In response to the growing demand for housing and to address market adjustments, the Singapore government has recently announced its third round of cooling measures, aimed at moderating investment demand through an increase in Additional Buyer’s Stamp Duty (ABSD) rates for residential property.

Marcus Chu, CEO of APAC Realty & ERA Asia Pacific, said, “The revision of ABSD rates is expected to primarily impact foreign buyers. With Singapore’s property market being perceived as a stable and secure investment ground, it has witnessed a surge of foreign interest, which has driven up property prices, especially in private residential real estate, by 3.2% in Q1 2023, as compared to 0.4% in the previous quarter. With the revised ABSD doubled for foreigners (from 30% to 60%), it may pose temporary challenges, but they are expected to pave the way for a more resilient and thriving residential real estate market in the long run.”

The revision of ABSD rates across all are illustrated as follows:

Source: MND, MOF, and MAS joint press release on 26 April 2023

To delve deeper into the foreign buyers in the private residential segment, ERA’s Research and Market Intelligence has identified the top five purchasers based on the country and quantity of units bought in 2022:

Source: URA, ERA Research and Market Intelligence.

With foreign buyers inflating prices in Singapore’s private property market, the revision of the ABSD rates aims to prioritise owner-occupied housing. The new measures would help stabilise property prices and ease the strain on tight rental and housing markets by boosting the housing supply. This is especially important given the challenges posed by high mortgage interest rates, environmental and economic uncertainties, and the growing concerns around global uncertainties.

First-time buyers of residential properties in Singapore, mainly Singapore Citizens (SCs) and Singapore Permanent Residents (SPRs), will not be affected as there will be no changes in ABSD rates (0% and 5% respectively). These buyers make up 90% of all residential property transactions according to data from 2022.

Eugene Lim, Key Executive Officer of ERA Singapore, adds, “Investors and foreigners are likely to back down and re-evaluate their options, but as Singapore Citizens (SCs) and Singapore Permanent Residents (SPRs) first time buyers are not affected by this increase, we can expect them to be the key demand drivers in the months ahead.”

APAC Realty Limited (“APAC Realty”, the “Company” or together with its subsidiaries, the “Group”), a leading real estate services provider which operates a market-leading real estate brokerage in Singapore under the ERA brand, announced that it had today entered into a ERA Master Franchise Agreement (the “Agreement”) with ERA Laos Co. Ltd. (“Franchisee” or “ERA Laos”).

Under the Agreement, ERA Laos is granted exclusive rights to operate or grant memberships for the operation of ERA member broker offices in Laos. The Agreement is for an initial term of 25 years commencing from 21 March 2023, and may be renewed for a further 25 years subject to the fulfilment of certain conditions as set out in the Agreement.

The Group possesses the exclusive ERA regional master franchise rights to 17 countries and territories in Asia Pacific. With the addition of Laos, the Group now has a network of more than 21,900 agents in 647 offices across 11 countries and territories.

“We are delighted with our foray into Laos through a franchise model as it deepens our foothold in the Indochina Peninsular and advances our strategic regional growth plans with a capital-efficient approach. We have every confidence in Ms Manisone Saysompheng, CEO, ERA Laos, and her capable and experienced team as they endeavour to deliver quality growth in the post-pandemic era,” said Mr Marcus Chu, CEO, APAC Realty Limited.

The Laos real estate market is in the early stages of development and its potential is underpinned by strong foreign investment, especially from its largest investor, China which invested US$2.5 billion in 20211. The recently launched US$6 billion China-Laos Railway which connects Kunming with Vientiane continues to stimulate economic activity and influence the valuations of real estate.

“With the government amending its laws to permit foreign ownership of condominiums, market watchers believe Laos will be the next property hotspot in the Indochina Peninsular. Our entry into Laos is timely as there are very few real estate brokerage agencies in the country. Backed by over 40 years of success in Singapore and the region and an established brand name, we are well positioned to help elevate the standards and professionalism of agents in Laos,” continued Mr Chu.

“We are enthused to be a part of the ERA family and the agency of choice around the world. As ERA Laos, we are able to leverage the Group’s proven agile business model and established training programmes which continue to be underpinned by ERA’s leadership in technology, innovation and customer engagement. Backed by a strong brand name and an enlarged Asia Pacific network, our agents will be able to deliver bespoke advice and quality service to homeowners and buyers,” said Ms Manisone Saysompheng, CEO, ERA Laos.

ERA Laos is based in the city of Vientiane, the capital and largest city of Laos with a population of close to 975,000 Laotians. The agency has a headcount of 15 salespersons as at 21 March 2023 and has set an aggressive target to grow its sales force to 300 salespersons by end-2025.

With the latest foray into Laos, APAC Realty now has a strong presence in four of five countries in the Indochina Peninsular: Thailand, Vietnam, Cambodia and Laos. These economies are expected to register growth of between 3.10% to 6.20% in 2023, driven by strong domestic consumption underpinned by a relatively young population of 194.2 million.

Singapore’s leading international real estate agency, ERA Realty Network Pte Ltd (“ERA”), successfully held its annual Asia Pacific Business Conference (APBC) at the iconic Marina Bay Sands. It was attended by over 2,000 representatives across 11 countries where ERA operates and graced by guest-of-honour, Mr Desmond Lee, Minister for National Development & Minister-in-charge of Social Services Integration.

