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19-07-13, 18:13
http://www.businesstimes.com.sg/archive/wednesday/premium/top-stories/property-agents-go-hunting-fresh-income-cool-climate-20130717
Published July 17, 2013
Property agents go hunting for fresh income in 'cool' climate
They eye commercial and overseas sales as home sector cools
By Mindy Tan
[SINGAPORE] Even as home buyers and investors feel the chill from the recent rounds of cooling measures, property agents are diversifying their income streams and revving up for when the market turns.
Given that the brunt of the measures have been felt in the residential sector, agents have turned to other areas, including the commercial and industrial sectors, and even overseas projects.
According to Mohamed Ismail, chief executive officer of PropNex Realty, about 10 per cent of the company's salespersons have switched their focus to commercial and industrial properties.
"Our salespersons are spending more time understanding and marketing overseas and commercial properties. However, 80 per cent of their income still comes from the residential segment," he said.
Thomas Lee, executive vice-president, DTZ Property Network, too has noticed more agents channelling their efforts toward marketing commercial and industrial properties.
"The measures and higher Additional Buyers Stamp Duty (ABSD) have resulted in heightened buyers' interest in owning foreign properties. Many agents have tied up with overseas developers to market their properties in Singapore," he added.
Said Donald Yeo, HSR Property Group's head of service and support: "In local showflats, 600 people might walk in, but only 200 are really interested in buying. For overseas projects, when people walk into our exhibition, chances are, they want to buy something."
While it might sound like an easy switch, agencies stress the importance of ensuring that salespersons are equipped with the right training and information so that they are able to help homebuyers make informed decisions.
"We do a lot of feasibility checks, some risk calculations, and make sure the developer follows all the compliance regulations... and we ensure that our agents spend some time learning how to sell overseas projects. Quite a lot of them are putting in time to learn the sales skill set because the way you present your pitch is also different," said Mr Yeo.
Even as salespersons turn their attention to other avenues to generate revenue, they are also becoming more innovative in their marketing techniques, noted DTZ's Mr Lee.
"The need to balance cost against reduced revenue has now become a pressing concern, and agents now need to be more innovative and creative to minimise expenses. Many have resorted to sending mass SMSes to reach out to co-brokers," he said.
Indeed, the spate of cooling measures has caused a reduction in transaction volume, effectively shrinking the pie for real estate professionals. That has, in turn, led to dwindling numbers of new recruits joining the industry, said Mr Lee.
That being said, the number of salespersons who are already established and operating in the industry has remained largely stable.
As at end-January 2011, there were 31,169 registered salespersons. This figure dropped to 30,577 as of January 1, 2012, before rising to 31,040 as at January 1, 2013, according to data provided by the Council for Estate Agents (CEA) .
According to PropNex's Mr Ismail, the firm's sales force stood at 4,350 persons as of January 2013.
"Our numbers just crossed 5,000 and that is a 15 per cent increase in numbers, the highest growth in the industry for the past six months.
"This is is largely due to the $900,000 training subsidy that the company has set aside. Our goal this year is to ensure our salesforce is equipped with the latest technology and knowledge to better serve their clients."
At HSR, a range of courses, including marketing techniques for overseas projects and local projects, and motivational talks are held for agents.
"At HSR, we conduct a lot of classes to reposition our agents when the market is slow. We give them a strategy, and throw in some innovative ideas to help them see the market in a different perspective," said HSR's Mr Yeo.
Beyond preparing its agents, PropNex also reaches out to buyers, with regular seminars held for investors and homebuyers.
"Our survey shows that 70 to 80 per cent of property buyers are not ready to commit until they see a clearer indication of where the market is heading. Thus, since the January 2013 cooling measures, free weekly property seminars are conducted to explain the impact of the cooling measures and analyse market trends of the residential market. In fact, property investment coaching for property investors is gaining popularity because it requires in-depth knowledge for a sound investment decision," said Mr Ismail.
It is in this way that companies and agents are taking stock and biding their time, said HSR's Mr Yeo.
"Since the introduction of the measures, there has been a slowdown in the market," he said. "But trained agents believe the market will rebound. So they are stocking up on their inventory. They are creating more contacts and increasing their database. So when there is a market change, they will be ready."
