Along with overseas expansion, ERA will also fully embrace the changes under the Real Estate Industry Transformation MapSingapore, 8 February 2018 – Continuing its expansion efforts across Asia Pacific, ERA Realty Network (ERA) welcomed and introduced ERA Cambodia at the 2018 ERA Asia Pacific Business Conference. Through the company’s burgeoning global network, ERA agents will be able to tap into each other’s expertise to create value for their clients.
Held at Mediacorp’s MES Theatre this year, the annual conference recognises the achievements of ERA’s Top Achievers in Singapore and Asia Pacific. Mr Tan Chuan-Jin, Speaker of Parliament, graced the event as Guest-of-Honour and also partook in an engaging dialogue session with ERA’s management and agents.
Strong showing of growth
ERA is the wholly owned subsidiary of APAC Realty Limited, which was listed on SGX Mainboard in September 2017. As at 5th February, its IPO at $0.66 grew more than 50% in share price. According to industry data and media reports, APAC Realty ranks amongst the top 20 stock picks in Singapore this year, and is one of the top seven stock highlights of 2018 with the greatest growth potential.
APAC Realty Limited possesses the exclusive ERA regional master franchise rights to 17 countries in Asia Pacific. Boasting a vast network of close to 17,500 agents across Singapore, Indonesia, Japan, Korea, Malaysia, Taiwan, Thailand, Vietnam and now Cambodia, it is in an ideal position to offer regional real estate and business opportunities for its clients.
ERA is poised to further its already excellent performance. It has expanded its services from private and HDB property transactions to auction, commercial and industrial, project marketing, property management, research and valuation. ERA has already secured more than 10,000 units in 16 projects, and more exciting projects are in the pipeline.
Digital transformation
ERA has pledged its commitment to embrace the government’s Real Estate Industry Transformation Map (ITM), and has unveiled a few digital initiatives.
The fast and mobile-responsive FindPropertyAgent.sg is one of such initiatives. Testimonials and ratings, as well as achievements, completed transactions and trainings are published on the agents’ profile pages. Through their profiles, the agents can build a strong online reputation. The website is equipped with smart algorithms, which help consumers find suitable agents based on their property search requirements. With this and other industry-first features, homebuyers can make informed decisions when it comes to engaging a real estate agent.
Driven by intrapreneurship, ERA has come up with new ideas to enhance its digital ecosystem: mobile applications (i-ERA, ERA SG Projects); website (ERA.com.sg.); the customer relationship management system 24/7 PropWatch; and myERA, the internal portal for real estate agents to execute transactions.
Not only that, ERA has furnished its headquarters with state-of-the-art equipment. The training rooms are fitted with touchscreen whiteboards that increase engagement; trainers are also adopting the use of interactive videos and audio with different mobile tools to heighten audience involvement.
Giving back
As the only listed real estate agency in Singapore, ERA is able to achieve its success thanks to the support of its agents and clients over the past 36 years. As a token of appreciation, ERA hosted the Race to Las Vegas Customer Survey Challenge Lucky Draw in January 2018, an industry-first initiative that encourages its customers to leave ratings for their real estate agents. Mr Wong Chong Meng won a trip to Las Vegas, while his agent Sean Seah Jin Shu also won a return air ticket and accommodation at Las Vegas.
ERA agents also get to earn ERA miles for services rendered to customers, another unique initiative that the company has launched. The agents can redeem name cards, corporate merchandise and offset flight tickets to ERA’s business conferences held overseas with their accumulated miles.
Besides incentives for clients and welfare for agents, ERA also places a strong emphasis on corporate social responsibility. To usher in the Year of the Dog, ERA will be handing out festive packs, hong bao and furniture to low-income families with Adviser to Hong Kah North Grassroots Organisations, Dr Amy Khor on 11 February 2018. The company has organised a fundraising campaign last month and matched a dollar for every dollar contributed.
Over the years, ERA has spread the love by working with not-for-profit organisations such as Community Chest, SOSD and Canossaville Children and Community Services. Its leaders walked the walk by donating generously in the Charity Lucky Draw for The Singapore Association for the Deaf during ERA’s 2017 Christmas party.
