New Marketing Strategy to Help Sell Luxury Condos
By: Ismael Rodriguez
The luxury real estate market in Miami has, over the past couple of years, accumulated a stockpile of units that continue to steadily grow, standing at 2,549 as of last year, but developers across South Florida have a new marketing strategy to hopefully engage the buyers and sell-off what has now become a 45-month supply of condos.
The new marketing strategy stretches past your standard website ads and traditional print, intertwining concert-like performances from artists like Alicia Keys and Andrea Bocelli, for example, with an interactive showcase of the condos superior amenities and prices in 30-second video ads between performances.
“Traffic drives sales, so if you can get people out to see the units, they’re more likely to buy,” Mike Pappas, president and CEO of The Keyes Company, told the press. “It’s getting bodies in the seats, so to speak. The same people who would pay $1,000 a seat for a concert are all high net-worth individuals. A concert is a two-fer: I get entertained and I get to see the unit. It’s a very smart effort as traffic has been waning for some time. This is almost like an espresso shot to the market.”
Dan Kodsi, the developer of the 524-unit Paramount Miami Worldcenter, is among those developers taking to the music to promote, hosting a “Jam Session Event” last week that featured Djs, dancing and live performances by singers Jackie Mendez and reggae artist Andrew Tosh.
One of the songs performed at this open-air event in downtown Miami, welcoming 500 invited guests, was “Right Now,” by Mendez, which also happened to be the theme song of a video ad campaign by Paramount titled “Most Amenities in the World,” referring to its 40-plus amenities that include a boxing ring, soccer field, indoor basketball court and a recreational room dubbed the “Jam Room.”
“The trend in advertising is all video oriented,” Kodsi told the press. “People don’t want to read anymore. This campaign is a way for our advertising to catch up with the times.”
Paramount isn’t the only development firm actively using this strategy to promote. Other developers like Gil Dezer, president of Dezer Development, which created Porsche Design Tower, have also invested largely in music as a marketing tool.
Last March, singer Alicia Keys performed at the invitation-only grand opening of the first U.S. Porsche Design Tower, known nationally for its innovative elevators that allow residents to park their cars inside the unit.
“This kind of secret, over-the-top event ups the exclusivity factor,” Dezer told the press. “We had 1,000 people at the party—a who’s who of Miami—and then Alicia Keys steps onto the stage and performs for 20 to 30 minutes. That creates an even bigger buzz.”
Real estate analysts stipulate the use of this marketing tool signals a new approach to reduce the regions already substantial amount of unsold luxury properties. According to a first quarter Elliman Report released last week, that number is 5.6 percent higher than last year’s 42.6-month supply.
“If units were selling at the absorption rate they needed to sell, the developers wouldn’t be spending their money doing concerts,” Mayi de la Vega, founder and CEO of One Sotheby’s International Realty, told the press. “But it’s great that they’re doing this, because we’re always trying find new ways to market these properties and engage clients and brokers and get them excited again. When these things go viral, Miami benefits from it.”