1. September 2011 No. 491
Buyer survey
There’s room for improvement
Our recent online market survey confirms that residential property buyers
are armed with more knowledge and hold higher expectations than their
predecessors.
Buyers confirmed a dramatic move towards digital media as the primary
source for property searches, and expressed some dissatisfaction with one
or more of the professional services they encountered in the sales process.
Chart 1, opposite, shows that 42% of
buyers sourced their property 1.
Media spend vs. consumption
online, followed by television (29%), Australia
radio (20%), and print (10%).
100%
Internet
17% 90%
Chart 1 also highlights the current Television
Radio 42% 80%
mis-match between locations in Print 70%
which consumers search for Outdoor/other 60%
property and the amount of 50%
40%
advertising dollars spent in those 30%
locations. 20%
10%
From this, it would seem that digital Media spend Media consumption
0%
media is set to grow as an Matusik Property Insights, Niesen. February 2011.
advertising vehicle, while the use of
print media may further decline as
2.
a means of advertising property for Why did you recently purchase?
sale.
Figures from the REA Group indicate
Job related
that currently, 85% of people
looking for property use the internet, Demographic change
and 49% will look at newspapers. Location/property became available
Interestingly, REA also reports that
on average per week we spend 25 Price was right
hours looking at the internet, 15 0% 20% 40% 60% 80%
hours watching television, and 5.5
hours reading newspapers and Matusik Property Insights, Matusik Buyer Survey, August 2011.
Respondents could choose more than one answer.
magazines.
Chart 2 suggests that buyers are waiting and watching in the wings, ready
to move when the right location and property become available at the
right price.

2. Our survey confirmed, however, that when it came to buying property,
many buyers were dissatisfied with the professional services they received.
Here’s what they said needs improvement within the sales process:
No sales price shown
Many buyers indicated a reluctance to follow up on advertised properties
where the sales price was not shown. For some, it creates a trust issue.
Others said they simply would not consider a property without a price
indicator.
Customer service lacking
The majority of buyers (90%) received no follow-up after initial contact, from
at least one professional group in the sales process i.e. agents, solicitors,
conveyancing and financial firms, etc.
This would seem to us, opportunity lost, indeed – and amazing, given the
frequent gripes we hear about lack of business.
Better information
Buyers are savvier these days, already armed with their own research, they
are looking for better information from agents – not just about the property,
but about comparative sales, general location, amenities etc. Many would
like agents to be more proactive.
Honesty
What can we say, other than it pays, and our buyers indicated that they
would like more of it. They want honest answers.
3.
Where to from here? What do you think will happen?
Over next 12 months
The majority of buyers indicated an
optimistic outlook for the future. Drop a little
Prices
Chart 3 suggests that most buyers Drop a lot Rents
see the property price free-fall as Stay the same
slowing to a halt; 42% say prices will
drop a little; 30% expect they will Rise a little
remain the same; and only 6% think Rise a lot
prices will rise. Just one-quarter of
those surveyed think prices will drop 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
a lot over the next year. Matusik Property Insights, Matusik Buyer Survey, August 2011.
The majority of buyers appear to be optimistic, with around 60%
anticipating rental growth – again, see chart 3 – over the next 12 months.
The Matusik Snapshot is opinion and not advice. Readers should seek their own professional advice
on the subject being discussed. Comments are welcome, contact me on michael@matusik.com.au
Michael Matusik
Queensland’s leading independent property analyst
Courier Mail columnist | ABC radio commentator | Author & digital
broadcaster | Public presenter
Michael Matusik is no stranger to the residential property sector. He
has worked in the industry for over 25 years and his firm has helped
around 550 residential projects come to fruition. independent – perceptive - to the point
we make residential work
Michael authors the Matusik Snapshot, a fortnightly subscription
report covering pertinent aspects of the residential property market. Phone 07 3720 9988
Email office@matusik.com.au
Subscriptions cost $110 for 24 snapshots per year. To subscribe email Address 4 Briggs Street, Taringa Q 4068
us at office@matusik.com.au