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It’s time again for our annual series, where we take stock of the year that was and make our prediction for the year ahead. You can see what we predicted in years gone by here and here. After seeing how well we did with our 2013 predictions, we’re feeling pretty confident!

After an average start to the year the market crescendoed, with strong volume right up until the end. Things do feel like they might have peaked, however. So with that in mind, here’s what we think is in store for 2014.

1. Continued weakness for newspapers

The first six months of 2014 shouldn’t see any major shakeups for Fairfax or News Limited – but if the market turns during the second half of the year, it will be bad news for the major mastheads.  On the other hand, the local glossys will continue to have strong relevance. Next to the internet, they’re now the main branding game in town.

2. Domain vs. REA

Domain’s plans to relaunch its website, a move that will see strong support from MMP shareholders, could be bad news for RealEstate.com.au. A large number of MMP shareholders will privilege Domain at the expense of REA, which should see REA forced to moderate its price hikes –  although all the portals will continue to push their prices up. In essence, we’ll see greater competition between Domain and REA, although REA should still be the dominant player in Victoria.

3. Microsites go mainstream

The microsite has been the breakout star of 2013. They’ve been lurking in the background for the last five years, but it’s only now that they’re finally coming to prominence. Microsites have great potential value to SEO, which no one has yet harnessed – there are great opportunities for whoever gets there first.

4. SEO and SEM are here to stay

Google’s new Hummingbird algorithm has changed the game – again. Hummingbird cements the simple fact that content is king, and the link farms of the early internet are well and truly dead. SEO is more important, expensive and involved than ever before, and SEM – Search Engine Marketing – is another thing brands need to get a handle on. 2014 will not be kind to websites lacking a solid content strategy. We think that many of our clients will begin to look at paid advertising as an increasingly appealing short-cut to complicated SEO work.

5. Magazine madness

Magazines are becoming the centerpiece of most franchise marketing strategies. For brands operating outside of the core inner city markets, it’s becoming increasingly difficult to have a single tool that all offices can use to display their stock. Brands who are willing to fund high quality content in their magazine can leverage it for their websites, newsletters and social media profiles. Quality magazines that utilise great content are invaluable for brand building purposes.

6. Letterboxing is here to stay

To our continued amazement, letterboxing continues to go from strength to strength. Despite the possibilities offered by the internet, there is still no more cost effective way to reach out to a single geographical area. Agents are now embracing sophisticated real time strategies that leverage the ability of the internet to track new listings  strategies like our Competitor Drops, mean that as soon as your competition puts up a just sold sign, you can drop cards in the surrounding area and seize their momentum.

7. Breakout Brochures

This may be the sleeper prediction for the year, but 2014 is going to be the year when Melbourne real estate takes the humble brochure to the next level. Expect to see foiling, embossing, UV coating and some amazing augment reality technology make brochures a key brand positioning tool for the top agencies in Melbourne.

8. Video becomes the norm

As predicted, the use of video  has become widespread and commonplace, and we expect that to continue. New products will be launching in 2014, and more online listings will make use of moving images.

9. Boards get bold

We’ve seen surprising innovations around sign boards of late. The use of 3D lettering became widespread in 2013, and in 2014 we expect LED lighting to become the next major innovation.

10. Love is or loathe it, social media is here to stay

In 2014 we expect that social media will take its rightful place as a small part of the overall marketing spend. We’ve elaborated on our 5% rule in the past, and we stand by it. Twitter, Google+, Facebook and LinkedIn have their places, and are vital when it comes to SEO and SEM, but they need to be put in perspective; there are still too many agents expending too much energy for far too little return. While there are some who are successfully creating vibrant online communities, they are the exception rather than the rule.

So what do you think? Have we hit the mark or are we way off base? And what are your predictions for real estate in the year to come?