How changing consumer trends are affecting property sales strategies

Series: Selling Off The Plan

In this latest article from our 'Selling off the plan' series for agents and sales partners, we explore how the evolution of consumer trends — the rise of the informed consumer, a growing emphasis on sustainability and smart technology, price sensitivity, trust issues, and changing lifestyle preferences — are all reshaping sales strategies. 

The last few years have been somewhat challenging for a lot of Australians, with our post-Covid economy impacted by a range of ongoing world events and conflicts, interest rates climbing and a growing portion of the population feeling the pinch of an escalating cost of living. 

Outside of this, the pandemic and other factors also motivated a shift in thinking for many people, with balance, family and lifestyle once again becoming the primary priority, and employees demanding a change in working conditions to provide new levels of flexibility. 

Understanding the transforming consumer landscape is pivotal for developers aiming to minimise risk and maximise their returns, and sales partners looking to successfully sell off the plan, especially in urban areas where some of the greatest impacts are being experienced, and the Australian dream of home ownership continues to evolve. 

By combining decades of our understanding of consumer behaviour in the property space, with the latest research, we provide valuable insights into what is changing, how, and the best ways to adjust off the plan property sales strategies in response. 

The rise of the informed consumer

The digital age has fostered a new generation of property buyers – informed, savvy, and more discerning than ever before. The availability of online resources has transformed how consumers approach property, equipping them with detailed information about developments, market trends, and even the myriad of property specifications. It enables them to draw on data, information and opinions provided by experts to better understand the property market, and most relevant here, to much more deeply analyse the established vs off the plan opportunity.

For developers, this means the bar has been raised. The traditional sales pitch with glossy brochures and big promises is no longer sufficient. Today's buyers expect transparency, authenticity, and detailed insights into the properties they consider for future homes or investments.

At LINK, we have seen this shift first-hand, and have effectively evolved, as consumers have, to meet their changing needs. A big part of this adaptation is not only reading the market and the data, but maintaining close and genuine relationships with buyers, really listening and learning, so we can meet them in the middle, with everything they need to feel confident to make purchase decisions.

Overall though, this trend towards a more informed buyer requires updated sales strategies that move away from broad-based advertising to more targeted, informative, and engaging content and relationship building. 

The impact of market fluctuations

The Australian property market is no stranger to cycles of boom and bust. Despite continuing strong results, recent years have seen heightened sensitivity to price fluctuations, driven by economic uncertainty, supply chain disruptions, unfavourable media coverage of the construction industry, and cost of living pressures. Consumers are more cautious, seeking value and security in their investments.

For developers, this means a more considered approach to pricing and timing is required. Off-market sales strategies, leveraging extensive networks of real estate agents, can play a critical role here. By engaging potential buyers early, before public marketing begins, developers can lock down sales, which in turn lends extra security to the continuity of the project itself.

For sales partners, this again means continuing to evolve your sales strategy to cater to the greatest fears and motivations of buyers, as well as fostering relationships based on real trust, so consumers can feel safe to consider your advice and guidance.

Property has always been a people game, but where, in the past, some agents may have got away with treating it more transactionally, that approach is no longer going to lead to sustainable success.

Changing lifestyle preferences

Despite recent orders for workers to return to the office, the pandemic has left a lasting mark on what Australians want from their homes. The demand for flexible living spaces, home offices, and amenities that support a work-life balance is at an all-time high.

Similarly, the allure of urban living is balanced by a desire for green spaces and community connectivity. Buyers are looking for that elusive balance between access to all the modern amenities a city delivers, and the tranquillity and escape most often organically offered by regional locations.

In short, many people have recognised the widespread isolation that was occurring even before the pandemic and are looking for those more traditional ‘old neighbourhood’ feelings, whether buying or renting. While of course this concept is more prominent in different demographic groups, the fact remains, more people are looking to enjoy more balanced lives.

Developers must be tuned in to these evolving preferences, designing and marketing properties that offer the blend of functionality and lifestyle that modern buyers desire. This includes considering the location, design, and amenities of a development through the lens of contemporary living trends.

Sales partners need to be empathetic to these feelings and desires, and not only shape their marketing and sales efforts around them, but highlight the aspects of a building or single residence that enable and empower that lifestyle.

