- Home buyer preferences have greatly changed since Covid-19, with home features prioritised over community amenities
- Key elements include multifunctional spaces, optimal sunlight, views, luxury finishes and smart home technology.
- Developer credibility and prime location with good transport and service access are crucial to driving demand.
Regular contributor to The Property Tribune and Executive Partner at Plus Agency, Fiona Yang, gives her insider tips into the key elements that make homes sell faster and fetch higher prices.
One of the most surprising things about the home market today is how different it looks from 2019.
Buyer preferences have changed significantly since the outbreak of the Covid-19 pandemic. Before Covid, new home buyers placed a great deal of value on exclusive community amenities such as gyms, pools, BBQ areas, and cinema rooms. These features were considered convenient and prestigious.
The pandemic and the lockdowns, however, made buyers focus more on the features of their own homes and less on community amenities.
Today, when we draw out a cost-benefit matrix to help buyers evaluate their potential purchases, we find that there are 10 characteristics for which buyers will typically pay more than for otherwise comparable properties.
Following is more detail on the ten irresistible features that sell new homes at a premium.
1. Multifunctional Spaces
Versatile layouts cater to diverse needs, offering flexibility in how residents use their living spaces. For example, the home office that can easily be converted into a guest bedroom or a home gym will be much more valuable because residents know it will accommodate their evolving lifestyle.
2. North-South Facing Layout
Properties that have optimal sunlight exposure throughout the day provide a well-lit and comfortable living environment. An example property would have floor-to-ceiling windows in the bed and living rooms. Visualise that, and then compare it to a nearby home, which is otherwise identical, but whose windows are dark and seldom admit direct sunlight.
3. Breathtaking Views
Unobstructed views of scenic landscapes, the Harbour, or attractive city skylines provide the occupants of a home with natural beauty that they can enjoy without even going out their front door. That enhances their overall living experience.
For example, at Shepherds Bay in Meadowbank, water-view homes command significantly higher prices than other new homes without water views.
4. Luxurious Finishes
High-end materials and finishes contribute to a sense of opulence and sophistication. These include luxury kitchen appliances, marble bench islands, feature walls, glass panels and LED lights in the wardrobes, and custom-designed fixtures in luxury homes.
Underfloor heating is another luxury feature that is growing increasingly popular across new homes in Sydney, despite the relatively mild climate.
5. Distinctive Architectural Design
Buyers will pay more for architecturally unique properties that stand out for their innovative and aesthetically pleasing designs. Homes designed by renowned architects or interior designers will always find a more motivated buyer. But beware, this doesn’t include all homes that have been designed to an owner’s quirky sense of taste.
6. Positive Reputation and Credibility
Buyers have a higher appreciation today than ever before for the developer and builder’s track record and reputation. Plus Agency research in December 2023 found that buyers pay a premium of 8% to 24% for off-the-plan residences that are being delivered by an iCirt rated developer.
7. Smart Home Technology
Advanced smart home automation is becoming a minimum standard in new luxury homes. This technology provides additional convenience, energy efficiency, and a sense of luxury. For example, at the Deluna Residences in Lindfield on Sydney’s Upper North Shore, the terrace houses are equipped with smart thermostats, security systems, and voice-activated controls for lighting and entertainment. Notably, on its opening day, all units were sold out, and the project set new price records for terraced houses in the area.
8. Customisation Options
It’s very simple. When buyers can adjust floorplans, finishes, and other features of a new home to match their personal preferences, they are willing to pay more than when they buy a standard unit with features and finishes chosen by the developer. We strongly encourage developers to permit customisation in preconstruction sales because it will maximise their profitability at relatively little effort.
Sometimes, buyers’ requests for customisations are out of the ordinary. For one client, we buried copper plates under the floor of their new multimillion-dollar townhouse on Sydney’s North Shore as the buyer believed that feng shui principles meant the copper plates would provide good fortune.
9. Appreciation Potential
Buyers are smart and are willing to pay more for property whose value they believe will climb quickly. They will make higher offers for homes located in neighbourhoods with a history of steady appreciation, or that are near future new schools or metro stops.
10. Prime Location with Convenient Transportation
The saying is, “Location, location, location,” because it’s well known that location is the most important value creator for homes. Buyers want proximity to key services, entertainment, and transportation hubs. Buyers are happy to pay a median of $9.2 million in Sydney’s most desirable suburb, compared to the city-wide median price of $1.6 million.
