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10-06-12, 00:28
http://www.straitstimes.com/Money/Story/STIStory_808871.html
Agents look beyond selling homes
More turning to commercial, industrial properties as the residential sector cools
Published on Jun 9, 2012
By Amanda Tan
INCREASING numbers of property agents are venturing into commercial and industrial property in the wake of a slump in the residential market.
But adding another string to their bow is not an easy move, and could involve taking courses - some pricey - and learning about a different sector.
Mr Roy Chong, head of business space at PropNex, said that around 40 per cent of the firm's 4,000 or so agents have sought out the commercial and industrial sectors this year.
Similarly, OrangeTee managing director Steven Tan estimated that about 15 per cent of the firm's agents have done the same.
The firm has nearly 2,500 agents, focusing mostly on the residential market.
To meet the spike in interest, the company set up a group on Facebook three months ago so that agents new to the commercial and industrial sectors can share information and listings.
Consultants and experienced agents from OrangeTee also conduct courses on these topics at least twice a month, up from one previously.
'These sectors are alternative sources of income for them,' Mr Tan said. 'We foresee there will be more activity in the commercial and industrial sectors, so it makes sense to prepare our agents to be more versatile.'
Training providers such as the Real Centre Network have also seen more agents who focused on residential property taking up courses centred on the commercial sector.
Executive director Eunice Lim said agents are choosing to learn more about the topic, even though they have other options.
This class is among a range of courses that property agents have to complete each year as part of their Continuing Professional Development (CPD) hours.
The CPD, introduced by the Council for Estate Agencies to raise industry standards, requires agents who want to renew their licences to fulfil six hours of training a year.
It consists of core and non-core courses conducted at various training centres.
PropNex's Mr Chong, who conducts a course on commercial property at the Life Mastery Academy (LMA), also noticed a similar trend among property agents wanting to learn more.
Experts say that interest in these alternative sectors has been ignited mainly by the slowdown in the residential sector caused by cooling measures, such as the additional buyer's stamp duty, which have deterred many foreign buyers and investors from going into the residential market.
Prices of industrial properties rose by 7.3 per cent in the first quarter of the year, while that of residential properties dipped by 0.1 per cent.
But commercial and industrial property is not an area that property agents can dive into unprepared, OrangeTee's Mr Tan noted.
'The agent needs to understand the customer's business direction before he can give appropriate advice,' he said.
And courses do not come cheap, costing anything from $50 for a three-hour session to more than $2,000 for a five-day one.
Property agent Stan Wong, 32, said it is a worthwhile investment nonetheless.
He forked out nearly $2,000 for a course at the LMA earlier this year after the private residential market - his speciality - hit the skids.
'I've never done commercial units before so I needed to learn. I see it as upgrading myself... you never know where it will take you,' he said.
While capitalising on alternative sectors may be wise, PropNex's Mr Chong cautioned against abandoning the residential sector completely.
'Although there is a slowdown... it does not mean there is no more activity in the market. If they give it up (and return at a later stage), it will take them a few months to get the momentum back,' he said.
'The residential market will always be the main stream of income for most real estate agents,' he added.
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Agents look beyond selling homes
More turning to commercial, industrial properties as the residential sector cools
Published on Jun 9, 2012
By Amanda Tan
INCREASING numbers of property agents are venturing into commercial and industrial property in the wake of a slump in the residential market.
But adding another string to their bow is not an easy move, and could involve taking courses - some pricey - and learning about a different sector.
Mr Roy Chong, head of business space at PropNex, said that around 40 per cent of the firm's 4,000 or so agents have sought out the commercial and industrial sectors this year.
Similarly, OrangeTee managing director Steven Tan estimated that about 15 per cent of the firm's agents have done the same.
The firm has nearly 2,500 agents, focusing mostly on the residential market.
To meet the spike in interest, the company set up a group on Facebook three months ago so that agents new to the commercial and industrial sectors can share information and listings.
Consultants and experienced agents from OrangeTee also conduct courses on these topics at least twice a month, up from one previously.
'These sectors are alternative sources of income for them,' Mr Tan said. 'We foresee there will be more activity in the commercial and industrial sectors, so it makes sense to prepare our agents to be more versatile.'
Training providers such as the Real Centre Network have also seen more agents who focused on residential property taking up courses centred on the commercial sector.
Executive director Eunice Lim said agents are choosing to learn more about the topic, even though they have other options.
This class is among a range of courses that property agents have to complete each year as part of their Continuing Professional Development (CPD) hours.
The CPD, introduced by the Council for Estate Agencies to raise industry standards, requires agents who want to renew their licences to fulfil six hours of training a year.
It consists of core and non-core courses conducted at various training centres.
PropNex's Mr Chong, who conducts a course on commercial property at the Life Mastery Academy (LMA), also noticed a similar trend among property agents wanting to learn more.
Experts say that interest in these alternative sectors has been ignited mainly by the slowdown in the residential sector caused by cooling measures, such as the additional buyer's stamp duty, which have deterred many foreign buyers and investors from going into the residential market.
Prices of industrial properties rose by 7.3 per cent in the first quarter of the year, while that of residential properties dipped by 0.1 per cent.
But commercial and industrial property is not an area that property agents can dive into unprepared, OrangeTee's Mr Tan noted.
'The agent needs to understand the customer's business direction before he can give appropriate advice,' he said.
And courses do not come cheap, costing anything from $50 for a three-hour session to more than $2,000 for a five-day one.
Property agent Stan Wong, 32, said it is a worthwhile investment nonetheless.
He forked out nearly $2,000 for a course at the LMA earlier this year after the private residential market - his speciality - hit the skids.
'I've never done commercial units before so I needed to learn. I see it as upgrading myself... you never know where it will take you,' he said.
While capitalising on alternative sectors may be wise, PropNex's Mr Chong cautioned against abandoning the residential sector completely.
'Although there is a slowdown... it does not mean there is no more activity in the market. If they give it up (and return at a later stage), it will take them a few months to get the momentum back,' he said.
'The residential market will always be the main stream of income for most real estate agents,' he added.
[email protected]