In Developers, Project Marketing

A Different Market Requires a Different Sales Channel When it comes to Securing Pre-Sales

Where traditional sales channels are seeing more tepid results of late, Munro Donen of Whiterock Capital Partners says that their focus on private sales channels is better positioned to assist developers who are still in the process of securing qualifying sales for finance purposes.


With sales volumes having fallen for new off the plan projects partly as a result of tightening lending requirements and the flight of Chinese investors from the Australian market its never been more important to have access to a prequalified database of clients who are ready to take advantage of opportunities resulting from the current market conditions.

Whiterock works with a vast network of ccountants financial planners and wealth advisors to identify and source well researched investment opportunities for their client base.In today’s world of social media and internet tracking its very easy for potential buyers to easily identify a ‘developer in distress’, says Munro Purchasers are savvy and will swoop in for a fire sale.

“Scare mongering media tactics to attract readers are drawing buyers’ attention to distressed Vendors – and vendors themselves expose their own vulnerability through desperate marketing tactics: for example free stamp duty, rental guarantees and free cars.”

From Whiterock’s experience developers constantly approach them once they have tried every other traditional avenue and expect us to step in and clean up.

The issue here is that developers have already over exposed projects in the market, the projects are on every property portal and still have not sold enough units successfully through the traditional avenues, which damages the integrity of the project to varying degrees, dependent on the length of time on market.

Whiterock’s approach is very different as we are work through our reliable sales channels that are able to secure presales “off market” without any expensive advertising and marketing that is usually required by the large project marketers, once pre sales have been achieved the vendor is free to go back to the traditional methods and slowly sell down the remaining stock in a project over the marketing lifespan until or on completion.

In current market conditions a quiet off market approach gets better results and Munro and his business partners have experienced this time and time again having worked through the Sydney property market corrections of 2002 and 2006.

Having worked as a property investment advisor in the financial planning industry, with over eighteen years’ experience in the Australian property market, Munro has a deep understanding of the wealth strategies employed by financial planners which promote investment in residential real estate.


He says: “One has to understand how to ‘package product’ appropriately and couch it in the language required to appeal to this valuable sales distribution channel.”


Whilst fancy brochures , pretty pictures and expensive display suites appeal to the retail market, additional material is required to appeal to investors as their decision is far more clinical and based around numbers, cash flow & taxation benefits.

Munro comments that to be able to approach these sales channels you need to speak their language and it’s more about educating than ‘flogging’ and that’s where he believes the typical real estate agent or project marketer fails when it comes to the advised investor.”

Working with the financial planning and accounting segments of the market, he points out that these buyers have become a lot more discerning and knowledgeable. With the frenzied buying activity that we have experienced over the last few years subsiding, we are back to what Munro terms the ‘real world’ – which means meeting the market on price is essential to pre-sales. Investors want to know they are buying at fair market value.

According to Munro, there has definitely been a flight to quality in all aspects of the product. Developers must be offering smart floor plans and the right finishes in the right areas.

The  quality of builder and developer track record have become important factors too in the decision making process for this audience. They want to feel reassured that they have the financial capacity to complete the projects to the level and standard that today’s discerning buyer is willing to accept.

“Ultimately, we will only work with the right product, but it’s important that the pitch is presented in the optimal fashion and language for this returns-focused audience – and that developers benefit from a large, private exposure to this audience, which is where we’re able to deliver quick, quality results for our clients.”




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