New Reporter
03-05-23, 11:41
Blueground rides rental market wave to expand in Singapore
Apr 26, 2023
WITHIN months of moving into the Singapore residential market in July 2022 with its rental management model, Blueground had chalked up a 95 per cent occupancy rate for its apartments here.
The outcome, said Blueground’s Singapore general manager Archana Ashar, is a “clear sign” that the company is meeting a gap in the local rental market.
Blueground manages properties for individual landlords, who are guaranteed full rental income regardless of occupancy rate. The company rents unfurnished apartments and puts in its signature interior design and furnishing. It takes on maintenance and cleaning, as well as all operations and handling of tenant-related matters before subleasing the property at a marked-up price.
“Owners are not charged any fees – we pay them the base rent that is agreed upon,” said Ashar. “We ensure owners have a steady income coming in, so they don’t have to worry about their tenant losing their job or leaving the country and then needing to find a replacement.”
The minimum rental period for Blueground’s tenants is three months, substantially shorter than a typical private lease of one to two years. Its dynamic pricing model includes a fixed utility fee, booking fee and one-time cleaning fee.
A look at Blueground’s website shows some 60 apartments available. These include a one-bedroom unit at Principal Garden in Redhill, offered at S$4,050 a month; a two-bedroom unit at 120 Grange in the Orchard area at S$6,390; and a two-bedroom unit at The Sail @ Marina Bay for S$7,330.
Founded in 2013, Blueground operates 12,000 apartments across more than 30 cities globally. In 2022, its global organic revenue was US$300 million. It plans to double revenue in 2023 and expand to 40,000 apartments in 50 cities by 2025.
The company has raised a total of US$256 million so far, with its latest Series C funding round in September 2021 raising US$180 million. The round was led by WestCap Group, with Geolo Capital, VentureFriends and Prime Ventures participating.
Blueground also recently acquired two companies – Brazilian rental startup Tabas and US-based on-demand housing provider Travelers Haven.
In 2022, Blueground moved into Singapore and Hong Kong, where it now operates 100 apartments. In Singapore, Blueground operates more than 60 units, with plans to double this number by the year-end.
It is also looking to launch a partnership model called “Blueground Franchise” in the region, which provides training, support and resources for franchisees.
Christos Misailidis, Blueground’s head of Asia-Pacific and chief strategic partnerships officer, said Singapore and Hong Kong have a growing expatriate community, and both are experiencing the rebound of corporate and leisure travel.
“The demand for flexible, long-term accommodation has never been more profound – and more so now that it’s becoming normalised for employees to work from anywhere in the world,” he said.
Blueground entered the Singapore market at a time when a supply crunch and strong post-pandemic inflows of expatriates meant record-high rentals being signed in the city.
“Last year, when we launched, we saw that people were quoting very high numbers and willing to pay much more than market prices,” said Ashar.
“But as a company, we want to ensure we are growing a sustainable business, so we don’t offer market price or higher than market price just to get the unit.”
https://www.businesstimes.com.sg/property/blueground-rides-rental-market-wave-expand-singapore
Apr 26, 2023
WITHIN months of moving into the Singapore residential market in July 2022 with its rental management model, Blueground had chalked up a 95 per cent occupancy rate for its apartments here.
The outcome, said Blueground’s Singapore general manager Archana Ashar, is a “clear sign” that the company is meeting a gap in the local rental market.
Blueground manages properties for individual landlords, who are guaranteed full rental income regardless of occupancy rate. The company rents unfurnished apartments and puts in its signature interior design and furnishing. It takes on maintenance and cleaning, as well as all operations and handling of tenant-related matters before subleasing the property at a marked-up price.
“Owners are not charged any fees – we pay them the base rent that is agreed upon,” said Ashar. “We ensure owners have a steady income coming in, so they don’t have to worry about their tenant losing their job or leaving the country and then needing to find a replacement.”
The minimum rental period for Blueground’s tenants is three months, substantially shorter than a typical private lease of one to two years. Its dynamic pricing model includes a fixed utility fee, booking fee and one-time cleaning fee.
A look at Blueground’s website shows some 60 apartments available. These include a one-bedroom unit at Principal Garden in Redhill, offered at S$4,050 a month; a two-bedroom unit at 120 Grange in the Orchard area at S$6,390; and a two-bedroom unit at The Sail @ Marina Bay for S$7,330.
Founded in 2013, Blueground operates 12,000 apartments across more than 30 cities globally. In 2022, its global organic revenue was US$300 million. It plans to double revenue in 2023 and expand to 40,000 apartments in 50 cities by 2025.
The company has raised a total of US$256 million so far, with its latest Series C funding round in September 2021 raising US$180 million. The round was led by WestCap Group, with Geolo Capital, VentureFriends and Prime Ventures participating.
Blueground also recently acquired two companies – Brazilian rental startup Tabas and US-based on-demand housing provider Travelers Haven.
In 2022, Blueground moved into Singapore and Hong Kong, where it now operates 100 apartments. In Singapore, Blueground operates more than 60 units, with plans to double this number by the year-end.
It is also looking to launch a partnership model called “Blueground Franchise” in the region, which provides training, support and resources for franchisees.
Christos Misailidis, Blueground’s head of Asia-Pacific and chief strategic partnerships officer, said Singapore and Hong Kong have a growing expatriate community, and both are experiencing the rebound of corporate and leisure travel.
“The demand for flexible, long-term accommodation has never been more profound – and more so now that it’s becoming normalised for employees to work from anywhere in the world,” he said.
Blueground entered the Singapore market at a time when a supply crunch and strong post-pandemic inflows of expatriates meant record-high rentals being signed in the city.
“Last year, when we launched, we saw that people were quoting very high numbers and willing to pay much more than market prices,” said Ashar.
“But as a company, we want to ensure we are growing a sustainable business, so we don’t offer market price or higher than market price just to get the unit.”
https://www.businesstimes.com.sg/property/blueground-rides-rental-market-wave-expand-singapore