10 January 2018 – ERA Realty Network Singapore (ERA) yesterday concluded its Race to Las Vegas Challenge, the company’s first-of-its-kind initiative that encourages its customers to leave genuine reviews for its real estate agents. Wong Chong Meng was announced as the lucky customer, who won return air tickets for two to Las Vegas and a 4-Day-3-Night accommodation package.The challenge is ERA’s very first campaign to reward and encourage customers to provide authentic ratings for its agents. With these ratings, customers looking to engage ERA’s real estate agents can make more informed decisions. The agents also benefit as they can build a strong online reputation through word-of-mouth recommendations.
The reviews are then published on the agents’ profile pages on FindPropertyAgent.sg. The profile pages also include an agent’s contact information, area of speciality, completed transactions, past achievements and current property listings. They help property buyers and sellers to find their ideal real estate agents.
Wong said, “This has been the greatest news to start the new year and we would like to thank ERA for the opportunity. When I was first informed about the contest, I felt it’s a very good initiative – satisfied customers like me get to share feedback on the agents’ services for others to pursue, and in turn home buyers or sellers can be introduced to trustworthy agents like Sean Seah!”
“Sean provides a marvelous service. His dedication and follow-up help me to rent out the property quickly. In the event the ex-tenant broke the lease contract, he also took the hassle out of everything with both professionalism and recommendation. It would be tensed without him to negotiate and rent out for me again.”
Sean Seah Jin Shu, who served Wong, also won a return air ticket and accommodation at Las Vegas. Sean shared, “It’s a double joy for me. I’m very happy that my client Chong Meng appreciates my efforts and service. Most importantly, I’m given the opportunity to attend the annual ERA International Business Conference in Las Vegas, where I will be able to meet more inspirational real estate leaders from all around the world. I will continue to improve and provide first-rate service to all my clients.”
Mr Jack Chua, Chief Executive Officer of ERA Singapore says: “As one of the leading real estate agencies in Singapore, ERA is grateful for the trust and support from our salespersons and customers over the past 36 years. With these rewarding campaigns, we hope to gather more customer feedback that will in turn be used as lessons to up the calibre of our salespersons. We will also continue to roll out more initiatives to reward our customers and salespersons.”
“Real estate agents handle the greatest investments of families and can make life better for homeowners. Though most are only remembered when the need to buy or sell a house arises again, it is heart-warming to know that many clients have become valued friends of our agents due to the latter’s sincerity,” Jack added.
The Race to Las Vegas Challenge was open only to customers of ERA Singapore who used and rated the service of their salesperson from 1 July to 31 December 2017. These include resale and new project, rental or auction transactions.
For future submission of reviews, customers of ERA Singapore can go to ReviewPropertyAgent.sg, which will be live from 15 January 2018 onwards.
Singapore, 22 Dec 2017 – This is the season of giving and loving! In the spirit of Christmas, division directors as well as team mates from ERA Realty Network (ERA) raised S$3,000 during its recent gathering. The money is donated to the Singapore Association for the Deaf.The Singapore Association for the Deaf serves deaf and hard-of-hearing persons of all ages in Singapore. ERA’s contributions will support its operating services such as sign language interpretation, notetaking and hearing care for this community.
ERA’s Christmas fundraising is part of its ongoing corporate social responsibility initiatives. The organisation has been supporting SOSD, a volunteer-run organisation dedicated to ensuring the welfare of Singapore’s street dogs. Its dog shelter rescues, rehabilitates and rehomes strays to give them a second chance at life. ERA has extended a helping hand to raise awareness about SOSD’s adoption and rescue programmes since 2016.
ERA has also worked with Canossaville Children and Community Services to bring joy to its charges. Earlier this year during Chinese New Year, it organised a celebration for the children, with ERA’s agents engaging the latter with lion dance, games and storytelling activities.
ERA Realty Network’s New FindPropertyAgent.sg Portal Offers Customised Digitally Engineered Solution For Property Search. The new property agent search portal will address existing gaps in property search experience with transparent and comprehensive for sale/rent listings, as well as the corresponding agents’ track record in transactions and listings.Singapore, 24 Oct 2017 – As Singapore is moving towards a smart nation, ERA Realty Network, the largest international and only listed real estate agency in Singapore, is set to launch a new Property Agent Search Portal named FindPropertyAgent.sg. This is part of the company’s continued efforts to provide innovative breakthrough products and services catering to consumers’ and real estate agents’ every need.
Currently, consumers may not have access to the performance or detailed background information about the agents. There have also been scenarios of duplicated and outdated property listings that are offered by online advertisements.
The introduction of FindPropertyAgent.sg will streamline the property search process and enhance the matching process by integrating all the key factors for consideration on a single platform. This will provide consumers with a customised search experience unique to their needs.
