24th Pacific Rim Real Estate Society Conference
AUCKLAND, NEW ZEALAND, JANUARY 21-24 2018
Examining developers’ lifestyle housing ideas through web advertisements Hasniyati Hamzah* and Yasmin Mohd Adnan *Centre for Sustainable Planning and Real Estate Research (SUPRE), University of Malaya, Malaysia 1
Presentation Outline Introduction (problem statement and research aim) Literature review Methodology Results and Discussion Conclusion
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Intro
Lit review
Methodology
Results
Conclusion
• Standard definition =Expected lifestyle=Buyers’ expectations. • However • The actual lifestyle housing products are developed based on developers’ “perceived mainstream needs and stereotypical ideas” (Kriese & Scholz, 2012, p.288)
Standard definitions
Is there a gap?
Perceived ideas
1. What are the most common lifestyle housing typology in Malaysia? 2. How are the lifestyle housing typologies being marketed to house buyers? 3. To what extent do the facilities and features offered correspond with the lifestyle housing typology? 3
Intro
Lit review
Methodology
Results
Conclusion
Housing, innovation and lifestyle • Economic liberalisation and globalisation lead to increased competition among housing developers, ultimately driving innovations (Ball, 2003; Barlow, 1999; Coiacetto, 2001). • In Malaysia’s case • the local housing market being increasingly open to foreign competitors. • increased standards of living and lifestyle requirements of local house buyers (Sarip & Lee, 2015) • The theory of conspicuous consumption of the middle class, known as “new consumerism”, whereby the middle class would pay more for quality and product differentiation as a reflection of their individual lifestyles (Kharas,2010).
Intro
Lit review
Methodology
Results
Conclusion
Lifestyle housing • The concept of lifestyle is a composite of motivations, needs, and wants of individuals (Lazer, 1963). • In marketing, lifestyle research has long been developed to address the deficiency of traditional psychographics (psychology/demographics) research in examining consumer behaviours and preferences (Beamish et al., 2001; Vynke, 2002).
Source: Beamish et al (2001) 5
Intro
Lit review
Methodology
Results
Conclusion
TABLE 1: STANDARD DEFINITIONS OF LIFESTYLE HOUSING TYPOLOGIES Typology GACOs
Main attribute Protection and security against crime
Description A gated and guarded residential community, either in high-rise or landed properties. Gated Community properties are often on strata title basis (including landed strata) and are only allowed in limited locations in the urban area.
Clubhouse Living
Luxury living with social activity facilities
Green and Landscaped Residence
Environmentallyfriendly
LOHAS
Sustainable socially-sound
and
A development that incorporates clubhouse facilities which emphasized on the exclusivity and symbolization of the upper class, wealth and luxury living. Facilities normally include recreational and sporting facilities depending on the targeted market segment. A development designed with green spaces, better air quality and better access to environmentally-friendly transportation system. Embraces the natural environment and Mother Nature to create a living environment that incorporates and enhances the environmental qualities of the community. A concept that focuses on a balanced lifestyle in terms of health, the environment, social justice, personal development and sustainable living. Comprises contemporary and eco-friendly design and an environmentally-friendly neighbourhood.
Examples of expected features 24-hour patrol services, guardhouses with sentry guards on the alert, boundary fencing, gates or high fences at the entrance of the area with strict rules and stringent regulations for entry and exit systems, CCTV system, intercom system, etc. Clubhouse with swimming pool, gymnasium, sauna and jacuzzi, badminton, basketball, tennis or squash courts, yoga room or patio, barbeque corner, café or bar lounge, function hall, celebrity kitchen and dining for entertaining, karaoke room, library, children’s playground. Energy-efficient buildings, lush landscaping, greeneries, bodies of water including natural or artificial lakes and waterways, structures and fences, gardens, waterfront features.
Energy-efficient windows, rain harvesting system, solar hot water system, low VOC (‘volatile organic compounds’) paint, lowflow toilet (flush), security features, social meeting places, health facilities such as games court, jogging track, sauna, etc..
Source: Adapted from Sarip & Lee (2015)
Intro
Lit review
Methodology
Results
Conclusion
Marketing and advertising of lifestyle housing • Marketing is the meeting point between producers and consumers, whereby goods and services created by producers are communicated and delivered to consumers (Stone & Desmond, 2007). • In lifestyle housing, advertising informs and attracts particular market segments which can afford to consume specific lifestyle housing products purported to signify self and collective identity (Perkins et al., 2008). • The study of advertisements is common in real estate. • Racial differences in housing advertisement practices (Galster et al., 1987; Williams et al., 1995), place meaning (Perkins et al., 2008), the lifestyle ideas of housing developers and investors (Kriese & Scholz, 2012) and transformation of values in new urban developments (Lawson, 2013). • Marketing can persuade house buyers to accept the modified lifestyles as offered by housing developers. • Housing advertisements provide a source of information of developers’ lifestyle ideas and thus were selected as the main data for this study.
