Recent data from the CSO highlights that property prices across Ireland are continuing to rise. The Davy/myhome.ie Q2 Market Report highlighted the following data points.
- Q2 has seen a moderate slowdown from Q1
- Some improvement in housing availability but demand still outweighs supply
- Annual inflation rate is at 10.9% and rising
- Demand is still strong buoyed by a strong economy and wage increases
- Average transaction bids are up 6.6%
- Mortgage approvals are up 9.4 year to date
See full report here
How to succeed in selling residential property in 2022
The property environment is now being coloured by rising inflation (rising to 12.7% in Q2 for Dublin) and rising property price growth - 7.9% for Dublin in Q2. The ECB has raised interest rates 25bps in July (the first rate hike in 11 years) and has indicated a heavier 50bps as a possible rise in September. They are committed to bringing inflation rates down to 2%. However interest rates are still historically low and hence still represent an accessible rate for borrowing. But the prospect of rising interest rates will have to be factored into 2023 and the likelihood of that dampening the market.
In the last 12 months 22,200 units have been completed, of which 6,100 were apartments. There were 4,800 one-off houses built in this 12 month period. Data for 2022 suggest that 34,846 will be started representing an increase in supply from 2021.
The rental market also reflects a drastic shortage of product. Rents rose 8.9% in Dublin to an average of €1,972 per month. Upward pressure on rents is expected into 2023.
First time buyers typically represent around 30% of the market, but significantly based on typical data 80% of buyers are 24-30 years old. It is this generation of buyers that will receive the majority of marketing spend.
From a marketing perspective, understanding your target audience demographics and purchasing habits helps map out a plan to engage them. Significantly...
43% of homebuyers search online as a first step before contacting an agent
NAR (USA) 2022
...and 97% of homebuyers search online before making a purchase. Hence a significant allocation of marketing spend must reflect this fact that these buyers are spending a lot of time online gathering data about the development, property, agent, locality, community etc. Hence...
Digital marketing strategies will be critical to success
Agents need to be aware of this buying behaviour and looking to engage target audiences before and during this campaign window.
12 tips for successful residential marketing in 2022
- Be brand centric throughout, whether this is for a development that requires a bespoke branded approach including website, site hoarding etc to capture your unique proposition or a one-off house sale - you have a story to capture and deliver to your audience.
- Develop a detailed Social Media strategy. We would venture as far as saying that your activity on social media is as important as your website presence. You should have a presence on Facebook, Instagram, You Tube, Twitter, TikTok, LinkedIn
- If it is a residential development you will need a bespoke website which captures the vision of the future for the area and the properties being sold. Build it with SEO in mind to increase your opportunity of being found and listed with the search engines
- Showcase customer testimonials and reviews in as many channels as possible as this type of customer feedback is 'gold'. It is your social currency
- Build your network of target customers with feverish focus and energy. You must look to engage with them early and often. This a very emotional and financially serious journey for would be buyers. Consider using a CRM platform to build out your database of targets and contacts
- Use email to continue to engage with your target base
- Although digital marketing and communication will be critical, don't forget the need to engage audiences using traditional media channels also - newspaper ads, editorial, outdoor media etc
- Video - walk throughs and drone footage will be needed to populate your channels
- Commit to developing content that will engage your audience. Send regular updates to your base
- Plan a campaign of geo targeted ads - you need to tap into the area you are selling in.
- Engage with local influencers
- Examine virtual staging of the properties as you will likely be marketing before build is completed