By utilising the smart filters function, clients can now choose their preferred agent based on genuine service rating and reviews, specialty, comprehensive property details such as price, psf and size. In addition, they will be able to access to detailed information such as agents’ past transactions, current listings, awards and training to make more informed decisions.
Current geolocation is also available, allowing users to check on nearby properties wherever they are. They can refer to the nearby past transactions with pricing for comparison.
All the listings and transactions will be updated real-time to provide users with the most current information. Existing listings will be automatically deleted after 90 days or sold, whichever is earlier.
In summary, FindPropertyAgent.sg will offer nine key features:
1. Current geolocation
2. Preferred criteria including property type, estate or district
3. Search by Agent Name
4. Overall Service Level Index Rating
5. Genuine customers’ review
6. Specialty of the real estate agents (number of Listings + Transactions)
7. Smart Filter (Price/psf/Size)
8. Awards received by the agents
9. Training programmes attended by the agents
Designed with consumers in mind, the new portal is set to be one of the most comprehensive technological platforms for customised property search experience.
Singapore, 30 Jun 2017 – ERA Realty Network (ERA), the leading global real estate network with 36,000 sales associates in 2,350 offices across 32 countries, will expand its network into Vietnam. Together with local partner Eurocapital JSC, the property arm of The Eurocapital Group, a private investment group headquartered in Vietnam, ERA has incorporated ERA Real Estate Vietnam. This allows ERA to further extend its reach in the Asia Pacific Region where it holds the master franchise with almost 16,000 sales associates in 642 offices across seven countries – Singapore, Japan, South Korea, Taiwan, Thailand, Malaysia and IndonesiaEurocapital JSC is Vietnam’s leading professional real estate brokerage, consultancy and investment advisory, transacting over US$90 million in property services for 2016. With its strong competence in banking and private investments, project development and brokerage services from its holding company, The Eurocapital Group, Eurocapital JSC is the natural choice partner for ERA to work with to enter the Vietnam market.
ERA Real Estate Vietnam has established its headquarters and three local offices in Ho Chi Minh City. The venture in Vietnam has over 150 sales associates now training under ERA qualifications to become official ERA associates. In the next five years, this venture aims to have 3,000 associates in 25 offices across the country, focusing on the metropolitan areas such as Ho Chi Minh City, Hanoi, Da Nang and other tourist destinations such as Phu Quoc and Nha Trang.
With Vietnam’s growth booming at 6.2 per cent increase in GDP in 2016, the country is one of the markets with the highest growth within Asia. The country has recorded an FDI of US$24billion for foreign investments and has maintained this momentum well into 2017. According to a report by Savills World Research, the total dwelling sales in Ho Chi Minh City surged by 193 per cent in Q32016 year on year. In the same quarter, its private home condominium sales transactions saw a rise of 33 per cent quarter-on-quarter. The property market in Vietnam is surging with government measures across the country’s infrastructure with construction management and banking credit risk control to improve urbanisation. Major cities will see the acceleration of both residential and commercial buildings in development while the implementation of new laws and banking reforms allow for both private and commercial investments to take place.
“These are indications which make for a good start for our entry into the Vietnamese market,” says Jack Chua, Chief Executive Officer of ERA. We are pleased to work with a knowledgeable partner who has the ground knowledge and track record in managing property services and transactions of this nature. We are confident with the support from team Eurocapital, we will create a successful network and team with ERA Real Estate Vietnam and tap on this market’s growth potential,” Mr Chua continues.
Today’s signing ceremony for the franchise agreement between ERA and Eurocapital JSC was signed by Mr Jack Chua of ERA and Mr Nhien Nguyen, CEO of Eurocapital JSC, held at ERA’s headoffice at Mountbatten Square. Upcoming projects will be focused on property brokerage services for high-quality projects for both residential and hospitality residences in major cities and tourism hot spots. Established partnerships with various property developers such as Sun Group, CEO Group, M.I.K. Sacomreal, Kien A for local partnerships and international property developers from Singapore, Hong Kong, China, South Korea and Japan such as Keppel Land and Sunwah Group.
Singapore, 17 Mar 2017 – In an unexpected move on 10th March, the government announced some changes to the set of property cooling measures which were progressively introduced from 20th February 2010 to 9th December 2013.There were four main parts to the announcement.
