Marketing i Menedžment Innovacij (Dec 2016)
Investigation of the main trends of the primary real estate market in Ukraine and peculiarities of the seller marketing activity
Abstract
The aim of this article. The main objective of this paper is to study the primary real estate market of Ukraine and identify the impact of the results on the formation of individual components of the marketing activity of construction companies and sellers. In this paper it was investigated the dynamics of supply in the primary real estate market of Ukraine during the period between 2000 and 2015, and assessed the dynamics of average prices for residential real estate in the city of Kyiv since the beginning of January 2003 until the end of July 2016. The dynamics in the city of Kyiv reflects prices trends for housing in Ukraine in general. The results of the analysis. On the basis of results obtained by national scientists and our own statistical calculations it was distinguished separate stages in the formation of the primary real estate market and compared trends of the volume of commissioning of housing area and the number of built apartments during the periods of 2003-2007 and 2009-2015. It was also determined factors that influenced the volume of housing supply during mentioned periods and caused some differences in the dynamics of supply of housing area and the number of built apartments. Before the collapse of the market in 2009 the trends of both indices were quite similar. Since 2010 the volume of housing, put into operation, somewhat fluctuated. At the same time there was a gradual increase in the number of built apartments. Dynamics of commissioning during 2003-2007 corresponds to the trend which is described by exponential function, and the trend of this indicator for 2009-2015 is characterized by the logarithmic function, which confirms the faster change of the indices at the beginning of this period and their slowing down in 2011-2013. Dynamics of flats built in both periods is characterized by exponential dependence. Equation parameters that describe the trends of the change in the number of flats built for both periods are quite similar. The first and second derivatives of these functions, that respectively reflect the speed and acceleration of the investigated phenomenon change. Consequently, the supply of built apartments in all investigated periods was increasing almost equally, regardless of different levels and dynamics of the prices. The difference in the trends of the volume of housing commissioning and the number of apartments built in 2009-2015 can be explained by the completion of the construction works and by the post-crisis supply of the apartments in new buildings. The construction of latter was started during the period of 2006-2009, when developers tried to maximize the area of apartments. And during the period of 2014-2015 the trend of these indicators practically flattened out, which was caused by the increasing demand for small apartments This trend is expected to continue in the future due to the significant increase in tariffs for housing and communal services. It was also determined that despite the significant decrease in prices in the secondary housing market in recent years, the demand for primary market constantly grows. The obtained results confirm the cyclical character of the supply in the primary real estate market and have the elements of scientific novelty. Conclusions and directions of further researches. Under conditions of changing consumer needs, due to their different socio-economic and demographic characteristics, and despite the reduction of their income, it was determined in this article that the further use of the concept of differentiated marketing by construction companies is feasible. For consumers with average and lower than the average income, the sellers on the market have to focus on rational infrastructure of the residential complex, relatively low prices and mass communications. Other marketing tools are appropriate for use in case of luxury housing customers: infrastructure with exclusive elements, personal communications, focus on brand value. Further research in this area may be related to the study of influence of the concept of horizontal relationships between consumers on the formation of trust to the construction companies in the housing market.
