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How did the premium property market fair in 2023 and what does this mean for the year ahead?

Firstly, I hope you had a great Christmas and Happy New Year (I always think this can be said up to my birthday on 19th January).
How did the premium property market fair in 2023 and what does this mean for the year ahead?
As a kid, I always seemed to get an average birthday present with it being so close to Christmas and it felt the same being an adult as well, when my friends were doing dry January or had no money until payday.

I hope to do the opposite for you by bringing an exciting present to start the year by highlighting just how much opportunity there is in the premium market in 2024.

Here is how the premium property market in 2023 compared to recent years:

1.New listings were up by 6.28% on 2022 and 23.59% up on the five-year average of 2019-2023.

2.There was a 21.78% increase on the number of price reductions on 2022 and this was also 16.93% higher than the five-year average.

3.Sales agreed were 18.52% down on 2022 and 16.86% down on the five-year average as well.

Looking at this data showed me that the premium market is growing in terms of new listings, and with price reductions on the rise and the number of sales being agreed taking a hit, this gives a great opportunity for pro-active agents to target those properties struggling to sell.

There was a clear rise in sellers changing estate agents in 2023 or withdrawing from the market altogether as conditions got tougher.

In my last year as an operating estate agent, 38.37% of my sales came from sellers who had failed to sell with another estate agent.

This wasn’t even the best bit!

These sellers proved to be more motivated, realistic on pricing, and willing to pay higher fees.

Now, how can you strategically target these properties?

Back in October, I gave some ideas on how to attract these sellers and below are four bonus tips for you:

1.Mobile Optimisation - Highlight to sellers that over 70% of Rightmove traffic is on a mobile device, so point out if their advert is maximised for a phone or tablet as opposed to desktop. 

2.Video Tours - According to Rightmove, 66% of listings do not have a video or virtual tour and I have found this to be the case a lot at the higher end of the market, which astounds me. 

Rightmove says a listing with a video/virtual tour receives on average 8% more views and 6% more leads than those without.

As an example, advise sellers with land that a presenter led video tour and some drone footage would show off their property to a wider audience.

3.Detailed Floor Plans - This should go without saying but making sure a listing has a floor plan.

37% of buyers say they would not enquire about a property without a floor plan. 

This might sound very basic but again I have seen many listings at the higher end of the market not having detailed floor plans and Rightmove data shows having a floorplan increases leads by 12%. 

The floor plan should include all the measurements of the house, an overall square footage, any outbuildings, and stables that a property may have.

The overall plot and any land should also be clearly displayed on the advert as well. 

4.Strategic Pricing - Make sure the asking price aligns with the right pricing brackets to attract a broader audience. 

Consider using offers over or a guide price to stimulate competition among buyers rather than just sitting on top of the market. 

While these strategies may seem fundamental, a closer look at unsold properties in your area may reveal a surprising number lacking these essential elements. 

If the owners of these properties are on your database, give them a call or drop them an email to let them know what they can improve on.

For the owners you don’t know, send a highly targeted letter to them with a QR code linking to a video of you giving a marketing review of their listing.

Providing constructive feedback on how these sellers can enhance their listings worked for me when I was an agent and it’s delivering similar results for the agents I now work with as well.

If you find yourself struggling to get started with the above, just remember:

Imperfect action is always better than perfect inaction

Thank you for reading and here’s to a prosperous 2024 in the premium property market!

Simon Gates

P.S. You can CLICK HERE to watch my recent conversation with David and Matt on their exceptional Property Porn Stars Podcast that was released this week.