First, the Additional Buyer’s Stamp Duty (ABSD) and Loan to Value (LTV) limits are to remain unchanged. Singaporean buyers will need to pay ABSD if they purchase a second residential property and more while Permanent Residents and foreigners will incur ABSD from their first home purchase. The LTV ratio remains at a maximum of 80 per cent for private residential property loans.
Second, the Seller’s Stamp Duty (SSD) would be modified for buyers who purchase residential properties on or after 11th March 2017. Previously, the SSD was payable if homeowners sell off their properties within four years of purchase, at a rate of between four to 16 per cent. The new SSD has had its holding period revised downwards to three years and the duty rate has been reduced by four percentage points for every year. The new SSD rates now range from four per cent for residential properties sold in the third year to 12 per cent for those sold in the first year.
Third, the Total Debt Servicing Ratio (TDSR) was relaxed so as to allow for borrowers to monetise their properties. The Monetary Authority of Singapore will no longer apply the TDSR framework to mortgage equity loans with LTV ratios of 50 per cent and below.
Last, a new stamp duty treatment for the acquisition and disposal of equity interest in property holding entities has been introduced. Transactions involving residential properties will be subject to the same stamp duty rates regardless of whether through a direct sale of the property or through the sale of shares in the holding entity.
To the typical property buyer and investor, the tweak to the SSD is the only material one. As there is hardly any speculation in the residential property market, the tweaking of the SSD holding period and rates is a very safe and calibrated approach. It brings relief and a way out for investors and property owners who may have to dispose of the property bought in the short term without the additional burden of SSD (if sold in the 4th year), or having to pay a reduced SSD should they have to sell within the 3 year holding period. The additional flexibility in the timing of sale will certainly benefit both owner occupiers and investors.
Though there is much to cheer about, this change in SSD period and rates is only applicable to residential properties bought on and after 11 March 2017. There is no change to SSD holding period and rates for residential properties bought between 14 January 2011 and 10 March 2017.
As such, this measure is a forward looking one that allows prospective residential property purchasers to re-calibrate their calculations, expectations and holding period, should they purchase residential properties on or after 11 March 2017. While it may change slightly how investors and home-buyers look at the timeline on holding the properties, it is not expected that this tweak will have the effect of pushing up property prices in both the primary and secondary market.
In today’s market, opportunities are plentiful for home buyers. The main dampers of buying demand, the ABSD and TDSR, are still in force. Hence, developers and individual sellers will still have to price their properties realistically in order to achieve the desired sales numbers within the marketing period.
Already, before the tweak to the SSD, figures from the Urban Redevelopment Authority already show that developer sales are picking up, with 977 private residential units sold in February 2017. This figure is 2.6 times that of January. March’s sales figures are expected to be even higher.
With the new SSD in place, investors will probably favour newly launched projects, as the three year holding period coincides with the approximate construction time of the development. This allows investors the flexibility to sell off their unit upon completion of the project without incurring any levy. Also, given the weak rental market currently, buying an uncompleted project allows investors to wait out the downturn.
In addition, developers have deliberately kept the overall quantum of each unit affordable so as to remain attractive. With ample supply in the market, these investors have many choices.
Developers have just started launching their 2017 projects. The Clement Canopy, Grandeur Park Residences and Park Place Residences At PLQ have all met with positive response from investors.
For a “safer” bet, investors could look at developments which are near commercial clusters or have easy access to public transportation. These projects will generally see higher demand for housing units due to a ready tenant pool, and are usually more resilient to market shocks.
For owner occupiers, good deals are still to be found in the resale market. For instance, in February, some mass market properties were sold at an approximate 20 per cent discount to their purchase price a few years back. For the wealthy, now might be a good time to enter the luxury market. Prices have only decreased by 1.2 per cent over 2016, compared to the three per cent decrease for the overall market. In addition, there have been several cases where buyers picked up very good bargains. For example, a unit in Orchard Scotts was purchased for $3.68 million, less than half the $8.5 million the previous buyer paid for it. At Seascape, a development in Sentosa Cove, a unit was transacted for $6.2 million, while the owner paid $12.8 million for the same property in 2010.
While this time around, the tweaking of the cooling measures is a minor one, we look to the intent rather than form. It would perhaps be an indication that the government is finally prepared to loosen some of the policies now that the property market is on firmer footing. Buyers might be tempted to postpone their plans to wait for more measures to be tweaked. However, as more measures are eased, prices will start to rise. Hence, instead of trying to time their purchase, buyers would be better off buying when they need to, at a reasonable price.
