Trustworthiness Leads Customers to Pay 20-30% More
TERRA Media and Consulting Reveals Consumer Survey on Top Strong Brands in Real Estate, with Sansiri Holding the Championship for Three Consecutive Years, Advising Real Estate Operators to Build Trustworthiness, Resulting in Customers Willing to Pay 20-30% More as They View It as an Investment with Resale Potential
Sumitra Wongphakdee, Managing Director of TERRA Media and Consulting Co., Ltd., stated that Sansiri received the highest Brand Powerful Score at 66% from survey respondents. Over 90% of respondents are well-acquainted with the Sansiri brand and view it as a leader in various aspects, including construction standards, after-sales service, quality, unique design, age-friendly designs, and innovations for living. They also perceive it as a brand that understands the needs of residents and investors, reflecting the identity of the owners and instilling pride in ownership.
Following closely is “Land and Houses,” but this year, the survey on after-sales service shows that Sansiri has surpassed them, reflecting that during the crisis, Sansiri did not remain stagnant. Nevertheless, Land and Houses still holds a good score regarding quality standards, maintaining the top position.
“Brand building is crucial, especially during a crisis when a brand becomes more valuable. For instance, during the recent COVID period, medium and small real estate companies nearly shut down projects due to poor sales, while Sansiri, SC Asset, and AP continued to sell, demonstrating that the brand is important because it represents more than just a product,” she noted.
Sumitra mentioned that during the crisis, Sansiri announced price reductions and offered promotions for two years of free living, while Land and Houses stated they would not reduce prices because of their quality homes, which contradicted the purchasing sentiment of those needing to buy homes during an economic downturn.
“From three years of experience in surveying and researching real estate brands, we found that customers feel that real estate brands help elevate their social status. Living in a Land and Houses or Sansiri home makes one appear good, stylish, and successful. Focus group results show that people interested in buying real estate, whether houses or condos, within six months to a year, will choose to buy from major brands if everything else is equal, such as location or price, because they see larger brands as having more value and future worth than smaller brands,” she added.
This shift is due to changing consumer behavior. In the past, most people bought homes with the mindset of long-term residence, but now they are starting to consider future resale potential, similar to cars. This reflects a change in Thai people's feelings towards housing, reinforcing the belief that real estate is a good asset because, in times of trouble, it can be sold for a significant amount to pay off debts, and still leave some profit, making it an asset that can be lived in and generate income.
“Currently, customers are comparing more, similar to how companies compare car brands with home brands. Buying a house is now seen as an investment, and it can be bought and sold like a car, unlike in the past when Thai people never compared homes to cars because they bought them for long-term living. Now, homes are viewed as investment opportunities,” she explained.
According to survey respondents, when comparing real estate brands to car brands over the past three years, the rankings have changed. From the 2020 survey, the image of “Sansiri” remains likened to a BMW at 34%, while “Land and Houses” is perceived as mature, trustworthy, and high-quality, comparable to a Mercedes-Benz at 53%. This year, “SC Asset” has shifted its image to align with Mercedes-Benz at 26%, up from last year’s BMW. “Ananda” this year is likened to a BMW at 25%, up from being a Mini Cooper. “AP Thailand” continues to be associated with Honda at 27% for three consecutive years. “Q House” has shifted its image to Toyota at 23%, from BMW last year and previously Volvo.
“Supalai” remains associated with Toyota at 28%, consistent with last year's survey. “Origin” is now perceived as MG at 23%, up from Mazda. “LPN” continues to be associated with Toyota at 33% for three consecutive years. “Property Perfect” has an image of Toyota at 20%, down from Honda. “Pruksa” remains associated with Toyota at 38% for three consecutive years. “Sena” is now perceived as Isuzu at 23%, down from Toyota last year, and “Golden Land” has an image of Toyota at 23% for two consecutive years.
“After three years of research, we found that real estate brands hold significant value for customers because real estate is an asset with enduring value and price stability. Customers are beginning to believe and understand this, thus associating brands with the concept of stable pricing. For example, Land and Houses can sell at a higher price than other projects while having similar or comparable land and construction costs,” she concluded.
As customers are willing to pay 20-30% more for branded projects compared to non-branded ones, operators must provide excellent service and build customer confidence, not just rely on advertising. In the future, operators that do not build their brands will find it increasingly difficult to survive.
