact of LDI on sales. Bernberg shared that a Rockdale development struggled to attract buyers until they introduced LDI. The result? A dramatic increase in sales, as buyers felt reassured by the 10-year coverage.
With construction costs rising, the gap between new and established properties is growing. Buyers are more willing to invest an extra $50,000 to $100,000 for the peace of mind LDI provides. Similar to an extended car warranty, LDI not only protects the buyer but also increases resale value, making it a smart long-term investment.
Interestingly, LDI adoption has been driven by well-known developers like Urban Property Group, rather than smaller firms. This trend signals that LDI is becoming an industry standard, ensuring quality and boosting consumer confidence.
Bernberg predicts that LDI will soon be a must-have for all off-the-plan developments. As awareness grows, buyers will demand this level of protection, making it essential for developers who want to stay competitive.
LDI is revolutionizing the property market by reducing risks, increasing transparency, and enhancing buyer confidence. If you’re considering an off-the-plan purchase, look for developments with LDI to ensure a stress-free investment.
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Speak to the team about leveraging the Urban audiences and services for your new development.
Greg Billings
Director of Residential Projects
Sonia Fava
Director
Nick Clydsdale
Senior Director
Heath Thompson
Director
Todd Matheson
Director
Thomas Panson
Project Sales & Marketing Agent
Scott Jessop
Head of Sales & Marketing
Alex Adams
Head of Sales & Marketing and
Head of New Business
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