Why you need to understand your target market
Successful communication and marketing strategies rely on understanding your target market and the real estate industry is no different. With such a broad range of demographics across Queensland, understanding the needs of your area may greatly enhance your effectiveness as a real estate agent.
Demographics and HousingEliza Owen, CoreLogic's Head of Research, says "understanding the interaction between demographics and housing can help inform marketing strategies and understand the needs of clients and prospects."
"For example, ABS data suggested that in 2018, almost half of all first home buyers were aged between 25 and 34.
"Therefore, areas with a high incidence of renters and people in this age group, such as Brisbane and Gold Coast council regions may be a good place to target marketing of ideal first home owner properties," says Owen.
All parts of communication can be more effective when your marketing tools are geared towards prospecting buyers who are interested in your area.
With an increased number of interstate arrivals, Owen suggests targeted marketing to southern states could be worthwhile.
"The Queensland property market is a popular destination for people moving from other states and territories. So interstate marketing is very important, where strengths of property across Queensland include affordability and lifestyle," she says.
"Given COVID-19 has amplified the remote working trend, 2021 could see even more people take up a change in lifestyle. Which means continued promotion of listings outside of Queensland, promoting the lifestyles associated with the properties on offer."
Understanding your target market in actionJulie Ryan, a 'hands on' agent with a lifetime of real estate experience and an enthusiastic member of the Commercial and Industrial Chapter of the REIQ, prioritises getting to know her demographic. She has provided us with an example of how she has used her demographic knowledge to secure a property sale.
A property in Cairns had been on the market for 11 months and not a single buyer had inspected it. The selling agents were convinced the problem was the property, not the price. However, the solution was to understand who the target buyer is. To decipher this, Ryan and the agents considered two questions: what is the problem and who wants the problem?
"There was a very steep access to the property, with 54 steps from the letterbox to the front. Most people would find the driveway terrifying, but it would suit someone who values seclusion," said Ryan.
"Once we knew this, we wrote an ad targeting the buyer we wanted. And the property sold with three competing offers the day after the ad ran."
Without understanding the 'why' for this property, Ryan believes she would have not been able to find a suitable buyer.
"Every part of our communication can be more effective when we know our audience. Because people do not just buy a property, they buy what a property will do for them," says Ryan.