Summary table of current property measures
Source: Inland Revenue Authority of Singapore, Monetary Authority of Singapore, ERA Research
[1] If property is bought on or after 11 March 2017
[2] If property is bought between 14 January 2011 and 10 March 2017
By Eugene Lim, Key Executive Officer and Seah Yao Hui, Assistant Manager, Research
Singapore, 15 Mar 2017 – The West region of Singapore was buzzing with activities in recent months. According to the official URA developer sales statistics released yesterday, the top selling projects for February were The Clement Canopy and Parc Riviera, with 207 and 200 units sold respectively. Both are situated in the Western part of Singapore; The Clement Canopy at Clementi and Parc Riviera at West Coast.Even in the public housing sector, flats located in the West are highly coveted. In the recently concluded February 2017 Build-To-Order (BTO) sale launch, Clementi flats drew the most number of applications, despite their higher prices compared to the Tampines and Punggol flats offered in the same exercise. In addition, a resale five room flat in Clementi crossed the $1 million mark in August 2016, a rare occurrence usually reserved for units at Pinnacle @ Duxton, executive maisonettes and terraces.
In a tender which closed on 9th February, China Construction won a land parcel situated adjacent to Parc Riviera for $291.99 million ($592 per square foot of Gross Floor Area), edging out eight other developers. The winning bid was 7.63 per cent higher than the winning bid for the Parc Riviera site.
Evidently, both homebuyers and developers are optimistic about the prospects of Singapore’s West side. And they certainly have reasons to do so.
Plans are underway to develop the Jurong Lake District into the largest commercial hub outside the Central Business District. The 360 hectare area is set to be home to more than 500,000 square metres of office space, 250,000 square metres of retail space, 1,000 homes and 2,800 hotel rooms when fully developed.
The recent signing of the bilateral agreement between Singapore and Malaysia on the implementation of the High-Speed Rail project is a key development in the area. Once completed, the travelling time between Singapore and Kuala Lumpur will be reduced to a mere 90 minutes.
This provides a strong tenant base for landlords who are looking to rent out their units; and is a major reason why investors are zooming in on properties in the West. Homes in and around Singapore’s second Central Business District (CBD) is also likely to see further headroom for capital appreciation in the years to come.
Adjacent to Jurong, the Clementi area may appeal more to buyers who prefer to be living just outside the hustle and bustle of the major commercial hub; yet near enough to reap the many benefits that the Jurong Regional Centre may bring.
Clementi is already considered a mature estate. It already has in place a comprehensive suite of amenities for residents. In addition, Clementi has the added advantage of having an “educational cluster”. The National University of Singapore, Asia’s top university according to the Quacquarelli Symonds (QS) World University Rankings and Times Higher Education (THE) World University Rankings, is situated there. Nan Hua High School, NUS High School of Mathematics and Science and Anglo-Chinese School (Independent) are all nearby as well. This is definitely an added boon to families with children who are schooling.
As such, it is no surprise that the western part of Singapore is much sought after by owner occupiers and investors alike.
By Eugene Lim, Key Executive Officer and Seah Yao Hui, Assistant Manager, Research
Singapore, 10 Mar 2017 – Housing and Development Board (HDB) flats house over 80 per cent of Singapore’s population, and more often than not, are the first choice of housing for young families. A perennial question amongst this group of buyers has always been: Build-To-Order (BTO) flats versus resale flats, which is the better option?While BTO flats are cheaper, they come with a longer waiting time of around three years before buyers can move in. Conversely, resale flats are pricier, but the sale process takes a shorter time. Buyers’ choice would therefore depend heavily on their individual circumstances. However, with stabilising resale prices and increased Central Provident Fund (CPF) Housing Grants, resale flats have become an increasingly attractive option recently.
In 2016, resale HDB flat prices were almost unchanged, only decreasing by 0.1 per cent over the course of the year. Over the same period, the number of HDB resale transactions increased to 20,813 units. Amongst these transactions, there were 20 units that changed hands above the S$1 million mark. Evidently, resale flats are popular choices amongst buyers.
Is it the right time to buy a resale flat now?
There are several reasons why the number of buyers is on the rise. A key one is that prices have fallen from their peak in 2013 and have been stable since mid-2015. It is extremely unlikely that HDB resale prices will register huge drops in the near future, as buying activity is already picking up at current price levels. Given the limited downside risk, buyers can be more confident in their purchase.
