Embracing Change in an Evolving Pre-Sale Market

In the last decade, the world has seen a lot of change - technology, equality, workplace flexibility, ESG initiatives, consumer behaviour, the list goes on. As a result, the real estate industry (more specifically pre-sale) is also evolving, not because it wants to , but because it has to. Whether it's advancements in building materials such as mass timber, government initiatives supporting new housing supply and increased density, or technological innovations changing how potential buyers interact with the market, the landscape is evolving rapidly, leaving no room for complacency. The era where one could justify outdated practices with the phrase "This is how we’ve always done it" is long gone.

Pre-sale real estate used to be an opportunity for buyers to take advantage of owning a home before it was built with a 5-15% deposit and wait 15 to 24 months with optimism of the home appreciating in value. These were times where you’d just need a brand with a nice logo, a teaser website, a few renderings and ads that drove registrations. Chances were the building would sell more than 75% at launch, the developer would receive financing and everyone was happy.

However, times have changed. Now developers face increased construction costs, longer approval processes, increased inflation and interest rates, and new building codes. Couple that with a surge in population and policy created to curb demand (that’s a headshaker), and we ask ourselves why the price of homes continue to increase. Simply put, the market isn’t as simple as it used to be. The opportunity to promote a project with a headline of “250 homes under $450,000” no longer exists.

Seizing Opportunities Amidst Market Shifts and Demands

Despite the challenges and complexities inherent in the Canadian real estate market, opportunities still exist for savvy real estate professionals who can effectively navigate its dynamic landscape.

We can’t stop developing and building new communities. People still need homes. The difference is that homes aren’t selling out at launch like they used to. With higher pricepoints, deposits and strata fees, and increased competition, buyers are taking their time making a decision to purchase, resulting in incentives.

So what now? Well to start, marketers have to actually be marketers. We must begin creating demand among eventual homeowners like national and international brands who understand the power of building a strong brand over time and not overnight.

Creative Intelligence for Real Estate Success

At Elephant Skin, we understand the importance of modern, creative, and exclusive communication in engaging potential customers and investors. Through our team's strategic, and creative intelligence capabilities, we aim to craft compelling brand narratives that resonate with our audience while driving efficient sales results.

This begins with a Playbook; a strategy that uses emotion to speak to a prospects soul rather than just the numbers. Marketers' jobs are not to grow the category of buyers but convert those already in the market to purchase a home they are marketing. If they are in the market, chances are they know their budget. If not, the sales teams have tools to help them with this. Why is it that when you buy a luxury car for $120,000, you have a much more pleasant experience than buying a home that is worth more than $600,000?

Projects frequently prioritize showcasing features over emphasizing the benefits they offer. Instead of simply highlighting a prime location, the focus should be on explaining what makes that location exceptional. If you can have your buyers emotionally connect to your project and corporate brand, chances are they’d be willing to pay slightly more for it because of the benefits you provide that you’ve showcased through your communication.

Engagement needs to be guided by purpose

Experience marketing can only be efficient when paired up with branding and positioning strategies that are aligned and cohesive, in a way that ensures a unique, seamless experience. Customization, exclusivity and valuable deliveries are among the essential attributes that lead to a successful deal with buyers and investors.

So now it's about creating a strategy that leverages consumer habits, which by the way are changing daily. Where do consumers spend their disposable income? Are they willing to sacrifice lifestyle to become a house poor homeonwer? Can they travel and own a home? Is the lock and leave lifestyle now applicable to people in their 30’s versus the boomers we used to market this to?

If your strategy doesn’t include these behavioral traits in your audience profile, to create a brand that leverages strong headlines, copy, and media placement will prove to be difficult. Creating demand does not mean driving 2000 unqualified leads to your database who will never answer your contact. Instead strive for 1000 qualified leads who the sales team will have a much better time getting a hold of.

Brands are to be invested in

A positive first impression is much cheaper to convert to a lead than a bad impression that you’re trying to win back. The cost to do this is almost three times as high.

Our goal at Elephant Skin is to offer a comprehensive creative service that transcends mere branding, focusing on genuine marketing and strategy to drive tangible results. By leveraging our intelligence and expertise, we've enhanced the outcomes for major developers, such as the successful Aqua Waterfront Village Enterprise campaign developed in partnership with Mission Group.

Through storytelling and immersive experiences, projects such as Aqua by Mission Group and Scale by Scale Projects have seen remarkable success in engaging potential buyers and creating a desire for consumption of the enterprise. The Aqua project, a new Resort District in Kelowna, Canada, was developed in nine months, and while still being built, had 71% of the development sold. Meanwhile during the prospecting phase, Scale in Langley City Centre experienced 75 registrants per week, when the market benchmark was averaging 20.

Staying Ahead of the Curve

Innovation is key in the ever-changing landscape of real estate marketing. By staying abreast of new technologies and consumer trends, real estate professionals can remain competitive and drive success even in uncertain times.

Technology is something we must embrace. How many times has a developer/client asked if you could track a buyer from the moment they click on an ad to when they converted on a deal. Well now you can! Whether it's tracking ads, to website habits, to how they use the touchscreen when they write/or don’t, you can track this information and collect the data you need to use for the future.

This is no longer the future. We are here today, and forward-thinking clients are reaping the benefits that Elephant Skin is providing them.

Peaking your interest? Let's chat over coffee!

Autor: Irshaad Ahmad - Director of Business Development & Accounts in Canada