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What will happen in the world of real estate marketing in 2017? At the end of every year, we like to make a few educated guesses about the trends we expect to see in the year ahead.

We’ll be presenting our predictions for 2017 next week, but in the meantime let’s take a look at what we said would happen in 2016.

Here goes nothing…

What will happen in the world of real estate marketing in 2017?

Portal Price Wars

We said: Both the major portals posted massive profits and REA declared a price freeze until May 2016, partially to quell the backlash from the introduction of its market-based pricing model in 2014.

What happened: Despite the number of listings falling, REA increased its prices by 10% after the price freeze ended and still posted healthy profits in 2016. Domain did pretty well too, despite tighter market conditions. Agents continue to despise the portals, something we see continuing.

International Buyer Exodus

We said: International buyers were already exiting the market in late 2015, and this trend would only accelerate in 2016.

What happened: Chinese buyers were nowhere near as influential in 2016, although they were still a force to be reckoned with in certain areas. A combination of factors, like the Chinese Government tightening restrictions on transferring funds internationally and tax increases by the Victorian Government, made Melbourne a little less alluring to foreign buyers this year.   Interestingly, Chinese buyers appeared to have returned to market in spring.  

Postal Price Push

We said: Collapsing sales led to Australia Post increasing the price of stamps. Agents using direct mail as part of their marketing strategies would need to factor in higher postage costs and extended delivery times.

What happened: Agents approached direct mail with more caution, given the added costs. But that was hardly a deterrent, with more and more agents recognising the valuable role direct mail can play when used strategically. From what we’ve seen, our clients are willing to wear the initial costs for a campaign than leads to measurable increases in enquiries and listings.

Multi-Channel Magic

We said: Multi-channel marketing would be embraced by agents in 2016, with our clients discovering a new appreciation for tools like high-end magazines and unique brochures.

What happened: Top real estate brands have spent the last 12 months enthusiastically overhauling their marketing efforts with greater attention being paid to multi-channel strategies. Whether it’s a drop card that directs a potential vendor to a website to order a free book on property presentation, or an information-packed suburb report that points to a blog or email newsletter, agents are increasingly trying to ensure that their print and digital marketing pieces work effectively together.

Buyer Success Strategies

We said: With market conditions set to get tougher next year, strong buyer management and engagement strategies would separate the winners from the losers. Agencies would rediscover the value of buyers and the importance of going the extra mile to assist buyers in finding their perfect home. Those agencies who hadn’t been developing and honing their approach would find themselves playing catch up.

What happened: Changing market tides separated the top agencies from the pretenders this year. With fewer listings on the market, agencies who got lazy during the boom struggled in 2016. Agencies who had honed their buyer management strategies thrived even in a tougher market.

Back-lit Boards in the Background

We said: Backlit boards hadn’t taken off the way that we and many others thought they might. They wouldn’t die out entirely, but they would become a niche product.

What happened: While the odd back-lit board still crops up here and there, there are just too many issues for these to ever become a mainstream tool. Several local councils introduced restrictions on them in 2016. Several of our clients also reported problems with parts being stolen off the back of the boards. But the real killer? When the sold sticker goes up, it appears as an unflattering black rectangle on the board at night.

Back to Basics

We said: Agencies would focus on getting back to basics in 2016. There would be a renewed focus on training agents to sell VPA, prospecting calls, strong database communication and rentals departments.

What happened: Plenty of agencies found themselves in this situation this year. But again, top agencies who never let their focus on these foundational elements slip were in the best position to take advantage of the market.

Property Management

We said: Changing markets would bring about a renewed appreciation of the cash flow generated by rentals departments. As sales get tougher, agents would fall back in love with leasing.

What happened: We worked on some big property management campaigns for our clients this year. Big agencies in particular were keen to promote their rentals departments with healthy marketing budgets and a real desire for unique ideas that would differentiate their business.

The Strong get Stronger

We said: The agencies who had been market leaders over the last couple of years would thrive even as market conditions changed.

What happened: This was definitely true. Agencies who had been lax with marketing and selling VPA floundered in 2016, while businesses who had maintained their focus on training, building robust databases and running strong, consistent marketing campaigns went from strength to strength. The number of new offices that were opened by top agencies is a testament to this.

Stay tuned for next week, when we unveil our real estate marketing predictions for 2017.