THE IMPORTANCE OF BRANDING CONDOMINIUMS

Abstract

‘‘Buildings age and become dilapidated. Machines wear out. People die. But what live on are the brands.” (Sir Hector Laing) We have not seen much application of branding in the real estate since its introduction into the market in the 1960s. The objective of this paper is to investigate the importance of branding in condominium projects from buyers' and developers' perspectives by answering the research question, “Does branding of real estate developers increase buyers' purchase?’’ The results in this study have indicated that branding is important in real estate. It was found that a developer's reputation is an essential factor in attracting prospective buyers to showflats. It also has a positive impact on buyers' purchasing decision. The correlation between a developer's reputation and ability to sell condominium units at higher prices is also strong. The study found that, most buyers (66.5%) are willing to pay a price premium of about 1 to 3% for properties constructed by reputable developers. Despite the importance of branding on buyers' purchasing decision, reputation is commonly disregarded among developers who place greater emphasis on location and price of the property. None of the developers make use of corporate branding: using their brand names as a selling point to attract potential purchaser. Instead, they focus on product branding where much emphasis is placed on differentiating their projects. It is hoped that the findings in this dissertation can help real estate developers better understand the importance of branding in real estate. This research also provides a basis for developers to reflect on their current practices and to consider how they could better capitalize on their brand assets.