Every year, TerraHint Brand Series 2023 continues its tradition for the sixth consecutive year, organized by TERRA BKK, a media outlet focused on real estate and marketing research consultancy. This year's seminar is titled "Brand Series | ONE WORLD: Picking Flowers Shakes the Stars."

This year retains the same interesting activities as before, including a Group Talk on brand development strategies for sustainability (Make Brand Sustainability for Our One World) and the presentation of the Real Estate: The Most Powerful Brand 2023 awards, with four awards given. This year, we were honored to have Sanan Wongsaengboon, Deputy Governor of Bangkok, present the awards and share his vision for the development of Bangkok.

The highlight that everyone eagerly anticipates each year is the in-depth research on consumer behavior in real estate. This year's research is conducted under the concept of "Well-being and Sustainable lifestyles" to guide real estate brands in developing sustainable brand strategies (Make Brand Sustainability for Our One World). Recognizing the importance of developing products, services, and branding in the real estate business is crucial for enhancing the quality of life for people at all social levels. The concept of sustainable project development and improving human well-being (Sustainable Development and Human Well-Being) is gaining global attention, and Thailand has declared its intention to achieve "carbon neutrality" by 2050 and "net zero emissions" by 2065. It is hoped that the research findings and this event will spark new ideas and perspectives for the real estate sector.

Research Summary on Consumer Behavior based on the Concept of "Well-being and Sustainable lifestyles" by Sumitra Wongphakdee, Managing Director, Terra Media and Consulting Co., Ltd.

This research delves into consumer behavior based on the concept of Well-Being and Sustainable Lifestyle, collecting data from two sample groups: 1. Focus Groups (Qualitative Research: Focus Group aged 22-53, data collected from September 25-27, 2023) divided into 9 groups, and 2. Quantitative data from 2,000 samples (Quantitative Research: Online Survey from October 1 - November 8, 2023). From this sample, it was found that over 42% plan to buy a house within the next three years, with a preference for single-family homes and townhomes priced between 3 to 7 million baht. Most respondents have prior experience in purchasing residences, and the key factors influencing their decision to buy a home this year include increased attention to construction materials, followed by security systems, community and environmental considerations, and after-sales service.

"This year's data differs from last year, where consumers prioritized safety first. This year, it has become a secondary concern, reflecting a shift in consumer priorities regarding housing."

When examining products in each category, over 78% of respondents plan to buy single-family homes, primarily from the Baby Boomer group (aged 56 and above) and Gen Y (aged 28-41). Townhomes follow with a 47% share, mainly from Gen X (aged 46-56) and Gen Z (aged 18-27). About 27% plan to buy condominiums, primarily from Gen Z and Gen Y, in the price range of 2-7 million baht.

Consumer Awareness Behavior: Facebook Dominates Across Generations

From the sample, it is observed that this year, consumers across all generations are using Facebook as their primary source for real estate news or information. This may be due to liking real estate pages they follow, after which Facebook's algorithm serves them interesting content, leading to continuous information consumption. Other secondary sources include real estate company websites, Google searches, housing-related websites, and reviews by bloggers and influencers.

"Previously, consumers preferred to search on Google first for housing information, but this year, Facebook has returned to the top spot as they want to see reviews through the pages they follow. However, they still do not abandon Google searches, while views on YouTube and Pantip have noticeably decreased."

"As for watching long video reviews, consumers still show interest, especially for projects they are genuinely considering. However, video reviews must be authentic and not overly polished; simply having project staff show the project is sufficient, without needing influencers to lead the tour."

Consumer Confidence Trends: Optimism in the Economy, but Not a Good Time to Buy Real Estate

Listening to consumer confidence trends in 2023, the index stands at 76%, down 4% from last year's 80%. Although the overall index has slightly decreased, most groups, including business owners, civil servants, freelancers, private company employees, specialists in specific professions, and even the unemployed, still view the overall economy positively. However, they do not see their personal financial health improving, especially among specialized professionals like doctors or lawyers, who believe this is not a good time to invest in high-value assets such as real estate or cars.

The reasons for this include consumers still perceiving several unstable factors, such as a slowing economy, rising interest rates, tightening financial institutions, and increasing real estate prices due to new construction costs, which affect new loan applications, causing some customers to delay their purchasing decisions.