Also, HDB resale transactional information is available publicly. Buyers no longer need to be afraid of getting a bad deal by “overpaying” a premium above the flat’s valuation. They can easily check against HDB’s database, which is updated on a daily basis, prior to any negotiations. Armed with such information, buyers now have a firm ground to centre discussions around.
Recently, Finance Minister Heng Swee Keat announced during Budget 2017 that the amount of grants available to eligible first-timer buyers would be increased with immediate effect. Previously, the Family Grant was S$30,000, but has since been increased to S$50,000 for first timers buying a four-room or smaller resale HDB flat and S$40,000 for those buying a five-room or larger resale flat. Together with the Additional CPF Housing Grant and Proximity Housing Grant, the total amount a first timer is eligible for is now a maximum of S$110,000. Effectively, this makes resale flats more affordable for buyers. This is expected to swing more buyers to the resale market, especially those still deciding between a BTO flat and resale flat, as they capitalise on the higher grant amounts.
Hence, the current market is a favourable one for buyers. Now would be a good time buyers to consider committing to a purchase, especially if they have been sitting on it for some time.
Should I be selling my flat now?
On the other hand, some sellers might have been reluctant to put their unit on the market as prices are lower than the peak some three and a half years ago. However, current market conditions are still favourable for sellers.
For one, HDB resale prices were on the rise from 2005 to 2013, increasing by a total of 104 per cent over 31 quarters. In comparison, the recent slide in prices was only 9.9 per cent over 14 quarters. Most sellers would still be making a healthy profit even if they were to sell today, especially if their purchase was a BTO flat.
For sellers who are looking to upgrade to a private residence, now is an opportune time to make the switch. Private residential prices have been on a decline; and there is abundant supply in the market. Upgraders would be spoilt for choice as developers continue to keep prices attractive in order to woo more buyers.
Of course, there are concerns among sellers that prices would increase after they have sold their unit. However, this is not very likely to happen. As National Development Minister Lawrence Wong said, the government expects HDB resale prices to remain stable due to the healthy supply of resale flats.
In particular, the Mortgage Servicing Ratio (MSR) compels buyers to keep their monthly mortgage repayments to 30 per cent of their household income, thereby capping the maximum loan amount available to them. Any price increase will therefore be tied to income growth. Given that Singapore’s economic growth is forecasted to be in the region of one to three per cent in 2017, any price increase would be a gradual process, instead of a sudden spike.
Also, with the increased grants, there will be more buyers looking to purchase resale flats. Selling may likely be an easier and faster process now. However, sellers should be cautioned against rashly increasing their asking prices for their flats in view of the higher grant amounts, especially if the change is not backed by transaction data. HDB flats are very similar products and buyers can easily switch to another seller who did not raise prices.
No perfect time
Moving forward, we are not expecting huge changes to the HDB resale market. Transactions will probably receive a boost from the higher grant amounts. We are expecting a 10 per cent increase in resale volume this year over 2016, in the region of 22,000 to 23,000 units. Price wise, we might be seeing a modest uptick this year, in the range of 0.1 per cent to 0.5 per cent for the full year.
Unlike in the private residential market, where emphasis is placed on timing for investment purposes, the HDB resale market is much less speculative. As such, our advice to any prospective buyer and seller is to focus on need instead. There is simply no perfect or best timing to enter or exit the HDB resale market.
By Eugene Lim, Key Executive Officer and Seah Yao Hui, Assistant Manager, Research
ERA Realty Network Celebrates its 35th Anniversary by Hosting
Singapore’s Largest International Property Agent Business Conference
The event will be graced by Minister for Social and Family Development Mr Tan Chuan-Jin
SINGAPORE, 28 February 2017 – ERA Realty Network (ERA) is hosting the 2017 edition of Asia Pacific Business Conference today at Marina Bay Sands Grand Ballroom. Minister for Social and Family Development Mr Tan Chuan-Jin will be in attendance and he is slated to engage participants in a 30-minute dialogue session. The conference will also celebrate the stellar achievements and remarkable performances of ERA’s top 300 real estate agents.
In 2016, ERA closed up to 53,000 transactions, handling properties worth a staggering S$19 billion. “Compared with 2015’s performance, ERA has successfully gained a higher market share in some segments despite the bearish market conditions. We closed 6,787 more transactions last year, and our 15.6 percent growth rate is two times higher than the market’s 6.7 percent,” says Jack Chua, Chief Executive Officer of ERA.
