Condominiums(a.k.a apartment in Korea) are considered as the most typical residential type recently. It had been quite easy to find consumers for newly constructed condominiums when the supply was much less than the demand. However, as the housing sup...
Condominiums(a.k.a apartment in Korea) are considered as the most typical residential type recently. It had been quite easy to find consumers for newly constructed condominiums when the supply was much less than the demand. However, as the housing supply ratio has gradually been increasing, the conditions of residential housing market were changed to look for potential consumers. Consequently, more systematic and scientific sales marketings activities are required for successful condominium sales at the changed market environments. Therefore, the effective sales marketing activities are indispensable to meet the goal of successful condominium sales.
In this study, the subscription rate and the initial contract rate are considered as the performance of sales marketing activities. The subscription rate and the initial contract rate act as the critical factors for suppliers to draw success or failure regarding the turnover of capital for funding construction. This study is focused on examining how the subscription rate and the initial contract rate are influencing the process of actual condominium sales, and also analyzed the most effective ways of achieving successful sales performance from the perspective of housing suppliers. The unequaled distinction of this study is that the actual data of contract rate are collected and analyzed regarding the factors influencing buyers to close contracts, and various marketing activities for condominium sales and performances were thoroughly measured and examined.
The results of this empirical analysis are as follows. Frist of all, it was the subscription rate factor that could make the best explanation for the initial contract rate. Second of all, it is a basis for increasing the number of inbound calls at the point of condominium sales to secure the effective DB of potential customers, henceforth the subscription rates and the initial contract rates during the formal contract period. As a result, both building up the effective DB of potential customers and increasing the number of inbound calls are the most effective ways of condominium sales marketing activities.
In addition, with the examined cases in Seoul, Gyonggi, and Incheon area, it is confirmed that the most important factors of marketing activities for condominium sales are the number of effective DB and inbound calls. To increase the related numbers, the factors of preliminary sales marketing activities, of model-house management, and of formal marketing process should be treated with great care. Third of all, the major factors that sellers should take care of might be varied depending on the relevant market situation. Especially when the low subscription rates are expected, the sellers should consider each factors while comparing the successful with unsuccessful sales case.
In this study, regarding the answers for whether the characteristic factors of sales marketing activities significantly influence the subscription rate and the initial contract rate, it is concluded that they positively affect the sales marketing performance. It is an essential assignment for the success of condominium sales business to effectively manage the factors in the process of sales marketing.
This study has great significance on laying the foundations for empirical study of condominium sales marketing, and also has drawn up guidelines for utilizing practically effective sales marketing activities. However, due to the unusual characteristics of real estate products and its market, it is not quite appropriate to generalize the effect of real estate marketing activities into other fields. To overcome the difficulty, further researches using case studies are required.