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J.D. Power and Associates Reports: Tridel Ranks Highest in Customer Satisfaction among Condominium Builders in the Greater Toronto Area. New Condominium Buyers Indicate Room for Improvement in How Some Builders Handle This Important Purchase
TORONTO: 11 October 2006 — Tridel ranks highest in satisfying buyers of newly built condominiums in the Greater Toronto Area, according to the J.D. Power and Associates 2006 Canadian New Condominium Builder Customer Satisfaction StudySM released today.
The inaugural study measures customer satisfaction of condominium 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, respectively. All three builders perform well above industry average in the factors that are most important to new condominium buyers: customer service and home/building readiness.
“Toronto is already one of the largest condominium markets in North America, with significant growth predicted in the industry over the next few years,†said 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 GTA new condominium market, getting on the consideration list of potential buyers is of paramount concern for all builders.â€
The study finds there is a clear link between customer satisfaction and the number of recommendations that builders receive from their customers. Condominium 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 percent of new-condominium buyers in the GTA indicate they are either “satisfied†or “very satisfied†(rating the builder a 7 or higher on a 10-point scale), nearly one in three buyers (31%) indicate their expectations are not being met, rating their builder a 4 or lower. The market average for condominium 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,†said Slind. “It is clear that GTA new condominium 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 condominium (Page 1 of 2) satisfaction levels to also improve in the years to come, assuming condominium builders make similar efforts to respond to customer expectations.â€
The study also finds that buyers who purchased their condominium 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 center 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,†said 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 condominium owner.â€
The 2006 Canadian New Condominium Builder Customer Satisfaction Study is based on the responses of 1,428 buyers within the Greater Toronto Area whose condominium homes registered between October 2004 and December 2005.
2006 Canadian New Condominium Builder Customer Satisfaction Studay (Based on a 1,000-point scale)
Tridel: 715
Daniels: 684
Monarch: 624
Pemberton: 620
Market Average: 588
Kolter: 585
Concord Adex: 558
Camrost-Felcorp: 511
Davies Smith: 499
Context: 464
Note: Included in the study, but not ranked due to small sample size: Lee Developments, Minto and Shane Baghai
TORONTO: 11 October 2006 — Tridel ranks highest in satisfying buyers of newly built condominiums in the Greater Toronto Area, according to the J.D. Power and Associates 2006 Canadian New Condominium Builder Customer Satisfaction StudySM released today.
The inaugural study measures customer satisfaction of condominium 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, respectively. All three builders perform well above industry average in the factors that are most important to new condominium buyers: customer service and home/building readiness.
“Toronto is already one of the largest condominium markets in North America, with significant growth predicted in the industry over the next few years,†said 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 GTA new condominium market, getting on the consideration list of potential buyers is of paramount concern for all builders.â€
The study finds there is a clear link between customer satisfaction and the number of recommendations that builders receive from their customers. Condominium 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 percent of new-condominium buyers in the GTA indicate they are either “satisfied†or “very satisfied†(rating the builder a 7 or higher on a 10-point scale), nearly one in three buyers (31%) indicate their expectations are not being met, rating their builder a 4 or lower. The market average for condominium 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,†said Slind. “It is clear that GTA new condominium 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 condominium (Page 1 of 2) satisfaction levels to also improve in the years to come, assuming condominium builders make similar efforts to respond to customer expectations.â€
The study also finds that buyers who purchased their condominium 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 center 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,†said 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 condominium owner.â€
The 2006 Canadian New Condominium Builder Customer Satisfaction Study is based on the responses of 1,428 buyers within the Greater Toronto Area whose condominium homes registered between October 2004 and December 2005.
2006 Canadian New Condominium Builder Customer Satisfaction Studay (Based on a 1,000-point scale)
Tridel: 715
Daniels: 684
Monarch: 624
Pemberton: 620
Market Average: 588
Kolter: 585
Concord Adex: 558
Camrost-Felcorp: 511
Davies Smith: 499
Context: 464
Note: Included in the study, but not ranked due to small sample size: Lee Developments, Minto and Shane Baghai