The development industry inhales information and produces relentless analysis on both the buying and selling side in order to find the elusive utopian deal based on research.
Research is reactive; why base your largest lifetime purchase or your company balance sheet on what happened down the road six months ago? Increasingly purchasers are more informed than the consultants providing the information, and the purchaser feedback is not always accurately relayed back to base.
Are we really providing the market with product they want?
Understanding acquisition cost drives any feasibility. If we consistently delivered product based on demand, knowing exactly what that demand is, then hypothetically every site stacks up and what is considered unaffordable is now affordable.
Real time online data is the ability to measure human behaviour; patterns and trends. Capturing and qualifying customer feedback is the front line of defence to resolve issues before they become a problem.
To quote Bear Bryant “Offense sells tickets, but defence wins championships.” Property buyers across all classifications are taking 6 months to 2 years to search for, and purchase a property. This will include enquiring for over 200 established, new and off the plan projects, and on average 40 visits with agents and display suites.
Sheer exhaustion over the buying process is a nuisance for prospective buyers, but understanding these prospective buyers is key to capturing the market.
The majority of first home buyers are female in the 28-35 age range, with most of the initial deposit saved, limited or no credit card debt and with guardians prepared to gift or lend the gap. Males alternatively are 32-45 with part of the initial deposit saved, credit card debt and based on the track record of financial responsibility lack guardian financial support.
First home buyers are educated from the banking guidelines to ideally require a 1 bedroom apartment with internal sizes from a minimum of 50sqm, and this is exactly what they want.
Downsizers – simply – there is not nearly enough product in the marketplace for demand. 120 sqm 2 bed + Study or 3 bedroom and 2 bathroom, master with ensuite and second bathroom with separate WC essentially making is a pseudo 2.5 bathroom, the space saving going towards a butler pantry or suit case storage – because downsizers travel.
Reinvigorated with travel over their 2 year property search lifespan also results in increased flexibility with neighbourhood location for downsizers - the age group has lowered in the past 12 months with 40% being in the 45-55 age bracket.
We could wax lyrical all day on real time market data, but why wouldn’t we? Imagine being in a position to capture a live database, qualify their needs & wants and deliver straight back to that very database the very thing they want.
Now that is utopia, for buyers, sellers and the market.
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