After an influx of new construction, the luxury real estate market is filled with new million and multimillion-dollar homes for sale. This recent development has provided buyers immense inventory to choose from on the market. As a result, buyers are taking their time before they choose to sign contracts. With so many choices, buyers simply do not want to make the “wrong” decision. Thus, many real estate agents in the Big Apple have begun to utilize creative marketing strategies for luxury homes to stand out from the pack.
In the real estate industry in New York City, the term “luxury” is quite arbitrary. According to industry research, the average price of a condominium is $3.2 million, but the actual price that categorizes a property as luxury is $4.5 million. StreetEasy data has shown more than 2,500 homes are priced at or above $3 million, with more than half of those at or above $5 million. In 2016, new developments totaled up to 6,000 apartments, many in the multi-million dollar range. Estimates project an increase of 3,000 units this year, and an additional 2,000 units in 2018.
Regardless of the increasing supply, buyers are still willing to sign contracts. Apartments priced in the $1-3 million range may prompt a bidding war, with most homes under $5 million selling without hiccups. In the $10+ million range, properties have been discounted by up to over 30%, according to many brokers.
In recent developments, many brokers in the industry have utilized unique marketing strategies to advertise properties to buyers. The use of social media platforms, especially Instagram, has become a popular tactic to publish images of apartments to prospective buyers and members in the real estate community. Simply put, brokers have focused on obtaining as many followers as possible to gain a plethora of demand for properties.
Other marketing strategies include creating a unique experience for prospective buyers. Agents have made mundane property showings and weekly events a thing of the past. In lieu, many in the industry have made efforts to spice-up these events. Child friendly gatherings, scheduled movie nights and block parties, and even complementary helicopter rides to name a few.
As the real estate market continues to heat up for the summer, new marketing strategies will certainly be out in force. With more new construction condos in the market, power will shift even further to buyers in the future.