With homebuyer habits changing rapidly, savvy property developers are recognising the urgent need to react and innovate in a challenging market.
One key factor undergoing rapid evolution is the choice of purchase location.
No longer content or able to focus on tightly-held, pricey inner-metro locales, first-time buyers, downsizers and investors alike have begun searching for new opportunities in what might be termed unconventional regions.
With this shift in approach gathering pace, insight on what to build (and more importantly, where to build it) is increasingly vital for developers. This is where utilising exclusive Domain data can prove to be a critical game-changer.
“With our data, we can understand what type of properties buyers are searching for as well as the locations they’re searching for,” explains Domain marketing manager Kimberly Anderson.
“We can also see what price brackets they’re searching in, and identify trends of people searching for, say, two-bedroom houses or maybe one-bedroom units. That’s information we can feed back to developers. We can help influence their decisions based on these search habits.”
Based on search enquiries, Domain has identified the top five metro-regions across Australia with the highest out-of-area demand. In order of demand, these are: Yarra-Dandenong Ranges (Melbourne Region, VIC), Phillip Island and District (Melbourne Region, VIC), Hawkesbury (Sydney Region, NSW), Bribie Island (Brisbane Region, QLD) and Perth Hills (Perth Region, WA).
Available data also enables the analysis of purchasing decision processes. Indeed, Domain research has uncovered that builder or developer reputation is a vitally important factor for both younger and mature buyers.
Upon a survey of the 18 to 24 age bracket, 39 per cent reported that reputation had considerable influence on their buying decisions. This figure jumped to 46 per cent for those aged 55 and over.
Considering the Australian Bureau of Statistics estimates 20 per cent of Australians will be over the age of 65 by 2037, it’s clear the needs of asset-rich mature down-sizers desiring the golden years lifestyle will be critical to tap into.
For developers, this means an ever-increasing opportunity to use data to tailor their marketing messages to specific needs of these buying groups.
When it comes to addressing the changing needs of new buyers, it’s no surprise that a major desire among this group is the ability to circumvent the challenge of saving a large deposit. With this in mind, developer Castle Group has introduced their Castle Pay initiative, which enables buyers to pay their deposit in fortnightly instalments over a period of months.
“We get a lot of first-time buyers and their biggest problem is that they’ve got good jobs, they’re able to service a loan, but they just can’t come up with the deposit,” Castle Group sales manager Vanessa Chymiak said.
“You can’t really buy anything for less than $700,000 in Sydney, so that would normally require a deposit of $70,000. So we looked at introducing a way of helping with that.”
Chymiak adds that changes in buyer habits are necessitating a re-think in developer strategies across the board.
“I think most developers are still doing the same thing that everyone’s done for the last five-years in what’s been a very buoyant market,” she says.
“They haven’t had to do too much to attract buyers. That’s now changing.”
For more information on how Domain can help property developers in a shifting market contact firstname.lastname@example.org or visit www.domainmedia.com.au.