At least for the moment (who knows what will happen when interest rates rise?) many real estate developers are having a great time selling pre-sale condominiums. Here in Vancouver, line-ups are once again ho-hum news, and in Toronto, properly priced and quality-built projects are doing just fine, thank you. So what’s the problem? Short-term thinking caused a lot of heartaches and headaches last time the market corrected. I think the real estate development industry needs to plan now for the next economic event that will eventually happen – be it interest rate driven or otherwise.
When things are going well, it’s easy to keep doing things the way we’ve always done them. It’s easy to fool ourselves into thinking that sales velocity will continue, and prices will keep rising. Anyone who’s been in the business of selling real estate developments for more than 5 minutes knows that even at this very moment, some parts of the country are still in recovery mode. It bugs me that many developers have conveniently forgot how bad things really were a few short quarters ago.
What if instead of every new development being a short term sales & marketing assignment, each was considered as another opportunity to build the developers brand for the long haul? What if your development company built a brand that would make consumers interested in your product in good times and bad?
Even during the worst economic times, people still need to move. They need to downsize or upsize based on kids leaving home, or new babies being born. They need to relocate because of work, or because they are newly married, or newly single, or because of other unavoidable lifestyle changes. If your company had worked hard to win their trust over the long-term, through good times and bad, who do you think they’ll turn to when it’s time to move again?
On March 29th, RENX has designed a breakfast seminar in Toronto to address these issues. Hunter Milborne, of Milborne Real Estate and Chairman of Sotheby’s International Realty Canada will talk about the condo market in the GTA for the next 12 months. Jennifer Podmore Russell, from Deloitte & Touche, will share recent research she’s done on the effects of interest rate increases on the buying power of consumers, and the building power of developers. And I’ll talk about Marketing Journalism, a new way to think about the marketing function, based on my book Sell The Truth. The seminar costs $25, includes breakfast, and proceeds will be donated to a GTA charity thanks to the generosity of our sponsors.
You can register here. . It’s a small investment in the future, and will leave you prepared to think long term about how our industry moves forward.
Thanks to our generous seminar sponsors!