For years, property portals like Rightmove, Zoopla, and OnTheMarket have dominated the online real estate market, serving as the go-to platforms for property searches. However, recent research conducted by communications agency Oracle, in partnership with YouGov, reveals a potential shift in buyer behavior, particularly among the younger demographic. In this article, we will explore the findings of this research and discuss how it could shape the future of property marketing and investment.
Understanding the Research
Oracle’s study surveyed a representative sample of 2,054 adults and examined their preferred sources of information when looking for a home to buy or rent. The results showed a significant divergence between different age groups. Only 28% of 18-24 year-olds cited property portals as their most trusted information source, compared to 45% of 25-34 year-olds and 43% of 35-44 year-olds. This shift signifies Generation Z’s skepticism towards traditional advertising and their preference for personal recommendations, social proof, and influencers.
Key Findings
The research revealed several intriguing insights into Generation Z’s preferences:
- Trust in Peer Recommendations: Around 16% of 18-24 year-olds placed more faith in other people’s reviews and recommendations through sources like Trustpilot, a significantly higher percentage than older age groups.
- Preference for Personal Interaction: A surprising 23% of Generation Z respondents indicated that they would most trust a personal interaction with an estate or letting agent when searching for a property.
Implications for Property Portals
The decline in trust among Generation Z could have a profound impact on the dominance of property portals. Caroline Coskry, Chair of The Oracle Group, explains, “Websites such as Rightmove and Zoopla have been central to British house-hunting habits for around two decades now, but that dominance could soon be disrupted.” The study suggests that new forms of property marketing, focused on authenticity, social proof, and influencer-driven tactics, may gain traction among younger buyers and renters.
Lessons from FMCG and Fashion Industries
To gain insights into potential future directions of the property market, it is worth examining similar shifts in other industries. The Fast-Moving Consumer Goods (FMCG) and fashion sectors have witnessed remarkable changes in recent years due to platforms like TikTok Marketplace and Depop. These platforms have successfully elevated Generation Z-friendly content, recommendations, and influencer-driven selling. Property developers and agents can take cues from these industries to capture the attention and trust of younger buyers and renters.
Preparing for the Shift
Caroline Coskry emphasizes the importance of understanding the sources of information that people trust and tailoring property marketing strategies accordingly. She suggests that the industry must be ready to adapt to the preferences of the next generation of buyers and renters. Oracle’s track record of successful influencer-driven campaigns demonstrates the potential of such approaches in reaching Gen Z. By embracing trends centered around authenticity and social proof, real estate professionals can position themselves at the forefront of the changing landscape.
Conclusion
The property market, which has long relied on online portals, may be on the verge of a transformative shift. The research conducted by Oracle and YouGov indicates a decline in trust among Generation Z, prompting the need for alternative marketing strategies. As younger buyers and renters seek more authentic and personalized experiences, property developers and agents must adapt to these evolving preferences. By embracing influencer-driven campaigns and leveraging social proof, the industry can effectively capture the attention and trust of the next generation of investors. The future of property marketing will undoubtedly be shaped by these changing dynamics, and investors must stay informed and proactive to make the most of emerging opportunities.