What do Kiwi buyers really want from their homes?
That's the question we set out to answer as part of our new research study—Better Builds for Buyers: Homes, not units—and the findings have revealed critical learnings for developers, serving as a wake-up call for those wanting to succeed in a difficult off-plan sales environment.
The research, conducted in partnership with insights agency TRA, found that while 82% of future buyers are open to buying off-plan, only 32% would seriously consider it—and the biggest barriers to purchase are a lack of emotional connection, trust and confidence.
Squirrel founder, JB, says the study shows that prospective buyers are being put off by cookie-cutter off-plan homes which don’t suit, and can’t be tailored to meet, their emotional and lifestyle needs.
"A home has to be functional, of course, but once those boxes have been ticked—enough bedrooms, parking, the right location—the deciding factor becomes, well, how would it feel to actually live here?"
"Does the layout and design suit my lifestyle? Can I make it my own? The one-size-fits—all design approach we see within so many developments often makes it hard for buyers to see themselves in the space—and when that happens, they walk away.”
The findings also highlight the significant reputational issues the off-plan industry is facing.
JB says, “At the end of the day, buyers just don’t have confidence that the finished product is going to live up to what’s been promised, or even that it’s actually going to be built. A big part of that is because they don’t have the chance to genuinely experience, and get a feel for, what they’re buying beforehand—especially when it comes to important aspects like noise, privacy and durability. They’re essentially going in blind.”
Key research findings:
- Having a sense of control, connection to nature, and visual reassurance are critical to buyers’ decision-making process.
- Kiwi don’t just think of garages, spare rooms, and storage as functional; they help to deliver emotional peace of mind.
- The top ‘must-haves’ for buyers when considering buying a property include lawn space; fencing / privacy measures; built-in laundry; walk in or built-in closets and storage; a patio, deck or balcony; and storage space for tools, sports or outdoor equipment.
- Customisation options (even small ones, like being able to add a desk nook) help to create a greater sense of ownership and reduce perceived risk.
- Buyers need to see to believe when it comes to levels of light, warmth and privacy when considering off-plan homes. Offering buyers the chance to experience these elements helps to establish trust and confidence.
Daniel Talbot, TRA’s Strategy and Innovation Director, says, “There's this common assumption that New Zealanders aren't keen on off-plan homes, especially townhouses. However, our research shows that this isn't the case. 8 in 10 future home buyers are open to purchasing off-plan and 6 in 10 are open to off-plan townhouses. The findings suggest that the barrier to buying these homes isn't people’s willingness, but how homes are built.”
JB adds, “There’s a huge opportunity for developers who can find ways to bridge the gap—and it doesn’t have to be difficult.
"It’s things like bringing builds to life through realistic visualisations and on-site experiences; incorporating layout and design variations into developments; and providing options for personalisation so buyers can have that sense of ownership and individuality.
“The developers who prioritise that will be the ones who win in a slower market.”
The full Better Builds for Buyers: Homes, not units research report can be downloaded here.