The consumer ombudsman and regional administrative agencies have surveyed the online marketing of new apartments by construction and real estate agencies in order to find out how well the companies have followed the recommendation of the consumer ombudsman regarding the marketing of new apartments. The findings of the regional administrative agencies showed that there is room for improvement in the information provided about new apartments and the way they are presented on the website.
In the spring of 2023, the regional administrative agencies collected information from the websites of the new properties regarding prices, housing association loans, land management and optional rental plots, compensation and other marketing, such as marketing with benefits. About half of the reviewed websites were real estate agency websites and half of construction websites.
The data collection was based on the recommendation of the consumer ombudsman regarding the online marketing of new apartments, which instructs marketers on what legal information must be provided in the marketing of new apartments in addition to the information required in the housing marketing regulation.
The findings of the regional administrative agencies revealed that there were widespread deficiencies in the reporting of information in the advertising of construction and real estate agencies. Information regarding the price and consideration of new apartments was left unreported or the information was scattered in its own files or behind links. On some websites it was announced that the information of the apartment being marketed is only given on a separate request.
New apartments were also marketed with various benefits, for example, the buyer was offered a maintenance or capital compensation free period. In addition, an electric bike, parking right or shared car were offered as benefits. According to the consumer representative, the consumer can be offered such various additional benefits, but marketing should primarily focus the consumer's attention on his payment obligations and not try to obscure them with benefits.
The regional administrative agencies will implement a control campaign in their region during the beginning of 2024, the content of which is the adequacy and clarity of the information provided in the online marketing of new apartments by real estate agencies.
It is also appropriate for construction companies to ensure that the recommendation of the consumer representative is followed in the online marketing of new properties. The recommendation of the consumer representative applies to all online marketing of new properties, i.e. in addition to own websites, for example advertising on social media. If the services of a separate real estate agency are used for marketing, the real estate agency must take care of the implementation of the recommendation.
The marketing portals (Etuovi.com and Oikotie.fi) have recently completed the technical changes to their own systems required by the recommendation.
Recommendation regarding online marketing of new apartments
In June 2021, the Consumer Ombudsman (KKV) prepared a recommendation on how the online marketing of new apartments should present information about the housing association loan of the apartment for sale, the management of the building's land and the optional rental plot. The recommendation was updated in June 2022. The recommendation deals with information that should be provided in the online marketing of new apartments in addition to the housing information regulation.
The recommendation concerns the online marketing of new apartments to consumers who are subject to apartment-specific housing association loans and whose marketer is a developer, construction company, real estate agency or other business operator. In the recommendation, a new apartment is defined as an unused apartment located in a new or renovated building in a manner comparable to new construction.
According to the recommendation, when presenting the information, it is essential that the consumer receives a notice about the apartment when viewing the apartment's key financial information easily as a single, clear entity. The financial whole of buying an apartment must be easy to understand so that, for example, comparing different objects is effortless for the consumer.
Key financial information related to the housing association loan and the optional rental plot must be presented in the same place and in the same way as other financial information, such as apartment price information. They must not be sprinkled in different places or placed in a hard-to-see place, for example near additional information.
The recommendation can be found here:
https://www.kkv.fi/kuluttaja-asiat/tietoa-ja-ohjeita-yrityksille/uudisasuntojen-verkkomarkkinointi/