Tridel ranks highest in customer satisfaction among condo builders in the Greater Toronto Area
From the Condo Guide Magazine
New condo buyers indicate room for improvement in how some builders handle this important purchase
Tridel ranks highest in satisfying buyers of newly built condos in the Greater Toronto Area, according to the J.D. Power and Associates 2006 Canadian New Condo Builder Customer Satisfaction Study released recently.
The inaugural study measures customer satisfaction of condo buyers throughout the purchase and early ownership experience. Owners are asked to evaluate their builder in nine factors: customer service, home/building readiness, building features, home quality, price/value, sales staff, physical design elements, design centre and location. Tridel leads the industry in eight of the nine factors.
Tridel is followed in the rankings by Daniels and Monarch Corporation, respectively. All three builders perform well above industry average in the factors that are most important to new condo buyers: customer service and home/building readiness.
“Toronto is already one of the largest condo markets in North America, with significant growth predicted in the industry over the next few years,” says Darren Slind, Senior Director of the new-home builder and performance improvement practices at the Canadian office of J.D. Power and Associates. “Given the degree of competition in the Toronto new condo market, getting on the consideration list of potential buyers is of paramount concern for all builders.”
The study finds there is a clear link between customer satisfaction and the number of recommendations that builders receive from its customers. Condo builders who receive the highest satisfaction ratings enjoy more than three times the number of recommendations from their customers compared to the average builder.
Although 42% of new condo buyers in the GTA indicate they are either “satisfied” or “very satisfied” (rating the builder a seven or higher on a 10-point scale), nearly one in three buyers (31%) indicate their expectations are not being met, rating their builder a four or lower. The market average for condo builders in the GTA is 588 on a 1,000-point scale, compared to 664 for builders of traditional, low-rise homes.
“The purchase of a new home is a significant financial and emotional decision for most consumers,” says Slind. “It is clear that GTA new condo buyers are sending a message that there is considerable room for improvement in how some builders handle this most important purchase. However, if the satisfaction gains demonstrated by low-rise new home builders in the GTA is any indication – a 52 index point improvement in 2006 compared to the inaugural study in 2005 – then we can anticipate condo satisfaction levels to also improve in the years to come, assuming condo builders make similar efforts to respond to customer expectations.”
The study also finds that buyers who purchased their condo during the pre-construction phase are significantly less satisfied with their builder than those who bought a completed unit or during the construction phase. Much of this difference relates to how well a builder fares in living up to promises made to buyers before construction begins in terms of when the unit will be ready for occupancy as well as when the building’s common amenities, such as the lobby, pool, or fitness centre will be completed.
“Satisfying customers has a great deal to do with setting realistic expectations and delivering on promises, which is often a challenge during the pre-construction phase,” says Slind.
“However, we find that the leading builders take a very proactive communications approach with their purchasers to keep them informed of construction status and to set clear expectations regarding what will happen next. Given that the entire process between purchase and occupancy can often exceed two years, this level of customer engagement throughout the process goes a long way to ensuring a more satisfied condo owner.”
The 2006 Canadian New Condo Builder Customer Satisfaction Study is based on the responses of 1,428 buyers within the Greater Toronto Area whose condos registered between October 2004 and December 2005.
The Condo Guide Magazine is an excellent source of real estate information for those looking for information on new condos in Ontario, Canada. We offer the most up-to-date information on new condos across the greater Toronto area.
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