BRANDING IN THE RESIDENTIAL REAL ESTATE INDUSTRY

Abstract

Branding can play a large part in influencing the choice of potential homebuyers, especially in a competitive market like Singapore and under the shadow of the recent economic slowdown. Thus, there is a need for this paper to examine whether consumers are sensitive to the branding of developers, and how developing good branding may translate into a larger profit margin. The factors affecting buyers purchasing decision is determined through interviews with industry professionals. Prospective home buyers are surveyed in order to understand the importance of branding of developers in relation to other factors. Profiles of respondents are then analyzed to determine which categories of respondents are most sensitive to branding. The findings of the survey have shown that those between the ages of 21 – 40, with a tertiary education, are employed in upper management, and have never owned a private property, or have owned one to two private properties before are most sensitive to the branding of developers. It was also shown that a majority of respondents were willing to pay up to a 3% premium for a developer they regarded as reputable. A comparison between the eight subject developers was carried out in order to find the mean brand image and mean brand awareness scores by the respondents. This serves as a link between the respondent’s knowledge of the developer and the impression they have of their developments. The study has shown that it is indeed an option for developers to continue developing branding as a form of competitive advantage, as can be seen from developers such as City Developments (CDL) and CapitaLand.