Published July 17, 2013
Property agents go hunting for fresh income in 'cool' climate
They eye commercial and overseas sales as home sector cools
By Mindy Tan
[SINGAPORE] Even as home buyers and investors feel the chill from the recent rounds of cooling measures, property agents are diversifying their income streams and revving up for when the market turns.
Given that the brunt of the measures have been felt in the residential sector, agents have turned to other areas, including the commercial and industrial sectors, and even overseas projects.
According to Mohamed Ismail, chief executive officer of PropNex Realty, about 10 per cent of the company's salespersons have switched their focus to commercial and industrial properties.
"Our salespersons are spending more time understanding and marketing overseas and commercial properties. However, 80 per cent of their income still comes from the residential segment," he said.
Thomas Lee, executive vice-president, DTZ Property Network, too has noticed more agents channelling their efforts toward marketing commercial and industrial properties.
"The measures and higher Additional Buyers Stamp Duty (ABSD) have resulted in heightened buyers' interest in owning foreign properties. Many agents have tied up with overseas developers to market their properties in Singapore," he added.
Said Donald Yeo, HSR Property Group's head of service and support: "In local showflats, 600 people might walk in, but only 200 are really interested in buying. For overseas projects, when people walk into our exhibition, chances are, they want to buy something."
While it might sound like an easy switch, agencies stress the importance of ensuring that salespersons are equipped with the right training and information so that they are able to help homebuyers make informed decisions.
"We do a lot of feasibility checks, some risk calculations, and make sure the developer follows all the compliance regulations... and we ensure that our agents spend some time learning how to sell overseas projects. Quite a lot of them are putting in time to learn the sales skill set because the way you present your pitch is also different," said Mr Yeo.
Even as salespersons turn their attention to other avenues to generate revenue, they are also becoming more innovative in their marketing techniques, noted DTZ's Mr Lee.
"The need to balance cost against reduced revenue has now become a pressing concern, and agents now need to be more innovative and creative to minimise expenses. Many have resorted to sending mass SMSes to reach out to co-brokers," he said.
Indeed, the spate of cooling measures has caused a reduction in transaction volume, effectively shrinking the pie for real estate professionals. That has, in turn, led to dwindling numbers of new recruits joining the industry, said Mr Lee.
That being said, the number of salespersons who are already established and operating in the industry has remained largely stable.
As at end-January 2011, there were 31,169 registered salespersons. This figure dropped to 30,577 as of January 1, 2012, before rising to 31,040 as at January 1, 2013, according to data provided by the Council for Estate Agents (CEA) .
According to PropNex's Mr Ismail, the firm's sales force stood at 4,350 persons as of January 2013.
"Our numbers just crossed 5,000 and that is a 15 per cent increase in numbers, the highest growth in the industry for the past six months.
"This is is largely due to the $900,000 training subsidy that the company has set aside. Our goal this year is to ensure our salesforce is equipped with the latest technology and knowledge to better serve their clients."
At HSR, a range of courses, including marketing techniques for overseas projects and local projects, and motivational talks are held for agents.
"At HSR, we conduct a lot of classes to reposition our agents when the market is slow. We give them a strategy, and throw in some innovative ideas to help them see the market in a different perspective," said HSR's Mr Yeo.
Beyond preparing its agents, PropNex also reaches out to buyers, with regular seminars held for investors and homebuyers.
"Our survey shows that 70 to 80 per cent of property buyers are not ready to commit until they see a clearer indication of where the market is heading. Thus, since the January 2013 cooling measures, free weekly property seminars are conducted to explain the impact of the cooling measures and analyse market trends of the residential market. In fact, property investment coaching for property investors is gaining popularity because it requires in-depth knowledge for a sound investment decision," said Mr Ismail.
It is in this way that companies and agents are taking stock and biding their time, said HSR's Mr Yeo.
"Since the introduction of the measures, there has been a slowdown in the market," he said. "But trained agents believe the market will rebound. So they are stocking up on their inventory. They are creating more contacts and increasing their database. So when there is a market change, they will be ready."