Premium Property Marketing Masterclass - Edition 1

I have explored the dynamics within this exclusive segment from my time with John D Wood, Hamptons, Knight Frank, and Fine & Country, alongside data derived from TwentyEA and YouGov in conjunction with my agency unchained.marketing's annual Voice of the Agent survey. 

 

The average valuation of a UK property at instructions stands at just over £420,000. In contrast, prime real estate properties (£750,000+) have an average valuation of over £1.4m. More than three times the average. This makes a big difference.

 

To get a sense of scale, there have been over 1.5m new instructions in the last 12 months; just 162,000 can be called prime. And that's not getting in super prime - the top 5%, where there are just 81,000 properties above £1m. The property market gets very thin, very soon at the top of the pyramid.

 

Beyond property valuation, there's also a discernible distinction in the fee structure of estate agents. The general market average for agent fees is 1.42%, whereas agents specialising in prime real estate command an average fee of 1.58%. While this disparity might seem marginal in percentage terms (a mere 11% more), the implications on revenue are substantial. To illustrate, the average commission derived from a standard property transaction is £6,000, while prime property transactions yield an average commission of over £22,000.

 

Furthermore, while prime real estate brands account for 10% of market instructions, these instructions represent 34% of the market by property value. Add in the fees, which translates to a 38% share of total market fees, reinforcing the assertion that prime brands, though handling fewer properties, dominate income potential for agents.

 

So, who are these affluent people?

 

They combine both metropolitan allure and rural prestige. Their homes, ranging from lavish city apartments to spacious detached houses in exclusive suburbs or large country houses, reflect their high social status. Many of these homes sit on upmarket city streets, while others nestle within the serene beauty of the suburbs or in charming nearby towns and countryside.

 

The varied household structures encompass prosperous young professionals, wealthy established families, and affluent older couples, some with young adults or children and others relishing a peaceful life post-retirement. While many own these luxurious properties, a surprising number rent their homes – the HENRYs (High Earning, Not Rich Yet), paying top-pound for the privilege.

 

Accessibility is a hallmark of their living choice. For city dwellers, everything from business opportunities to cultural events is just a stone's throw away or easily reachable via efficient public transport. Those in the suburbs or nearby towns and villages benefit from tranquil environments while maintaining strong city connections.

 

Professionally, they're a formidable force. Whether they're thriving in the city's hustle and bustle or enjoying the rural serenity, many hold prestigious managerial, directorial, or professional roles, especially in the information, financial, scientific, and technical sectors. 

 

Their high-earning capacities allow them significant discretionary income, channelled into lavish lifestyles and diverse investment portfolios.

 

In terms of digital connectivity, they're a mixed bag. While the younger and city-based individuals are almost perpetually online, valuing the immediacy of information and connectivity, the older or more suburban counterparts rely on the internet mainly for practicalities, like finance management or occasional shopping. 

 

However, they all appreciate staying informed, with many turning to digital and print newspapers. These are sophisticated, well-educated, and informed consumers.

 

Shopping preferences range widely. City dwellers, with abundant shopping options close by, often frequent high-street supermarkets and local boutiques, with a taste for organic and premium products. Meanwhile, those in rural settings might lean more on their plush vehicles, often more than one per household, to visit nearby shopping hubs or to embark on leisurely drives.

 

In essence, these individuals have tasted success and made it an integral part of their lifestyle. They represent the seamless blend of urban sophistication and rural tranquillity.

 

Once you know who they are, you need to know what MESSAGE to use and in what MEDIA. 

 

More on that next time.