Considering the economic impact of the coronavirus pandemic and the uncertainty that looms while waiting for the vaccine, you might be thinking that most people will be holding off buying a property. It would be practical for them to set aside big purchases and prioritize essentials, such as food and healthcare. But surprisingly, this isn’t the case on the ground — at least for one section of the market.
The Most Active Market Segment
In the recent Lamudi roundtable titled On the Horizon: Real Estate Leaders on Market Recovery, property experts revealed that they’re seeing more activity now among a seemingly unlikely segment: the affordable.
In the first track of the discussion Revive: Property Investment in the Post-Pandemic World, Franco Soberano, EVP and COO of Cebu Landmasters Inc., said, “The market that has been very active or very busy is the affordable market. These are the markets where houses or condo units will be selling from P1.5 to around 3 to 4 million.
“This market is the majority of our demographic, the labor force.”
Speaking at the third track of the event Redesign: Buoying the Market Through Changes, Raphael Felix, President and CEO of Phinma Properties, mentioned, “Our affordable market developments went back to pre-ECQ (enhanced community quarantine) sales rates as early as mid-April.”
Put simply, the affordable market is buying despite the crisis. Given this, it’s worth resuming talks with your clients in this segment, instead of taking a subtle approach or waiting until situations stabilize. But before reconnecting with them, learn what’s driving their interest so you can align your strategies to their needs.
Here are some of the reasons the affordable segment is going active in the market:
They Realize the Urgency of Owning a Home
According to Soberano, this segment is among the first ones who understood the value of owning a home during this pandemic. People have spent the last months of their lives indoors. In the case of the affordable market, they’re the ones who had their jobs transition to the work-from-home arrangement and their children having distance learning. As a result, they need a space where they could do all these new normal activities.
With this in mind, it’s important to highlight how your property supports lifestyle needs during this time. Perhaps your townhouse has a spare room that can be used as a home office. The mid-rise condo unit you’re selling may be Fiber-internet ready. These features are worth emphasizing when talking to your clients. Let them see how the property accommodates their needs under the new normal.
They Take Advantage of the Financial Perks
It’s raining promos and discounts in the property market today. Given the current crisis, property developers have stretched out their terms of payment, offered add-ons, and marked down prices. The affordable market maximizes this opportunity to get the home that they badly need in this pandemic. In turn, you should maximize this season to inform your clients that their dream home is within reach.
But also, go beyond emphasizing promos and discounts. Enumerate the ways the property they’re buying can help them save more once they move in. Maybe the condo is near essential establishments that residents wouldn’t have to spend a lot on transportation expenses. Perhaps the house is solar-powered that they won’t have to worry about high electricity bills. Talk about the financial perks of buying and living in the property you’re selling.
They Know More Now About Their Options
The pandemic has made society more digital. This transition has made information widely available to people, especially the affordable segment. They’re now more empowered, knowing the choices they have in the market. Through digital platforms and property listing sites, they can easily compare prices of homes they’re eyeing. In fact, they’re able to explore locations they haven’t considered before, such as areas outside Metro Manila, which may offer more affordable options.
Since your clients are going digital, it’s important to be where they are. List your properties in real estate platforms such as Lamudi. Provide complete information, good photos and videos, and your contact details. If you can create a virtual walkthrough of the property, that would help your future clients envision living in the space, increasing the likelihood of them buying.
The affordable segment is getting busy in the market. Don’t miss the opportunity of helping them find their next home sweet home. Reconnect with your clients with their needs and interests in mind.