We are living in a transformative age of real estate. Historic methods of working are no longer necessarily going to produce the same results that they once did. As such, customers are requiring businesses to work harder than ever to attract and retain their business.
One of the fundamental shifts we are seeing drive this is the challenge to the traditional methods of transacting property. And this is not just UK-wide, but a global transformation.
While we continue to look to new horizons for opportunity, as a wider industry we are all aware of the air of uncertainty in the market since H2 2018. However, this is not the first time that the real estate industry has been under pressure. In 2009, knock-on effects from the global financial crisis had a similar impact.
When you look at data from Essential Information Group, there are some similarities which can be drawn between 2008/2009 and 2018/2019. Not only were both of these times shrouded in uncertainty from economic and political events, but what we can see is that from September 2008 to August 2009 there were 32,054 properties offered, with 71% sold. Between September 2018 and August 2019 there were 29,716 properties offered, with 74% sold.
Skills to thrive
The similarity in these statistics is nothing to be afraid of. At BidX1 we certainly don’t shy away from times of market uncertainty or price sensitivity. We are fully equipped to thrive. In this type of market, as with any other, you need to employ the tools at your fingertips to navigate to successful outcomes – and our toolbox just got more sophisticated.
Firstly, you have to deploy your expertise. Most of us can lean on experience from previous times of uncertainty, or market fluctuations. At BidX1 we understand any climate we operate in and are able to react accordingly.
One key trend we have seen in the UK is a steady increase of properties listed to sell by receivers, administrators and insolvency practitioners, as well as central and local government. This trend is reflected by the latest company insolvency statistics, which show an increase in insolvencies in the first half of the year, and it is likely that this is a direct result of strain in the retail market.
The rise in these types of committed sellers is a benefit to business, especially in more challenging conditions. Naturally they have more to sell when the market is difficult, they are driven by a need to achieve a sale within a specified timeframe, and of course want to achieve the best price possible in open competition.
Technology
Not only does our expertise enable us to identify these types of businesses and support their specific needs, but we now have another tool at our disposal to deliver – technology.
By utilising a digital platform, it creates the opportunity for full flexibility, the ability to adhere to shorter timescales with flexible marketing times, to quickly qualify buyers, provide full transparency on pricing – especially where it might be more sensitive – and importantly, utilise a layer of data to better understand buyer sentiment, market trends, pricing, and to create a real-time benchmark for information.
Data combined with our learnt industry knowledge helps us not only align with our clients’ strategies but to turn what some perceive as negative market conditions into positive outcomes.
I feel passionately that real estate advisers across the industry must be aware of prevailing market trends and where the market is.
As we see a continued rise in the number of properties coming to market through committed sellers, such as receivers, this will bring a much needed increase in levels of stock.
I look forward to the opportunities this provides for the new world of digital sales, as I believe that the current technology available, the transparency, agility and efficiency that it affords us, provides the tools to excel in any market – something that only 10 years ago was only a pipe dream for the real estate industry.
Oliver Childs is head of commercial at BidX1