ERA is poised to continue its success this year. It has secured new marketing appointments, including The Clement Canopy, Grandeur Park Residences, iNz Residence, Park Place Residences at Paya Lebar Quarter, Seaside Residences, Martin Modern and more.
A stalwart in the industry
The conference is held in conjunction with ERA’s 35th anniversary. ERA’s beginnings were humble: It occupied a tiny 500-square-foot office at Shaw Centre, and had only three agents. The agency has since grown to become a household name in Singapore. Per the latest Council for Estate Agencies’ public registry, ERA is the largest real estate agency in Singapore. Its 6100-strong workforce has served over 400,000 customers, helping them find their dream homes and offices. ERA’s loyal customer base attests to the trust and confidence Singaporeans have in its agents.
ERA’s success is anchored on its ability to keep pace with the times. It believes technology, along with traits such as compassion and empathy, is what will result in a smooth customer experience. Over the years, ERA has introduced and implemented many industry-first initiatives. One such initiative is 24/7 PropWatch, a property watch, search and match service that caters to the demands of tech-savvy consumers. Apart from discovering recent property transactions, homes for sale/rent, and new project launches in their neighbourhoods, consumers can check the number of potential buyers/tenants for their properties and request for a formal valuation report issued by a private-licensed valuer. Speeding up the home-finding journey, this feature is accessible to all members of the public free of charge via ERA’s website.
ERA has also made improvements to its i-ERA mobile app, a nifty tool for its agents. A salient feature is the i-ERA map, which agents can zoom in on to reveal ERA listings and transactions within a selected radius.
Beyond the hardware, ERA also focuses on the heartware. It has in place a robust sales and management career roadmap to enable employees to achieve personal and career breakthroughs. ERA’s scholarship initiative supports and encourages its agents to seek higher education in local institutions. In so doing, it grooms the next generation of competent performers who can contribute and collectively raise the profile of the industry.
ERA strongly believes in extending a helping hand to the community and works extensively with charity organisations such as Community Chest and The Singapore Association For The Deaf (SADeaf). The company also organised games and the distribution of goodie bags during Christmas and Chinese Lunar New Year; bringing the festive cheers to Lions Home for the Elders@Bedok and Canossaville Children and Community Services respectively. Furthermore, ERA aims to rehome 35 dogs with SOSD this year. Mr. Chua explained that these initiatives reignite the spirit of giving. “It also reminds us that there is a lot more from us to give. We believe in inculcating a sense of respect and kindness in every team mate as these values will be reflected in our service and ultimately leads to customer satisfaction.”
Singapore, 11 Jan 2017 – Looking back, 2016 did not turn out to be a bad year for the private residential property market, as some had feared. Transaction volume improved, with developers already selling more units in the first 11 months of the year than the entire 2015. In the resale market, buyers have been active as well, with volume transacted in the first 3 quarters being 27% higher than the corresponding period in 2015.While buyers have been picking up properties all over the island, some locations saw more activity than others. We observe that areas with new projects launches tend to be hotspots. In particular, the three most popular locations with buyers were Districts 19, 9 and 18 in descending order. All of them are home to at least one new launch in 2016, Forest Woods and Stars of Kovan in District 19, Cairnhill Nine in District 9 and The Alps Residences in District 18.
New launches have typically been the focal point of buying activity. Often, newly launched projects will turn out to be the best sellers in the month which they are launched. This is largely due to the intense marketing activities which start a few weeks prior to their launch. This results in increased buyer attention in the locality of the new project. Surrounding projects may get a boost from the heightened buyer interest in the area as well. For example, when The Alps Residences was launched in October this year, sales at neighbouring The Santorini was doubled in the same month.
As such, we expect transaction activity in the coming year to be driven by new launches. Hotspots will likely be the areas where new condominium projects are due to be launched.
Attention will probably on the eastern region of Singapore where three new projects are expected to be launched in the first half of 2017, Lendlease’s Park Place Residences at Paya Lebar, CEL Development’s Grandeur Park Residences at Tanah Merah and Frasers Centrepoint’s Seaside Residences at Siglap. Other key development plans in the East will likely add to the hype. For instance, Changi Airport is on track for its expansion plans, with Terminal 4 expected to be operational in 2017, while Terminal 5 is in the works, and is expected to be larger than Terminals 1, 2 and 3 combined. The additional employment generated is expected to fuel demand for homes in the eastern region of Singapore.
