New Reporter
10-08-23, 17:54
No-agent property platforms sprouting up but they’re not eating agents’ lunch yet
Aug 09, 2023
A HANDFUL of web-based property dealing platforms are sprouting up, touting themselves as one-stop shops connecting buyers and sellers without an agent as go-between.
Armed with data tools, they aim to facilitate transactions directly, in a crowded marketplace where traffic is still largely controlled by real-estate agents.
The latest to jump into the fray is Kucing – Malay for “cat” – a peer-to-peer platform for residential property sales that cuts out real-estate agents completely.
Co-founders Mathieu Goarant and Guillaume Garagnon told The Business Times (BT) they believe Singapore, with its highly educated and tech-savvy population, is ready for such a model that embraces tools and technology typically reserved for industry professionals.
Features include interactive augmented heat maps showing the latest transaction prices in the area, market trends, 3D maps for visualisation and booking of home visits. The platform also lets users chat, track sales, and negotiate deals. Market information is drawn from government agencies and updated monthly.
When a deal is agreed upon, Kucing can refer buyers and sellers to lawyers. The transaction is completed off-app.
While users save on agent commission fees, which typically amount to 1 per cent to 2 per cent for resale deals, Kucing charges S$115 a month for full access to its features. A free version is available, with limits on information retrieval and the number of viewing arrangements and listings.
Kucing believes that there is a gap in the market where “frustration exists on both sides for property agents and consumers”, citing recent market survey results.
“A new model is needed right now because the market is ready for it,” said Kucing, which plans to venture into the residential rental market by year-end.
Another new player preparing to launch its platform is OTOT Property, whose founder and chief executive officer Jack Ong agrees that an agent-free app is timely and essential. People have grown accustomed to online experiences, he said, and real-estate transactions can take place without agents in the picture.
“This offers customers and businesses alternative choices and preferences for different levels of customer experience, and it seems to be the direction we are heading,” he said.
However, a zero-commission model “is not sustainable in the long run”, said Ong. “While the commission fee has been shifted to the supply side, the business still needs to be profitable at the end of the day.”
Several online property-listing platforms are up and running in Singapore. Bigger players like PropertyGuru and 99.co provide for sales and rental listings put up by agents and sellers across all market sectors. Property listings are also a major pillar for online classifieds platform Carousell.
Mogul.sg, set up in 2018, charges a S$150 administrative fee for sellers to list their property on the portal, and an agent will be assigned to handle potential buyers’ inquiries. The buyer signs an exclusive agreement with the agent for properties valued at less than S$1.5 million. Sellers of properties above S$1.5 million pay their agent the full commission, and are refunded the S$150.
Mogul.sg chief executive and founder Gerald Sim said that “it is hard to completely eliminate the role of the agent for most people”. A property transaction “is a time-consuming process and many are not ready to deal with this during the work week”, he said.
But with data analytics and technology, the role of agents today has been reduced to that of “an appointment and transaction concierge”.
He believes an agent is still needed in the equation to deal with the administrative work and documentation required for a transaction, and that with technology, a consumer is able to get the service of an agent “at a cost that is immensely cheaper”.
With over 95 per cent of property transactions still facilitated by agents today, “the notion of a truly ‘commission-free’ approach is somewhat misleading”, said Abhishek Hota, the chief executive officer (Singapore) of 99 Group.
“Selling a property involves significant costs and investment of time, costs, skills and opportunity. A business that offers minimal or no charges to sell property may indicate either an inadequate level of service, or a catch hidden somewhere else in the process,” he said.
99.co does not intend to adopt a direct buyer-seller app or service, it told BT.
“While the idea of removing agents from real-estate transactions may seem appealing in terms of cost savings and direct communication, the practicality and value that agents bring to both buyers and sellers cannot be understated,” said Abhishek. The networks agents have are also available to give sellers wider reach.
Attempts “to forgo agent involvement may expose individuals to significant risks and challenges, potentially offsetting any initial perceived advantages”, he cautioned.
PropertyGuru Singapore’s country manager Tan Tee Khoon agreed that agents who are trained generally come with “the requisite and relevant knowledge to help clients transact their properties at the best possible price at the right time”.
Besides, “commissions with the agents are negotiable and can also be performance-based, so that the sale, lease or purchase can be a win-win”, he added.
Technology may disrupt the property transaction process, but consumers value a human touch, said OTOT’s Ong, who identifies artificial intelligence as a bigger threat to traditional agents’ services.
https://www.businesstimes.com.sg/property/no-agent-property-platforms-sprouting-theyre-not-eating-agents-lunch-yet
Aug 09, 2023
A HANDFUL of web-based property dealing platforms are sprouting up, touting themselves as one-stop shops connecting buyers and sellers without an agent as go-between.
