Determining the Actual Needs of Residential Property Buyers

SICA LLC, a research and consulting company, conducted a comprehensive study in 2023, commissioned by Khanguud Properties LLC, to identify the demand for residential real estate among households in Ulaanbaatar, as well as the behavioral patterns and key factors influencing their purchasing decisions.

This study aimed to identify the actual demand, consumer needs, preferences, and future trends in the residential real estate market, including apartments, detached houses, and townhouses. The research provided valuable insights that enable organizations operating in the real estate sector to optimize their product development, sales, and marketing strategies based on a deeper understanding of market demand and consumer behavior.

Contents

1. What is a Residential Real Estate Demand and Consumer Behavior Study?
2. Research Objective
3. Key Research Objectives
4. Research Scope
5. Research Methodologies
6. Key Research Findings
7. Research Significance
8. Conclusion

The primary objective of this study was to identify the purchasing behavior, preferences, requirements, and key factors influencing the decision-making processes of households that are planning to purchase residential real estate, as well as those intending to make a purchase within the next two years.

The study focused on understanding consumers’ actual needs, assessing market demand, and identifying future development trends within the residential real estate sector.

The study was conducted with the following objectives.

Across Ulaanbaatar, the study identified the demand levels, consumer needs, and preferences for various residential property types, including apartments, detached houses, and townhouses.

The study examined the following factors among households:

• Planned timeframe for purchasing a residential property
• Frequency of residential property replacement or upgrade
• Preferred payment terms and financing arrangements
• Financial capacity and affordability
• Price expectations and acceptable price ranges

Identifying Factors Influencing Residential Property Selection

Identifying Factors Influencing Residential Property Selection

The study evaluated the importance that homebuyers place on the following factors when selecting a residential property:

• Location
• Property size
• Layout and room configuration
• Living environment and neighborhood conditions
• Social infrastructure
• Green spaces and landscaping

Assessing Perceptions of the Real Estate Brokerage Industry

The study examined consumers’ experiences, perceptions, and attitudes toward the services provided by real estate brokerage agencies.

Identifying Key Considerations for Construction Companies

The research identified critical issues that construction companies and real estate developers should consider in project planning, product development, and sales operations.

Research Scope

The study was conducted across all districts of Ulaanbaatar.

Target Respondents

• Households interested in purchasing residential real estate
• Households planning to purchase residential property within the next two years

Research Sample

Quantitative Survey

A total of 550 households participated in the survey.

Qualitative Research

A total of 16 households participated in in-depth interviews. These households had purchased an apartment, detached house, or townhouse within the previous 12 months.

This approach enabled a deeper understanding of the actual motivations behind purchases, consumers’ experiences, and their decision-making processes.

Research Methodology

The study employed a Mixed Methods approach, combining both quantitative and qualitative research techniques.

Quantitative Research

The survey measured key indicators such as:

• Housing demand and needs
• Purchase intentions
• Financial capability
• Housing preferences

Qualitative Research

In-depth interviews were conducted with households that had recently purchased residential property to better understand:

• Reasons for purchase
• Property selection process
• Challenges encountered during the purchase journey
• Actual user experiences after moving in

Comparative Analysis

The study compared demand patterns and consumer preferences across the three main residential property categories:

• Apartments
• Detached houses
• Townhouses

Key Research Findings

The study identified the actual market conditions, consumer behavior patterns, and future trends within Ulaanbaatar’s residential real estate market.

Key findings revealed that:

• Housing demand is directly correlated with household income.
• Family composition significantly influences housing preferences.
• Current living conditions play a critical role in purchase decisions.
• There is a strong desire among consumers to improve their living environment.

The study also found that the following factors have a significant impact on purchase decisions:

• Involvement of family members in the decision-making process
• Competence and professionalism of sales representatives
• Accessibility and availability of information
• Reputation of the developer or construction company

Which Factors Do Consumers Value Most?

Survey participants identified the following as the most important considerations when purchasing residential property:

• Location
• Construction quality
• Space planning and layout
• Number of rooms
• Green spaces
• Children's playgrounds
• Parking availability
• Heated garages
• Security and safety
• Landscaping and neighborhood amenities

These findings indicate the key priorities that should be considered when designing new residential projects and developing product concepts.

Consumer Attitudes Toward Payment and Financing Options

The research found a growing preference for flexible financing solutions among homebuyers.

In particular, demand is increasing for:

• Mortgage loans
• Installment financing schemes
• Rent-to-own programs

These findings provide real estate companies with opportunities to align their sales strategies and financial products more closely with market demand.

Significance of the Study

The findings of this study provide valuable insights for:

• Construction companies
• Real estate developers
• Sales organizations
• Real estate brokerage firms

The research serves as an important foundation for improving product development, marketing strategies, sales performance, and customer relationship management.

Furthermore, it offers evidence-based insights to support decision-making in urban development, housing planning, and the creation of consumer-centric residential products.

Conclusion

The Residential Real Estate Demand and Consumer Purchasing Behavior Study is a strategically significant research project that provides a comprehensive understanding of the needs, preferences, and decision-making characteristics of households in Ulaanbaatar regarding residential property purchases.

The findings offer a reliable foundation for identifying actual market demand, developing consumer-centric housing products, and aligning sales and financing solutions with market needs. By delivering in-depth insights into consumer behavior, housing preferences, affordability, and purchasing intentions, the study enables real estate developers, construction companies, sales organizations, and brokerage firms to make informed, data-driven business decisions.

Furthermore, the research contributes valuable evidence for enhancing product development, marketing strategies, customer engagement, urban planning, and housing development initiatives. As such, it serves as an important reference for stakeholders seeking to improve competitiveness and create residential solutions that better meet the evolving expectations of homebuyers.