Intro
Lit review
Methodology
Results
Conclusion
• Kriese & Scholz (2012) • ultimately developers interpret these preferences into lifestyle housing products. • advertisements embody housing developers’ lifestyle ideas that have been shaped by market studies and constraining factors. House buyers’ Housing preferences
Perception Interpretation Reconciliation
Developers’ Production of lifestyle housing
Marketing & Advertising
• Kriese & Scholz (2012) looked at the “framing and construction” of lifestyles from developers’ perspective by undertaking a content analysis of housing advertisements. 8
Intro
Lit review
Methodology
Results
Conclusion
Conceptual framework Lifestyle influences
Lifestyle housing products GACOS
Household type
Developers’ perceived ideas
Social class Housing values
Clubhouse living Green and Landscaped residence LOHAS
Buyers’ expected lifestyle
Developers’ Marketing and Advertisement
Adapted from Beamish et al. (2001) and Kriese & Scholz (2012) 9
Intro
Lit review
Methodology
Results
Conclusion
Research aim: To examine developers’ lifestyle housing ideas through their online marketing materials Research objectives: 1. To examine the lifestyle housing typology of the sample. 2. To examine the marketing language of lifestyle housing. 3. To reveal the facilities and features of each lifestyle housing typology. Research strategy/design • Online desk research. • Case study of the Klang Valley developers. • Quantitative analysis of lifestyle housing samples obtained from top developers. • Leaders in the industry and the so-called trendsetters in lifestyle housing. • Thus, their new housing developments would best serve as an 10 indicator of the lifestyle housing trend in the Klang Valley.
Intro
Lit review
CONTEXT
Methodology
Results
Conclusion
THAILAND Kelantan Perlis
Kedah
South China Sea
Terengganu
BRUNEI
Labuan
Sabah
Pulau Perak Pinang Pahang Selangor Kuala Negeri Lumpur Putrajaya Sembilan Johor Melaka
Sarawak SINGAPORE INDONESIA
• More urbanised part of Malaysia. • Covers 4 states. • Median monthly household income, 2016 (Malaysia Statistics Department, 2017) : -Malaysia RM5,228 -FT Kuala Lumpur RM9,073 -FT Putrajaya RM8,275 -Selangor RM7,225 • Historically, this area has been the focus of major housing developers due to its economic level and characteristics of the major developers (Shakir, 2008)
Intro
Lit review
Methodology
Results
Conclusion
1. Determine Top 5 Developers (The Edge Malaysia’s Top Property Developers’ Awards 2015). 2. Select 50 lifestyle housing developments. 3. Content analysis of typology. 4. Content analysis and Coding of marketing keywords. 5. Cross-tabulation of typology vs keywords. 6. Cross-tabulation of typology vs facilities and features. Developer Sunway IJM Land Berhad Sime Darby Property SP Setia Mah Sing Group Berhad Total
No. of development 10 10 10 8 12 50
Intro
Lit review
Methodology
Results
Conclusion
Research Question
What are the most common lifestyle housing typology of the sample?
How are the lifestyle housing typologies being marketed to house buyers?
To what extent do the facilities and features offered correspond with the lifestyle housing typology?
Research Objective
To examine the lifestyle housing typology of the sample.
To examine the marketing language of lifestyle housing.
To reveal the facilities and features of each lifestyle housing typology.
Research Method
Heuristic assessment of lifestyle housing typology by matching attributes to Table 1.
Cross-tabulating lifestyle housing typology against keywords in Table 2.
Cross-tabulating lifestyle housing typology against facilities and features as advertised.
Output
Frequency of lifestyle housing typology of the sample.
Frequency and % of lifestyle housing typology against keywords.