This aligns with data from the TerraBYTE application, indicating a slight decline in the real estate market in 2022, particularly in the condominium market, which has seen a significant drop. This is the largest market segment in housing, with fewer supply launches and reduced sales rates. The townhome segment is recovering, especially for homes priced above 5 million baht, which have seen increased sales rates, while the single-family home market is also growing, particularly for homes priced between 10-25 million baht, which continue to see steady sales growth, primarily from real demand with high income, savings, and less economic impact, leading to a desire to change residences.

New Era Living Behavior: Homes Must Serve as Both Relaxation and Workspaces

Regarding living behavior in 2023, most people prioritize home activities, requiring their homes to be both relaxation spaces and conducive to working from home. They emphasize two areas within the home: relaxation in the living room, lounge, or multipurpose room, and work-from-home spaces, along with an increased desire for outdoor areas or gardens. This is categorized by housing type:

  • Single-family homes: Residents use outdoor spaces for exercise, while the living room is used for gardening and pet care. The master bedroom is utilized for relaxation beyond just sleeping. Therefore, future single-family home designs may need to include small relaxation areas in bedrooms, not just beds or walk-in closets.
  • Townhomes: Residents, typically small families of 3-4 people, prefer to cook at home, making kitchen space insufficient for their needs, often using the multipurpose room downstairs for food preparation.
  • Condos: Condo dwellers not only use the living room for relaxation but also require it as a workspace. Therefore, real estate developers should consider how to design modern condos that allow for both relaxation and work simultaneously. Regardless of generation, there is a shared emphasis on exercise, gardening, and hosting parties within their homes.

Additionally, when looking at the behavior of residents using common areas, single-family home and townhome residents spend time in common gardens with their pets, while condo residents focus on relaxation in the common garden. This behavior can guide real estate developers in future projects to pay more attention to common gardens to accommodate pets, such as providing walking paths for pets and ensuring hygiene for them.

Different Definitions of the Ideal Home

This year's research reveals that the ideal home consists of three aspects: Comfortable and Convenient Living, Safe and Secure Environment, and Well-Being. Most people believe that living in a new society requires a complete environment that is peaceful, equipped with amenities, and utilizes smart home technology. Homes must provide relaxation and privacy, as residents seek to live in a good environment, all aimed at enhancing both physical and mental well-being.

"The definition of well-being from new housing purchases varies among generations. For instance, those buying luxury single-family homes seek spiritual well-being from their homes rather than social well-being. Thus, many luxury home projects do not feature large common areas, as this demographic does not desire extensive social interaction, preferring neighbors of similar status without needing many communal activities. In contrast, those purchasing townhomes or condos seek social well-being and community activities."

Moreover, the definition of home varies among generations. Gen Z seeks privacy from parents, Gen Y desires relaxation and release from stress due to high pressures from the COVID-19 situation, Gen X seeks family relaxation, and Baby Boomers prefer socializing with friends.

Overall, communication regarding housing indicates that for luxury housing, homes must meet all life needs (Wonderland). For the premium segment, homes represent personal assets and identity (Settlement), while for the mass segment, homes must enhance quality of life.

Living Sustainably as a Part of Life

The research shows that sustainable lifestyles vary among different groups. Gen Z (aged 18-27) is particularly mindful of transportation, primarily using public transport. Gen Y (aged 28-41) focuses on energy conservation, such as turning off lights when unnecessary. Gen X (aged 46-56) is interested in food and health, such as reducing meat consumption or eating seasonal vegetables. Baby Boomers (aged 56 and above) show the highest interest in sustainability, increasingly focusing on green technology like solar panels.

Of course, the interest in sustainable lifestyles across different generations leads individuals to favor brands that align with their values.

These insights also reflect consumer demand for homes that align with sustainable lifestyles, guiding future real estate project developments, such as universal design, spa areas or health recovery services, health and physical therapy activities, health assistance services, energy-efficient homes with solar cells/insulation, PM2.5 and virus air filtration systems, and innovations that enhance comfort, such as smart homes, EV chargers, and effective waste separation systems to reduce waste and protect the environment, along with pollution-free construction that is environmentally friendly and reduces carbon emissions.

