Off-the-Plan vs Established: The First Home Buyer Comparison in Mentone

First home buyers in Mentone are facing a pivotal decision: invest in a brand-new apartment off-the-plan or opt for an established property in the heart of a leafy neighbourhood. With several major projects launching in the last 12 months along Balcombe Road and established homes in neighbourhoods like Kilbreda and Como Parade seeing renewed interest, the choice goes well beyond purchase price alone.

Rising interest rates and tightening lending conditions have made the entry to the property market markedly more challenging for first-time buyers in 2026. Local agents say competition for affordable homes in Mentone has surged, spurred on by government grant programs and a limited pipeline of new stock. The need to understand the trade-offs of off-the-plan versus established homes has never been more urgent for those determined to get a foothold in the area.

Grants, Incentives, and the Mentone Market

The City of Mentone’s First Home Buyer Incentive Program is seeing record usage. Uptake for entry-level apartments in projects like The Corniche Residences on Brindisi Street has been brisk, with developers reporting over 50% of available units secured by first-home buyers by mid-year. Established home hunters, meanwhile, are flocking to traditional streets such as Mitchell Street and the areas around Mentone Reserve, with detached homes often selling within weeks of listing.

Mentone’s First Home Buyer Grant, part of its wider Housing Affordability Action Plan, offers eligible applicants up to $15,000 toward a principal place of residence, provided they’ve not previously owned property in the city. The regional stamp duty concession has also shaved around $8,000 off purchase costs for homes below $700,000, a figure relevant to many established units and a small pool of new releases in projects like Charman Mews.

Numbers in Focus: New vs Old

Recent sales data from Mentone Propertywatch magazine points to a median price of $715,000 for established two-bedroom units in central Mentone as of June 2026, while off-the-plan equivalents in newly released complexes like Portico on Como Parade are averaging just under $690,000. The lower outlay for new stock is tempered by long settlement periods-nine to twelve months is typical before completion and settlement, with buyers needing to factor in the risk of construction delays or plan changes.

Buyers of established homes on streets such as Oak Avenue benefit from immediate occupancy, transparency on the building’s condition, and often a more stable neighbourhood character. Off-the-plan purchasers, by contrast, access modern amenities, better energy ratings, and, in many cases, lower short-term maintenance. However, these new apartments often come with higher owners’ corporation fees and less certainty around future resale value.

Industry specialists recommend first home buyers seeking immediate stability and certainty look closely at established stock, particularly in pockets surrounding Mentone Grammar and the commercial strip. Those more focused on securing a brand-new property and maximising grant eligibility may prefer the off-the-plan path, especially while current incentives remain available.

Several projects, including the recently announced Mentone Green on Beach Road, will open to early registrants by late July. First home buyers are advised to confirm eligibility for all local and state support schemes with the City of Mentone’s Housing Office, review developer track records, and secure independent building inspections for established properties. Both routes offer a path into Mentone’s sought-after property market, with grants and incentives potentially tilting the scales depending on individual priorities and risk appetite.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.