In the West, several condominium projects are also gearing up for launch in 2017. UOL’s The Clement Canopy at Clementi will probably be launched in the first half of 2017 while Qingjian Realty’s mixed development at Bukit Batok is expected to be launched in the latter half of the year. Together with the launch of Parc Riviera in late 2016, these projects will collectively generate interest and awareness for the area, which has not seen any new launch in a while.
In addition, with the recent signing of the bilateral agreement between Singapore and Malaysia on the implementation of the High-Speed Rail project, the western side of Singapore is expected to gain much appeal. Also, the development of the Jurong Lake District has served as a major attraction to buyers as it is envisioned to be the main commercial centre of the west.
Besides these new property hotspots, some areas have been continually seeing strong demand from buyers. These places are usually located near major commercial clusters, as the demand for employment helps drive demand for housing. To reduce travelling time, most people would choose to live near their workplace.
Districts 9 and 10 have been very popular among the well-heeled as they are the most prestigious residential areas in Singapore, and only a short drive away from the Central Business District. The multiple luxury developments also mean that wealthy buyers will be able to find one which suits their needs. Ardmore Three, Cairnhill Nine, OUE Twin Peaks and Sophia Hills were some of the projects which were popular with buyers in 2016.
The city fringe, which offers a reasonable trade-off between the distance away from the Central Business District and price, has been seeing a steady stream of buyers. Sale launches in city fringe areas have performed well, with Sturdee Residences, GEM Residences, The Poiz Residences and Thomson Impressions being favourably received by buyers.
Residential developments near secondary employment clusters have also been on buyers’ radar. For example, buyers have been active near the North Coast Innovation Corridor, which stretches from Woodlands to Seletar and Punggol. Major commercial centres along the Corridor include Seletar Aerospace Park and Woodlands Regional Centre. Seletar Aerospace Park is home to more than 60 aerospace companies, and more than 10,000 new jobs are expected to be created. Woodlands is envisioned to be developed as the next regional centre after the Jurong Lake District and will be home to an estimated 100,000 new jobs. Savvy buyers have been picking up residential units in housing estates surrounding these areas. Examples include The Wisteria and Symphony Suites in Yishun, Kingsford Waterbay in Hougang, and Riverbank @ Fernvale at Sengkang.
While we have attempted to list some of the property hotspots in 2017, the places are by no means exhaustive. If buyers prefer to take a longer term perspective, they could also consider the up and coming new towns Bidadari and Tengah. Bidadari is being actively developed into a residential town, with the government scheduled to release two plots of land intended for private housing and a retail mall along with thousands of units of public housing. Meanwhile, Tengah will be the latest residential town to be planned after Punggol. Envisioned as a “Forest Town”, it will incorporate lots of greenery and new technology, including smart homes and smart transportation such as self-driving cars.
With the good variety of new projects coming on stream this year; together with the proven popularity of selected current projects, 2017 certainly looks set to be another exciting year for home buyers!
Commercial properties: An alternative investment to consider
For investors who wish to invest in another asset class, commercial properties are a viable alternative to residential properties.
However, the purchase of commercial properties is subject to a slightly different set of regulations from residential properties and investors, before making any purchases, should carefully consider their investment objectives and weigh each available option.
Investors looking to purchase a commercial property should be aware of the following:
• Buying of commercial properties is subject to Goods and Service Tax (GST)
Individuals buying a commercial property will be required to pay the 7% GST on the purchase price. However, an investor who owns a company and purchases a commercial property through it may apply to claim back the GST amount, subject to the guidelines set by the Inland Revenue Authority of Singapore (IRAS).
• The purchase of commercial properties does not attract the Additional Buyer’s Stamp Duty (ABSD)
Any individual who purchases a second home onwards is required to pay at least a 7% ABSD on the purchase price. However, there is no such regulation for commercial properties.
• Investors can sell their commercial properties at any time
Any home owner selling their residential property within four years will be required to pay the Seller’s Stamp Duty (SSD). Depending on the holding period, the SSD payable can range from 4% to 16%. Buyers of commercial properties are not subject to this and can choose to sell off their properties and exit the market at any time.
Real estate remains a popular investment choice, even in this time where economic conditions are lacklustre. Historically, in land scarce Singapore, many property investors have seen capital gains over time. However, property investment is not risk free, as the property market is dynamic and is affected by many factors that have impact on supply, demand and therefore price. Investors have to balance their risk appetite with their objectives when selecting the appropriate property class.
By Eugene Lim, Key Executive Officer and Seah Yao Hui, Assistant Manager, Research