How a developer can sell when others around them fail
Off-plan property sales can be tough, especially when the market is slowing down, as it appears to be at present.
The hung parliament that resulted from general election 2017 was another blow. It has done nothing to instil confidence in a market still reeling from the UK electorate’s decision to leave the EU. This on its own, though, shouldn’t deter investors in regional off-plan property. But there are also other factors in play. Economic numbers have been mixed around the world. The recent Grenfell Tower tragedy is likely to deter homebuyers from considering a purchase in any tower block.
There will be developers who can still sell significant numbers of properties off-plan, despite a slowdown in a market that appears temporarily saturated. What is it they do that creates such success in their off-plan property sales? How do they achieve enough sales to pay for the development before it is completed? Where and how do Castlereach help developers hit their targets?
Here are three firecracker features of the most successful developers selling properties off plan.
A successful track record
When you have targets for your off-plan property sales, property investors want to know that their investment objectives will be met. They will have their property investment strategy designed to achieve this. They want to know that the developer they are buying from has a record of delivering developments to the quality anticipated and within the quoted timeframe.
Developers that have delivered multiple and similar projects in the past will have the experience needed to know how long a project will take to reach completion. Our investor clients want to know that a property they agree to buy – perhaps before ground has even been broken – is going to be delivered on time. They can then develop their investment strategy in line with this. It gives them a definitive completion date to aim for and allows them to arrange any required financing.
When we work with investors and offer them property investment opportunities, the investors know that we have already done due diligence investigations on the developer. We’ve assessed the viability of the development from its location investment potential, and from the ability of the developer to deliver on their promises.
The investor buys the property off plan and benefits from the potential of an increased value at the time of completion. The developer meets its targets more easily, because of our reach to the UK and overseas investors and the reputation we have built up with them.
Anticipation of residential living needs
A second feature of the most successful developers is that they anticipate the future lifestyle needs of the people who will inhabit their properties. They create places in which people want to live near to transport and recreational amenities, and with ‘in-house’ amenities that sell.
Such amenities may include elements like pre-wired communication boxes, for instance. It removes the need for a resident to lay cables around their home to wire in their entertainment systems, computers, television, and so on. Systems which connect audio in all rooms and increase energy efficiency are going to be in demand. Intercom services, with a video link to front gates, allow residents to welcome guests and vet visitors more easily may become a standard in the future.
Gyms, open spaces, communal swimming pools and the like all add value in today’s market because tomorrow’s residents are likely to desire such lifestyle features. State-of-the-art security and safety features are likely to be more sought after, because of the recent tragic events in Kensington.
Developers that know what their customers want will win. And this brings me to the third feature of red hot off-plan property sales: knowing the customer.
The best off-plan property sales are made when you know the customer
Investors today are more sophisticated. They have wider and easier access to information. They understand who their target market will be – whether they wish to sell for capital gain or rent for long-term income, as most of our investor clients do.
Blanket marketing doesn’t work anymore. In fact, it can do more harm than good, especially during those early-stage, off-market sales efforts. The best strategy to maximising off-plan property sales is to know your customer. When you understand the investor, you need only to market under the radar to those investors who have expressed a desire to invest in the type of property, area, and a price point which is being offered. The success ratio rises because you are marketing to those who are most likely to buy.
It can take years for an initial meeting to evolve to a level of trust and confidence. It is usually reserved for the personal relationships. We communicate constantly with investors. And use social media and email, voice, and SMS communication strategies. We hold seminars and webinars, and our property consultants are proactive. They discuss investment strategy and the latest property investment opportunities with their clients. We then provide investment education and research to cement buying decisions. It’s unrealistic for a developer to put effort into locating potential investors. And spending the time and effort to develop hundreds of individual relationships.
When we work with a developer, we do so because we are confident that:
- The location will provide investors with above-average returns through the long term
- The developer will deliver to quality specifications and on time
- We have the investor clients on board who are likely to be buyers
A deliberate strategy for off-plan property sales
Off-plan property sales don’t just happen. It’s a deliberate process, connecting the dots between plans and execution. Developers should evidence a track record of delivering a quality product on time. And homes that cater to people’s lifestyle needs. This helps to build trust with buyers. Those buyers must be targeted carefully and quietly. To do so, it’s imperative to know who they are and to have developed a meaningful investor relationship with them.
The developers who do these three things will find their developments sell out, while others remain unsold.
Contact us today on + 44 207 923 5680. Together we’ll work to achieve your sales targets, whatever the market condition.
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