Unveiling Lucrative Opportunities in the Top 10% of the Property Market - Edition 3
In the landscape of the UK property market, there are approximately 30 million properties on the map, with the top 10% being within the council tax bands of F, G, H, and I.
This makes up the premium end of the property market, holding immense potential for revenue in an era where transactions are becoming scarcer.
In navigating this low-volume market, the key lies in seizing every opportunity to maximise revenue.
Exploring Premium Properties:
Venturing into the realm of premium properties can unveil a remarkable revenue stream.
In a market characterised by fewer transactions, the allure lies in the higher value of homes and the substantial fees sellers are willing to invest in securing a deal.
In a recent podcast recording of, "Opening The Gates To More Listings," with David Lindley, he shed light on the fact that while sales of properties at or above £1,000,000 constitute only 5% of overall transactions, a staggering 27% of all estate agent fees are attributed to this exclusive bracket.
Market Dynamics:
There have been 13,801 recorded sales at or above £1,000,000 so far in 2023 on land registry, translating to a staggering £30.95 billion in property value.
A comparative analysis of the five-year average in October from 2018 to 2022 reveals a 25.83% increase in new listings at or above £1,000,000 in October 2023 and the number of sales agreed is practically identical, indicating a burgeoning appetite among luxury home sellers to make a move.
Nevertheless, across the entire market, new listings have experienced a 7.19% decline compared to the five-year average, and sales agreed have plummeted by 19.48%.
This stark contrast underscores the remarkable resilience demonstrated by the premium sector in recent times, particularly in the face of heightened affordability challenges plaguing the lower to middle segments of the market.
It is evident that the higher echelons of the market offer a promising landscape for those seeking more than just stability in the currently challenging conditions.
Accessing the Premium Market:
The quest to access this lucrative market requires strategic initiatives.
A success story of mine involves a client breaking into the upper quartile by targeting seemingly unlisted properties, and sending letters on behalf of prospective buyers.
Through this innovative approach, he not only listed a £2,000,000 property but also spawned a chain reaction, resulting in six additional listings over £1,000,000 and appraising an additional £9,000,000 in property value.
I strongly advise proactively identifying potential buyers seeking properties aligning with the types of property you want to sell and actively engaging in assisting them throughout their search process.
Leveraging both social media platforms and targeted direct mail campaigns enhances your outreach, significantly improving the likelihood of eliciting responses from affluent homeowners who are potentially looking to move in the future.
Key Takeaway:
In this realm of untapped potential, opportunities abound for those willing to seek them out.
The lesson is clear, the best seller leads may be veiled as buyers, and the path to success often involves unconventional strategies.
The key to the premium market is to recognise the latent opportunities and employ innovative approaches.
The story of breaking into the upper quartile through strategic targeting and creative outreach underscores the vast potential waiting to be unlocked.
Just remember, some of the best-seller leads are masquerading as buyers.
Thank you for reading.
Simon Gates
P.S. For exclusive early access to my interview with David Lindley, kindly reach out, and I will be delighted to share it with you before its official podcast release.
