As project marketers, our role is to identify a target market and develop a marketing mix that will appeal to our clients’ ideal purchasers. Yes, we are here to recommend and implement precise strategies however, in competitive and slightly challenging markets, like we’re currently experiencing, the question developers need to ask themselves is, “are we providing value to our key market segment?”.
Stop and smell the roses, or should I say, wake up and smell the coffee!? Either-or let’s go back to basics!
Where’s the demand?
Based on the sheer number of transactions Three Sixty is involved in, we collectively, as a company, methodically analyse buyer profiles and patterns in Brisbane, Melbourne and Sydney to ensure market demand is met. It’s essential, with any new project coming to the market, targeted customer profiles are developed based on demographic, psychographic, behavioural and environmental criterion.
Spoiler alert! The off-the-plan market HAS changed!
Lending has tightened, significantly – specifically investor lending. We’re witnessing the Royal Commission’s fifth round of investigations around misconduct in the superannuation and banking services industry, and do not get me started on the media’s commentary. However, Brisbane has received positive reviews most recently!
In Brisbane specifically, amongst all the white noise, we are now seeing strong demand towards values-led and people-oriented development. Buyers are demonstrating that they are searching and ready to buy. The question is, how can we ensure we’re targeting and attracting the correct segment of buyers to guarantee a successful outcome, not only financially but for our clients brand awareness and repeat business.
BRISBANE: WHO'S THE END USER?
1. Owner occupiers.
That’s where it’s at. Owner occupiers have been our largest increasing buyer demographic, more specifically downsizers. The current shift to higher-density living, in its entirety, is driven by, lifestyle preferences, housing affordability and proximity to employment.
We are an ageing population and Australia’s older demographic has a desire to live closer to the CBD, transport, dining, entertainment and health and wellbeing precincts. They are fuelling the rise of a ‘luxury downsize’ market. We are seeing owner occupiers choose an apartment or terrace home over a house due to the appeal of luxury shared amenity that require no maintenance at a fraction of the cost, literally.
Domain’s National Sales Director, Scott Simpson, recently stated that Brisbane is experiencing a shift in buyer profiles wanting to purchase off-the-plan whereby owner occupiers are dominating.
For Inner Brisbane, the data suggests:
- 47% want two-bedroom apartments
- 37% want three-bedroom apartments and;
- 16% want one- or four-bedroom apartments
We can’t contest the fact that real estate investing is the safest investment option around but, our focus is to ensure our projects provide potential purchasers with viable investment opportunities. It all comes back to the end user – the tenant! With what seems unlimited choice for tenants in Brisbane now, particularly in the CBD, we need to ask the following:
- Why will tenants choose your project over the one down the road?
- Would they pay a premium? And additionally;
- In the interest of a stronger resale value, do you have the flexibility to attract the owner occupier market?
Like owner occupiers, tenants have similar criterions regarding design-led and community-led features.
As project marketers, our role is to understand and know what purchasers want, before they know it themselves, we will have them lined up at the door, knocking loudly!
If you want the right advice on the Brisbane market, contact Three Sixty Property Group today!