In our interview with George Cardale, we discover why accurate pricing is vital in today’s property market for development success.
Author | Paul Skuse, Oakfield Design & Creation
“In today’s market, more than ever, accurately pricing your properties is paramount. Failure to do so can mean the difference between attracting buyers and watching them move on to other options, leaving your properties in their wake.”
George Cardale, Savills
In a property market where now, more than ever, pricing strategy and precision can dictate the success or failure of a development, the emphasis on getting the price point exactly right cannot be overstated.
This insight, drawn from an in-depth conversation with George Cardale of Savills, highlights this critical idea.
As we know, the property market is a dynamic entity, constantly influenced by economic factors, buyer preferences, and competitive pressures. This flux means that what worked yesterday might not work tomorrow, making the task of setting the right price a challenging yet essential endeavour. It’s not merely about assigning a value based on costs and desired profit margins; it’s about understanding the market at a granular level. The right price point is a confluence of the property’s inherent value and the market’s current state, requiring a deep dive into comparative analyses and real-time market feedback. Getting this balance wrong means potential buyers are either not there, holding out for a more attractive price point, or they’ve already committed to other options by the time adjustments are made.
Developers must leverage every tool and piece of information at their disposal to navigate these waters. This includes a comprehensive understanding of the “5 P’s” of property sales, which we will explore further in a follow-up article. However, it’s crucial to acknowledge that while Price is paramount, the other four P’s — Product, Presentation, Promotion, and People — play significant roles in drawing in and securing buyers.
Product quality cannot be compromised. The specifications, size, quality, and type of build must meet the expectations set by the price point. A misalignment here can deter potential buyers, regardless of the price.
Presentation involves the kerbside appeal and interior design, which need meticulous attention to detail. The first impression, both off-plan and with your show home dressing, is often the deciding factor for prospective buyers, making the aesthetic and functional appeal of each property a priority.
Promotion strategies must set your development apart in a competitive market. A strong brand presence, coupled with consistent, high-quality marketing efforts, ensures that your properties resonate with the target audience, garnering interest and engagement.
People, the cornerstone of the sales process, need to embody expertise, experience, and the ability to foster trust, rapport, and excitement throughout the buyer’s journey. The sales team’s approach can significantly influence the buyer’s decision-making process.
To further entice interested buyers, developers can offer incentives such as stamp duty payments, part-exchange options, cash-back on completion, or covering service charges for the first year. These incentives not only make the offer more attractive but also alleviate some of the financial burdens buyers face, making the purchasing decision easier.
In conclusion, setting the right price point is a multifaceted challenge that requires a nuanced understanding of the market, a keen insight into buyer behaviour, and a comprehensive strategy that encompasses the 5 P’s of property sales. As we delve deeper into these aspects in our subsequent discussions, we keep in mind that the goal is not just to sell properties but to do so in a manner that maximises value for both developer and the buyer.
In this fluctuating landscape, the developers who master the art of pricing, supported by a strong product, presentation, promotion, and people strategy, will navigate the current market challenges with confidence and success.
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