http://www.straitstimes.com/archive/...arket-20140809

Realtors joining forces to survive sluggish market

Latest partnership of three agencies comes after bigger tie-up last month

Published on Aug 9, 2014 1:05 AM

By Cheryl Ong


MORE real estate firms are banding together to consolidate their strengths as challenging market conditions have made it harder to run solo.

A new partnership, the Real Alliance, was formed from three agencies - C&H Group, Remax and More Property - on Monday.

The coalition, with a combined strength of 1,500 agents, aims to broaden its database of properties and network of buyers in a market where transaction volumes have almost dried up on all fronts.

The move follows the formation of a similar group last month, after four agencies joined forces to form the Project Alliance Group. It comprises SLP International, OrangeTee, HSR International and Dennis Wee Realty, and has about 6,000 agents in all.

The focus of the latest grouping, the Real Alliance, will be on shifting units at new launches, but its portfolio of properties for sale will also include foreign projects - giving agents some respite from the tepid local market.

"Because of factors like the total debt servicing ratio and cooling measures, it makes the environment very challenging for agents," said Remax executive director Thomas Tan. "If they can't sell local properties, they still need to put bread on the table. One of the options obviously is to sell overseas properties."

The biggest agencies here are PropNex Realty, with about 5,600 agents, and ERA Realty, which has around 5,700 members. There are about 31,783 licensed agents here, according to the Council for Estate Agencies.

Mr Kenneth Tan, chief operating officer at C&H Group and a founder of Real Alliance, said it would be easier for the firms to land new projects this way.

"Nowadays, developers like to see that it's a collaboration of agencies. So we say, we'll give you the three together, instead of you having to put it together. You will get the numbers and a bigger base (of buyers)," he said.

Property agents who are members will also be given "preferential" commissions when marketing units at projects the alliance secures from developers, as opposed to realtors who do not belong to any of the three agencies.

Currently, the group has about 15 projects under its wing.

The firms also hope to benefit from collaborations in training their staff and, of course, a broader base of properties to be sold, but their operations will remain autonomous, said Mr Shawn Tan, key executive officer at More Property.

The partnership expects to market resale properties next as they see bright spots in the segment.

Developers who have forked out hefty amounts for land are finding it hard to dangle more discounts at new launches, noted Remax's Mr Tan.

But buyers looking for affordable homes might take to the secondary market for cheaper deals. "You're dealing with individual owners who are more open to negotiation in the resale market," he said.

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