Restoring trust after industry setbacks

The construction industry has faced significant challenges over the last few years, and unfortunately, given current world events, those are likely not behind us. We have seen high-profile defects, corruption, and supply chain disruptions that have shaken consumer trust in developers and the sales partners who sell projects. This shift has made it crucial for developers to prioritise transparency and quality assurance in their property sales strategies, and to strive for trusted third party endorsements, like the highly-regarded iCIRT rating.

By openly communicating about construction progress, potential issues, and remedial actions, developers can start to rebuild the trust that recent industry challenges have eroded.

Adopting practices such as providing regular updates and embracing third-party quality certifications, helps demonstrate a developer's commitment to excellence and reliability. This transparency not only reassures potential buyers but also sets a foundation for a more trustworthy property market.

A great example of this is one of our most successful projects, ‘Willoughby Grounds’. The development team recognised the challenges in the industry and sought an independent iCIRT rating to enable confidence in potential buyers. The developer, along with LINK, also regularly hosted update events and sent project information to ensure existing and potential buyers always felt informed and considered. 

Sales partners also play a vital role in reinforcing this trust, acting as the bridge between developers and buyers. 

Ensuring, as sales partners, you are well-informed and confident about the properties you represent allows you to effectively communicate the integrity and benefits of a development, further strengthening buyer trust in the face of the industry's recent challenges.

Adapting to the rise of buyer's agents in Australia

Traditionally more common in markets like the USA, UK, and Asia, the role of buyer's agents in Australia has seen a significant increase of late, reflecting a more sophisticated approach to property purchasing, especially in off-the-plan developments. 

This trend indicates a move towards a more comprehensive support system for buyers, encompassing not just buyer's agents but also financial advisors, mortgage brokers, solicitors, and other specialists. This expansion of the buyer's team signifies an evolution in how Australians are navigating the complexities of the property market.

Buyer's agents, with their deep and local market knowledge and negotiation skills, offer a tailored service that can identify and secure properties that meet specific investor or homeowner criteria, often before these properties hit the open market. 

For developers, understanding and engaging with this expanded buyer's team is becoming much more important, whether directly, or through project marketers, like LINK.

Providing comprehensive, detailed information to buyer's agents and financial professionals ensures the benefits and unique selling points of a development are accurately communicated to potential buyers. 

For agents, broadening your network to embrace buyer's agents, to ensure they look to you for the latest opportunities and all the information they need related to those opportunities, will become increasingly important to your success.

The demand for sustainable and smart homes

Sustainability is no longer just a buzzword in property, it is fast becoming a highly influential factor in property selection throughout the world, with the trend also starting to sneak into Australia, albeit a little more slowly than some other parts of the globe.

Alongside good school districts, low crime rates and access to useful amenities, consumers are prioritising homes that offer strong internet connection options, energy efficiency, reduced carbon footprints, and sustainable materials, if only for the savings they will make on their quarterly utility bills! 

This move is mirrored in the rise of smart homes equipped with technology to enhance living standards, security, and energy management.

While the trend is perhaps stronger overseas, we are starting to see local developers also embrace it more, integrating more of these elements into their projects from the ground up. 

Marketing these features effectively requires an in-depth understanding of consumer motivations and a commitment to genuine sustainability, not just superficial greenwashing, as well as at least a mid-level understanding of the tech being offered.

What this means is developers will more openly embrace sales partners who can accurately and compellingly communicate these features, than those who can't. At LINK, this has and will become an ongoing focus for us, as we educate our vast network of specialist sales partners, and support their learning about these changing demands and how to best communicate them. 

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One final consideration looming on the horizon for the property market, is the inevitability of evolving agent fees over coming years. With Sydney’s rates historically some of the lowest in the country, and in fact, the world, there’s a good chance there will be a ‘meeting in the middle’ of these local rates, and higher rates often enjoyed in other states. 

Prompted mainly by changes in the market that see the Sydney landscape now much more competitive for agents, but also the growing property prices in other states bringing commission on par with that of Sydney, coming years will make this an area to watch for developers and consumers. 

As the Australian property market continues to evolve, so too must the strategies employed to market and sell developments. The rise of the informed consumer, a growing emphasis on sustainability and smart technology, price sensitivity, trust issues, and changing lifestyle preferences are all reshaping the landscape. 

For developers, success lies in recognising and adapting to these trends, and employing sales strategies that are informed, flexible, and above all, genuine.

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