The key factor in deciding to purchase a residence, whether a house or a condominium, is the "location", which comes first. Being close to job opportunities, public transportation, and surrounded by shopping malls, schools, or hospitals is essential. However, in an era where the market is highly competitive, almost every project highlights its potential location as a selling point, leading to diminished differences, similar to consumer products. Therefore, a strong "brand" that is trusted will have an advantage.

During the COVID-19 pandemic, the economic impact has been severe, and real estate is another business significantly affected. Every operator has resorted to pricing strategies to attract customers to buy residences, resulting in a price war. In this struggle for survival, it is the well-known brands that customers have long recognized and appreciated that can achieve substantial sales compared to lesser-known brands.

Ms. Sumitra Wongphakdee, Managing Director of Terra Media and Consulting Co., Ltd. stated that this year, medium-sized operators are heavily promoting their projects, yet customers still prefer to shop for houses and condominiums from well-known large operators. This is because, in the buyers' perception, even discounted expensive items are still seen as more valuable than medium-sized offerings. The trust in "brands" varies, prompting medium-sized operators to recognize the importance of brand building.

"In the past, there was a real estate company that developed a high-end single-house project with complete amenities. However, nearby, there was a project from Land and Houses for sale. Although the locations were close, that operator could not set the selling price equal to Land and Houses due to their brand not being well-known. Nevertheless, after marketing for a while, customers began to experience the product, leading to increased brand recognition and allowing the operator to raise their selling price as planned."

The Managing Director of Terra Media also mentioned that research conducted on home buyers repeatedly shows that the dream home brand is Land and Houses. Therefore, it is not surprising that Land and Houses stands out as the most popular brand in consumers' minds. This is because Land and Houses offers beauty in home designs, project entrance arches, public utilities, and security systems. Importantly, they do not frequently change their brand colors, which could confuse consumers. In a survey conducted last year, when asking older consumers about brands they trust, even if they were not familiar with the details, they would mention that Land and Houses is a long-established brand with reliable projects. Thus, new brands that do not build their brand or create differentiation will find it challenging to compete.

"We emphasize to real estate companies that the principle of brand building should view the brand as an asset, not just a promotional tool for advertising. This perspective will help the business grow. We recommend separating the brand-building budget from the advertising budget (which typically uses 1-3%). In the initial phase of brand building, it may start at 1% in cases where trust is still lacking. Even starting at 1% can yield some results."

Building a real estate brand requires a project entrance arch, security systems, after-sales service, and continuous design changes, among other factors. Especially during the COVID-19 pandemic, people are placing more importance on home living, necessitating work-from-home arrangements. Therefore, today, homes will return to being like in the past, where people showcase their homes, as over the last ten years, people have worked and lived in condominiums, showcasing images from various travel destinations instead.

To date, the level of interest in brand building among real estate operators has increased, evidenced by the support for the upcoming seminar Terra HINT BRAND Series 2020 at the end of the year 2563, which has received double the response from leading brand products compared to the previous year, particularly from medium-sized companies.

Regarding the brand ranking by Terra Media last year, the top five brands in consumers' minds are as follows: 1. Land and Houses, 2. Sansiri, 3. Pruksa Real Estate, 4. AP, and 5. L.P.N. Development. The top five powerful brands are: 1. Sansiri, 2. Land and Houses, 3. SC Asset Corporation, 4. Ananda Development, and 5. AP.

 

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