Armed with data tools, they aim to facilitate transactions directly, in a crowded marketplace where traffic is still largely controlled by real-estate agents.
The latest to jump into the fray is Kucing – Malay for “cat” – a peer-to-peer platform for residential property sales that cuts out real-estate agents completely.
Co-founders Mathieu Goarant and Guillaume Garagnon told The Business Times (BT) they believe Singapore, with its highly educated and tech-savvy population, is ready for such a model that embraces tools and technology typically reserved for industry professionals.
Features include interactive augmented heat maps showing the latest transaction prices in the area, market trends, 3D maps for visualisation and booking of home visits. The platform also lets users chat, track sales, and negotiate deals. Market information is drawn from government agencies and updated monthly.
When a deal is agreed upon, Kucing can refer buyers and sellers to lawyers. The transaction is completed off-app.
While users save on agent commission fees, which typically amount to 1 per cent to 2 per cent for resale deals, Kucing charges S$115 a month for full access to its features. A free version is available, with limits on information retrieval and the number of viewing arrangements and listings.
Kucing believes that there is a gap in the market where “frustration exists on both sides for property agents and consumers”, citing recent market survey results.
“A new model is needed right now because the market is ready for it,” said Kucing, which plans to venture into the residential rental market by year-end.
Another new player preparing to launch its platform is OTOT Property, whose founder and chief executive officer Jack Ong agrees that an agent-free app is timely and essential. People have grown accustomed to online experiences, he said, and real-estate transactions can take place without agents in the picture.
“This offers customers and businesses alternative choices and preferences for different levels of customer experience, and it seems to be the direction we are heading,” he said.
However, a zero-commission model “is not sustainable in the long run”, said Ong. “While the commission fee has been shifted to the supply side, the business still needs to be profitable at the end of the day.”
Several online property-listing platforms are up and running in Singapore. Bigger players like PropertyGuru and 99.co provide for sales and rental listings put up by agents and sellers across all market sectors. Property listings are also a major pillar for online classifieds platform Carousell.
Mogul.sg, set up in 2018, charges a S$150 administrative fee for sellers to list their property on the portal, and an agent will be assigned to handle potential buyers’ inquiries. The buyer signs an exclusive agreement with the agent for properties valued at less than S$1.5 million. Sellers of properties above S$1.5 million pay their agent the full commission, and are refunded the S$150.
Mogul.sg chief executive and founder Gerald Sim said that “it is hard to completely eliminate the role of the agent for most people”. A property transaction “is a time-consuming process and many are not ready to deal with this during the work week”, he said.
But with data analytics and technology, the role of agents today has been reduced to that of “an appointment and transaction concierge”.
He believes an agent is still needed in the equation to deal with the administrative work and documentation required for a transaction, and that with technology, a consumer is able to get the service of an agent “at a cost that is immensely cheaper”.
With over 95 per cent of property transactions still facilitated by agents today, “the notion of a truly ‘commission-free’ approach is somewhat misleading”, said Abhishek Hota, the chief executive officer (Singapore) of 99 Group.
“Selling a property involves significant costs and investment of time, costs, skills and opportunity. A business that offers minimal or no charges to sell property may indicate either an inadequate level of service, or a catch hidden somewhere else in the process,” he said.
99.co does not intend to adopt a direct buyer-seller app or service, it told BT.
“While the idea of removing agents from real-estate transactions may seem appealing in terms of cost savings and direct communication, the practicality and value that agents bring to both buyers and sellers cannot be understated,” said Abhishek. The networks agents have are also available to give sellers wider reach.
Attempts “to forgo agent involvement may expose individuals to significant risks and challenges, potentially offsetting any initial perceived advantages”, he cautioned.
PropertyGuru Singapore’s country manager Tan Tee Khoon agreed that agents who are trained generally come with “the requisite and relevant knowledge to help clients transact their properties at the best possible price at the right time”.
Besides, “commissions with the agents are negotiable and can also be performance-based, so that the sale, lease or purchase can be a win-win”, he added.
Technology may disrupt the property transaction process, but consumers value a human touch, said OTOT’s Ong, who identifies artificial intelligence as a bigger threat to traditional agents’ services.
https://www.businesstimes.com.sg/property/no-agent-property-platforms-sprouting-theyre-not-eating-agents-lunch-yet