Frequency and % of lifestyle housing typology against facilities and features.14
Intro
Lit review
Methodology
Results
Conclusion
Table 2: Marketing keywords pertaining to lifestyle housing and their variations Keyword: Beautiful Variations: Picturesque, Panoramic Keyword: Green Variations: Lush, Landscape, Environment
Keyword: Community Keyword: Exciting Variations: Urban, Variations: Vibrant, Harmony Landmark, Iconic
Keyword: Security Variations: Secure, Peace of mind
Keyword: Exclusive Variations: Privacy, Quality, Impressive, Premier, Higher level, Luxury
Keyword: Health Variations: Healthy, Comfort
Keyword: Investment Variations: Location, Hub, Access, Transportation, Conveniences Keyword: Sustainable Variations: Sustainability, Sustain, Self-sufficient Source: This study
Intro
Lit review
Methodology
Results
Conclusion
Typologies of sample developments (%) Typology
%
LOHAS
38%
Clubhouse living
26%
Green and landscaped residence
26%
GACOs
10%
Keywords used in samples ( f ) Typology
f
Security
29
Green
28
Community
24
Health
23
Exclusive
23
Exciting
20
Beautiful
19
Investment
14
Sustainable
8
16
Intro
Lit review
Methodology
Results
Conclusion
Cross-tabulation: Lifestyle Housing Typology vs Keywords Used Lifestyle housing typologies GACOs
f 1 4 4 4 1 2 2 3 0
% 4.76 19.05 19.05 19.05 4.76 9.52 9.52 14.29 0.00
f 8 8 8 7 7 2 7 5 1
% 15.09 15.09 15.09 13.21 13.21 3.77 13.21 9.43 1.89
Green and landscaped residence f % 7 10.61 5 7.58 5 7.58 7 10.61 13 19.70 10 15.15 3 4.55 12 18.18 4 6.06
21
9.55
53
24.09
66
Keywords Beautiful Community Exciting Exclusive Green Health Investment Security Sustainable Column Totals
Clubhouse living
30.00
LOHAS
Row Totals
f 7 13 9 9 9 11 6 13 3
% 8.75 16.25 11.25 11.25 11.25 13.75 7.50 16.25 3.75
80
36.36 220 100.00
f 23 30 26 27 30 25 18 33 8
% 10.45 13.64 11.82 12.27 13.64 11.36 8.18 15.00 3.64
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Intro
Lit review
Methodology
Results
Conclusion
Cross-tabulation: Lifestyle Housing Typology vs Facilities & Features Advertised facilities and features
GACOs
f 1 BBQ Area 0 Broad-band 2 Children’s play-ground 1 Club-house Facilities 1 Communal retail facilities 1 Games Court Jogging track & running trails 1 1 Green features 2 Gym and yoga room 1 Landscape Safety features 3 Sauna, Steam room & Jacuzzi 2 Swimming Pools 3 1 Multi-purpose hall 1 Function rooms 1 Entertainment area 1 Daycare centre 23 Column Totals
% 4.35 0.00 8.70 4.35 4.35 4.35 4.35 4.35 8.70 4.35 13.04 8.70 13.04 4.35 4.35 4.35 4.35 7.32
Lifestyle housing typologies Clubhouse Green and LOHAS living landscaped residence f % f % f % 4 4.04 3 3.57 3 2.78 2 2.02 1 1.19 2 1.85 4 4.04 6 7.14 9 8.33 7 7.07 3 3.57 4 3.70 3 3.03 5 5.95 8 7.41 8 8.08 8 9.52 6 5.56 2 2.02 8 9.52 4 3.70 6 6.06 13 15.48 11 10.19 5 5.95 11 11.11 11 10.19 9 9.09 10 11.90 11 10.19 7 7.07 7 8.33 10 9.26 6 7.14 11 11.11 11 10.19 7 8.33 12 12.12 12 11.11 7 7.07 2 2.38 3 2.78 5 5.05 0 0.00 1 0.93 1 1.01 0 0.00 2 1.85 0 0.00 0 0.00 0 0.00 99 31.53 84 26.75 108 34.39
Row Totals f 11 5 21 15 17 23 15 31 29 31 27 30 34 13 7 4 1 314
% 3.50 1.59 6.69 4.78 5.41 7.32 4.78 9.87 9.24 9.87 8.60 9.55 10.83 4.14 2.23 1.27 0.32 18 100.00
Intro
Lit review
Methodology
Results
Conclusion
Discussion • Developers’ ideas of the lifestyles of purchasers will likely change alongside perceived changes in societal conditions. • LOHAS as the main lifestyle housing typology, GACOs appeared to lag behind. • “Security”, “Community” and “Green” the most frequently used keywords in the advertisements. • Swimming pools, Sauna, steam room & Jacuzzi, Gym & yoga room indicated social and health facilities that promised a high degree of exclusiveness. • Likely that developers now catering for purchasers seeking to satiate higher needs of esteem and selfactualisation. 19
Intro
Lit review
Methodology
Results
Conclusion
• In countries that experience rapid socio-economic changes such as Malaysia, property developers compete and innovate to develop housing products that attract more discerning buyers. • Lifestyle housing developments have been on the rising trend. • In sum, developers’ lifestyle housing ideas as inferred from the advertisements of sample developments seemed to correspond with the expected lifestyle housing attributes. • In other words, developers’ perceived ideas= standard definitions. • Future studies to examine house buyers’ satisfaction levels. 20
Thank you Q&A
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