Four Prestigious Awards from Real Estate: The Most Powerful Brand 2023

For the announcement of the Real Estate: The Most Powerful Brand 2023 awards, the winners this year include Sansiri Public Company Limited, marking their return to the awards. They excel in Brand Fame, being a well-known brand, Dynamic, constantly adapting, and Trusted, as consumers trust their quality. These three aspects are crucial for consumer purchasing decisions, making them the number one brand in terms of being a "leading brand," especially in the "single-family home" segment, and the top brand consumers consider purchasing, particularly among Gen Z and the middle-income group.

Meanwhile, Land and Houses Public Company Limited received the Credence Award this year, awarded to companies recognized by customers for quality and ranked number one in the top four attributes consumers expect the most: construction standards, quality, good after-sales service, and safety. They also ranked number one in terms of being the most recommended brand by homeowners, with the highest Net Promoter Score of 56% (industry average 24%).

Magnolia Quality Development Corporation received the Sustainability Development Award in Real Estate 2023, as MQDC is a brand that fully meets the needs of consumers with sustainable lifestyles, emphasizing clean energy, energy-efficient homes, reducing carbon emissions, environmentally friendly construction technology, and designs for the disabled/elderly, establishing itself as the leading brand in sustainable development across social, economic, and environmental aspects in line with the concept of Sustainable Development.

Piam Suk Property Development Company received the Marvel Award this year, recognizing them as a company with a prominent image comparable to major brands in the market and having the highest Powerful Score among small brands (Non-Public Company).

"Overall, the characteristics of good brands in the eyes of consumers this year revolve around 3-4 main aspects, regardless of whether the housing is in the luxury segment: it must provide a sense of safety, construction standards, quality, good after-sales service, and value for money."

This year's brand research highlights that consumers are increasingly valuing sustainability, leading many brands with clear sustainability policies and activities to achieve notable Brand Superiority scores, such as MQDC, SANSIRI, and A5.

Brand Perception: Comparing Brand Awareness by Housing Type

Another survey that helps developers understand which brands consumers think of includes:

  • Single-family home brand awareness: High-priced, high-quality brands include SANSIRI, Q House; brands that resonate with personal identity include PROPERTY PERFECT, SUPALAI; and creative brands include SC ASSET.
  • Townhome brand awareness: Dream luxury brands include MQDC; brands that resonate with personal identity include SC ASSET, AP, PRUKSA; and creative brands include FRASERS.
  • Condominium brand awareness: Eco-friendly brands include SANSIRI; brands that resonate with personal identity include ANANDA, SUPALAI, AP; and accessible brands include LPN.

Brand Image: Real Estate vs. Cars 2023

Finally, the eagerly awaited survey compares real estate developers' brands with car brands through the eyes of home buyers and consumer samples. Overall, this year, many brands have developed significantly compared to last year.

This year, many leading real estate brands in Thailand are compared to luxury car brands like Rolls-Royce, including A5, MQDC, and Singha Estate. At the same time, Singha Estate is also viewed as comparable to Porsche and Audi. Many brands are perceived as BMWs, including SANSIRI, SC ASSET, PROPERTY PERFECT, SUPALAI, ANANDA, Major Development, Patreeda, and Areeya, while several brands are seen as Benz, such as LAND&HOUSES, SANSIRI, Q HOUSE, PROUND, and BRITANIA.

"In terms of consumer perception, Honda and Toyota are viewed similarly in terms of standards, but Toyota sells more easily than Honda, which has more design appeal. In contrast, sports cars are seen as expensive. This year, many real estate brands are likely to fall into the Toyota and Honda categories."

Additionally, there was a survey on Brand Archetypes, where the research team highlighted brands with the most distinct character traits. This year, MQDC remains in the roles of Creator and Magician, with the addition of NOBLE in the Creator category, while Singha Estate continues to hold the RULER role, as it did last year.

This is part of the annual consumer behavior research conducted by TerraBkk, and it is hoped that this year's data will inspire thoughts and provide insights for real estate developers to enhance their products and elevate the Thai real estate industry further.