In this article you will find out how:
- The on-demand economy and need for instant gratification is shaping 2017 consumer’s approach to buying Real Estate
- Virtual Reality can be used for remote property sales
- One New York’s leading Real Estate developers attracted foreign investors to buy luxury condos in Queens
- VR is becoming the go-to solution for the Real Estate market
The consumer change Real Estate market needs to respond to
The emergence of the on-demand economy, where everything you need is just a smartphone tap away, has already disrupted most of the well-established industries worldwide. Modern consumers, expecting instant gratification, innovation, and the best value at the lowest cost, are changing the way companies operate and communicate their value. The real estate industry is also a part of this changing landscape, however, it seems to be falling behind when it comes to on-demand tech solutions.
VR as the new way of reaching 2017 homebuyers
Whether you like it or not, modern buyers shop around by using the latest technologies and apps to search for homes, research real estate information, communicate with friends (and real estate agents) and read reviews. One of the major pain points for the 2017 homebuyer is having to schedule multiple property viewings before deciding to purchase one. That is creating a huge gap between what the customer wants (instant gratification) and what the agent can offer him (effort and time-consuming home viewings). The gap is even larger when homebuyers are looking to buy a property overseas since it requires even more time. This is where Virtual Reality tours come into play, by allowing customers to transport themselves into the property on-demand and in no time. VR not only allows for the property showing from the comfort of customer’s living room, but it also enables them to get the feeling of the space they are interested in. The use of VR tools is even more effective when selling properties to foreign buyers since it enables them to ‘try before fly’, and gives them instant gratification in the form of seeing the overseas property on their phone.
The Grand at Sky View Parc – attracting investors from 7,000 miles away
Foreign sales already constitute around 10% of total real estate sales in the US with the main foreign investors coming from China, Canada, UK, Mexico, and India. Chinese buyers, however, continue to outpace other buyers both with regards to volume and value of their real estate purchases. It is also important to notice that the Chinese tend to buy properties with above-average value. That combined with their purchase power makes them an attractive chunk of the market for real estate developers.
It is no coincidence that this particular group was targeted by Related & Onex for its luxury condos development in Queens. The Flushing district in Queens is also historically significant for the Chinese community and particularly attractive since it combines Chinese traditions with New York feel. The NYC-based real estate developer chose to implement virtual reality property tours into their remote sales campaign of The Grand at Sky View Parc. Together with VR Global, Related & Onex created the array of immersive sales tools to support both onsite and remote sales. To reach potential Chinese buyers Google Cardboard VR glasses were branded and shipped to Chinese buyers. With the help of VR Guided Tour, potential investors were able to transport themselves to Sky View Parc and see the property while being remotely accompanied by the sales agent. This approach was appreciated by foreign investors since it allowed them to ‘feel’ the condo before making the sacrifice of flying out to New York. The sales process continued onsite with the use of a 360-Integrated Sales Center, as well as online with the use of a dedicated landing page and Youtube 360-degree videos, among other media.
The remote sales campaign was very successful as it resulted in the selling of majority of SVP’s luxury condos. With the help of VR Global’s solution, Related & Onex managed to close the gap between the client’s need for on-demand experience (while minimizing risk associated with flying overseas) and agent’s usual inability to provide clients with time-efficient and quality home viewings.
VR making grounds on the Real Estate market?
In the last year, we have seen increasing investments in VR from major players on the real estate market such as JLL or Yareal. The trend is expected to grow, and in the nearest future Virtual Reality might become a go-to tool for real estate sales professionals.