{"id":68628,"date":"2017-10-10T12:00:11","date_gmt":"2017-10-10T05:00:11","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-agencies-merge-tap-into-tech-as-real-estate-market-goes-increasingly-online\/"},"modified":"2017-10-10T12:05:59","modified_gmt":"2017-10-10T05:05:59","slug":"property-agencies-merge-tap-into-tech-as-real-estate-market-goes-increasingly-online","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-agencies-merge-tap-into-tech-as-real-estate-market-goes-increasingly-online\/","title":{"rendered":"Property agencies merge, tap into tech as real estate market goes increasingly online"},"content":{"rendered":"


\nLower commissions, developers being less dependent on agents, and digital disruption are posing threats to Singapore agencies, says industry veteran.
\nThe property agency industry has been abuzz with recent mergers and how technology is disrupting the way agents do business.
\nIt started in June when PropNex Realty announced a merger with Dennis Wee Group (DWG) to form the largest agency in Singapore with close to 7,000 agents.
\nTwo more followed in August \u2013 OrangeTee and Edmund Tie and SLP and Scotia.
\nThe newly formed OrangeTee & Tie will comprise more than 4,000 agents, making it the third largest agency and pushing it ahead of Huttons Asia with over 3,000 agents.
\nSLP Scotia will have a combined strength of 800 agents and will receive a cash injection of $3 million to grow the business.
\nFrancis Tan, executive director of SLP Scotia said: \u201cWe are seeing signs that the real estate market is bottoming out and this is the best time for consolidation and expansion.
\n\u201cWe intend to grow the numbers, but we do not intend to grow too big or too fast as the well-being of our agents is the priority.\u201d
\nIt\u2019s tough being small
\nPropNex CEO Mohamed Ismail believes it will be tougher for smaller agencies that do not enjoy economies of scale to sustain their operations and remain profitable.\u00a0
\nHe cited rising competition, low profit margins, rent and staff costs as some of the factors affecting smaller operators looking to run their businesses effectively.
\nEugene Lim, key executive officer at ERA Realty, shares a similar view. \u201cThere are only 30,000 salespersons in Singapore, and now it is dominated by the big four agencies. We may see more consolidation as the mid-sized agencies will find it hard to survive going forward,\u201d he said.
\nERA previously had the most number of agents in Singapore at over 6,200, but is now in second place following the PropNex-DWG merger.
\nBut Lim is not worried as he feels a good sweet spot to reap benefits is around 5,000 to 6,000 agents.
\nOrangeTee\u2019s managing director Steven Tan, on the other hand, believes there is still room for other agencies to flourish.
\nHe reckons that online agencies such as UK-based Purplebricks, with its flat-fee model, could enter the market in future.
\n\u201cLooking at how these companies have done overseas, they may grow and become prominent players in the new ecosystem,\u201d he said.
\nHe added that smaller agencies tend to focus on niche markets and provide a more personalised service.
\nMeanwhile, SLP Scotia\u2019s Tan is focused on rightsizing the company as he believes a bigger agency isn\u2019t necessarily better. He cited lower commissions, developers being less dependent on agents, and the pressure of disruption as threats to the current agency model.
\n\u201cThe existing model of real estate work will not continue in its current guise for long, and we intend to be ahead of the curve because we are relatively nimble in terms of size, a perfect example of rightsizing,\u201d he said.
\nMerger or takeover?
\nInterestingly, Lim pointed out that the mergers so far have only involved a transfer of salespersons from one company to another. \u201cWe have not seen senior management cross over together with their salespersons. Though the term merger has been used, it is in essence not a merger. What we have seen looks more like a takeover.
\n\u201cIn short, the salespersons who are used to their existing management leadership and company culture have to change to blend into the new company. This is very disruptive and is never easy as the new environment and culture is \u2018forced\u2019 upon them,\u201d he said.\u00a0
\nFor now, he sees many of these agents crossing over for business continuity, but over the longer term he believes some agents may choose to join other agencies that they feel are more favourable for their career development.
\nIsmail admitted that there are challenges involved in any merger, especially when companies try to align themselves with similar values and cultures.
\n\u201cIt is up to the management to bring forward necessary initiatives to integrate the different parties involved,\u201d he said. \u201cThe quicker this integration is carried out, the more favourable the outcome would be \u2013 in terms of the agency\u2019s performance and output.\u201d
\nOrangeTee\u2019s Tan believes it comes down to the culture of both companies. \u201cOrangeTee and Edmund Tie have a similar culture as both are not just providing agency services. Both have other departments providing consultancy and professional services. Furthermore, both are homegrown companies with similar core values,\u201d he said.
\nLooking ahead, OrangeTee, PropNex and ERA are open to merging with other companies.
\nDigital disruption
\nAt the same time, a few agencies are starting to pour money and investments into technology to remain relevant amidst the digital disruption.
\nLast year, OrangeTee launched its Property Agents Review platform, the first of its kind in Singapore, where customers can leave reviews of their agents after a successful transaction.
\n\u201cWe see the urgency to transform our business in view of the rapid advancement of technology which has disrupted many traditional industries,\u201d said Tan.
\nHowever, other agencies say this technology isn\u2019t new. \u201cWhat OrangeTee has, most of the larger agencies also have, but they are used more for internal consumption,\u201d said Lim.
\nPropNex, for instance, has developed its own Real Estate Management System (REMS), a one-stop platform that covers all aspects from agents\u2019 daily transactions, millions of commission, taxation, trainings, legal cases, marketing and branding.
\nIn addition, it has developed various mobile apps like the PropNex Virtual Office app, PropNex Co Broker app and PropNex Property Net app to increase productivity and raise consumer awareness.
\nSLP Scotia has also invested heavily in next generation technological platforms, including the move into virtual spaces.
\n\u201cThe company\u2019s current headquarters has been transformed along the lines of hot desking and co-share work spaces,\u201d said SLP Scotia\u2019s Tan.
\nSeparately, ePropertyTrack, PropertyGuru\u2019s real-time project sales and marketing technology platform, which allows buyers to book units directly with developers and submit down payments online, has added a function for real-time routing and tracking leads to agents.
\n\u201cThis gives all parties in the buying process full visibility and control at maximum process efficiency,\u201d said Lewis Ng, chief business officer at PropertyGuru.
\nCurrently, more than 90 percent of all new projects launched and marketed in Singapore use ePropertyTrack.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Property agencies merge, tap into tech as real estate market goes increasingly online<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Lower commissions, developers being less dependent on agents, and digital disruption are posing threats to...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-68628","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-hQU","jetpack-related-posts":[{"id":64786,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/orangetee-and-edmund-tie-amp-company-merge-to-form-singapores-third-largest-agency\/","url_meta":{"origin":68628,"position":0},"title":"OrangeTee and Edmund Tie &amp; Company merge to form Singapore's third largest agency","date":"August 28, 2017","format":false,"excerpt":"\r OrangeTee & Tie will comprise more than 4,000 agents, making it the third largest property agency in Singapore. 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Global Alliance Property (GAP), which operates under the Century 21 franchise, has signed a strategic collaboration with PropNex Realty, whereby GAP\u2019s property agents will be transferred to the latter. With the transfer of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":102738,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/record-of-agents-past-hdb-resale-transactions-now-available-online\/","url_meta":{"origin":68628,"position":5},"title":"Record of agents\u2019 past HDB resale transactions now available online","date":"January 7, 2019","format":false,"excerpt":"\r The data shows the track record of agents and how active they are in transacting HDB flats. 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