The APBC is a prominent regional industry conference that celebrates and recognises the salesforce’s remarkable accomplishments of the preceding year. Mr Marcus Chu, CEO of APAC Realty and ERA Asia Pacific, announced ERA’s theme for the forthcoming year – “Enrich Lives, Embrace Tech”. This theme represents ERA’s commitment to fostering an environment that nurtures growth for its agents and employees, as well as a culture of innovation and investment in cutting-edge PropTech tools, to continually elevate its service standards, to serve clients more efficiently than ever before.

“Our vision in ERA is to be Asia Pacific’s leading real estate agency providing evolutionary solutions to customers. To achieve this, we constantly strive to stay ahead of the curve by embracing change and setting a new industry standard through continuous innovation. For us, innovation means more than just having a good idea – it means investing in the right strategies that truly enhance the lives of our agents, clients and communities. Our unwavering commitment to elevating customer experience is reflected in this year’s theme, and we remain dedicated to pursuing excellence in all facets of our business.” said Marcus Chu, CEO of APAC Realty and ERA Asia Pacific.

Enriching Lives Through Salesforce Expansion and Support

ERA leads the real estate pack in Asia Pacific, boasting 22,000 agents working across more than 640 offices in 11 countries.

Today, ERA announced its expansion in the region, with Laos becoming the newest member of the ERA family. ERA attributes its success to its commitment to cultivating a culture of growth, integrity, and excellence, and this has been reflected in the company’s recent achievement of securing a net increase of 277 real estate salespersons in Q1 2023, the highest number in Singapore. This success is testament to the fact that ERA remains the go-to agency for aspiring real estate salespersons.

In addition to nurturing its salesforce, ERA has also pledged to invest S$5 million in a Renewal Support Plan to cover annual license registration and renewal fees for all ERA agents in Singapore over the next two years.

Enriching the Lives of Communities Through ESG by ERA

Dedicated to supporting its salesforce and giving back to the community through its Environmental, Social and Governance (ESG) efforts, ESG by ERA was launched in November 2021 and is chaired by Doris Ong, Deputy CEO of APAC Realty and ERA Singapore. ESG by ERA has raised over S$470,000 to date, with contributions from ERA senior management and advisor leaders.

These funds have been used to support green practices and initiatives in environmental education and community activities. ERA has donated to the Hong Kah North Environmental Sustainability Fund, supporting the Singapore Green Plan 2030, and to the North West Community Development Council (CDC), helping to nurture a green mindset among residents.

ESG by ERA has also supported sustainable consumption practices through various community activities. As part of Zero Waste SG’s Bring Your Own Bag (BYOB) campaign, ERA donated 300 reusable bags to encourage reduced use of disposable bags in grocery stores. In collaboration with North West CDC, ERA also donated 57 desktop computers to support vulnerable residents with digital readiness and over 1,000 preloved books to a green community library for the less privileged. These actions demonstrate ERA’s commitment to its salesforce and to the community.

“ERA is more than a real estate agency, we are committed to driving positive change through our leadership in Environmental, Social, and Governance (ESG) practices. Our dedication to sustainability runs deep, and we actively encourage individuals and businesses to make eco-friendly choices that reduce our collective impact on the environment. In fact, we just set a new national record in the Singapore Book of Records today by achieving the Most Number of Online Sustainability Pledges made in a Day – over 1,9001 pledges were made to the Green Nation Pledge. This accomplishment underscores our commitment to promoting sustainable practices as we continue to lead the way in the real estate industry and beyond,” said Doris Ong, Deputy CEO of APAC Realty and ERA Singapore.

Embracing Tech Advancements and Transformation with Modern Technology

In pursuing PropTech advancements, ERA announced Singapore as its main Tech Innovation Centre, with a pledge to invest S$5.2 million to scale up tech capabilities this year. The investment involves job creation in tech talent roles such as mobile developers, UI/UX designers, DevOps and backend engineers, with the goal of doubling its tech team headcount to support the scale of tech enhancements in the pipeline.

ERA became the first in the industry to integrate AI solutions, including OpenAI Generative Pre-Trained Transformer 3 (GPT-3), into its proprietary SALES+ super app earlier this month. This enables agents to automate time-consuming tasks like copywriting, content generation, and translations, freeing up their time to serve clients more efficiently. The integration of GPT-3 into SALES+, represents a major leap toward unlocking the full potential of PropTech, resulting in over 30% increase in app usage since its launch, with the advanced feature of SALES+ being the most utilised feature for agents, especially when it comes to sending general queries and receiving automated responses.

Pushing forward speedily with new technology, ERA will transition to the popular ChatGPT platform before end-March 2023, to further improve automation capabilities, with plans to roll out the newly enhanced SALES+ across its 646 Asia Pacific offices located across 11 countries by 2025. This not only highlights ERA’s dedication to empowering its agents and staying abreast with the evolving market, it reinforces ERA’s commitment toward supporting the government’s real estate industry transformation map, which aims to transform the industry to be professional, productive and resilient through the digitalisation of processes by 2025. In staying aligned with our national vision, ERA will continue to strive in providing the best in service standards to its agents and clients.

ERA’s agility during the pandemic also proved its leadership in digital transformation. Apart from the SALES+ super app for agents, RealtyWatch, another proprietary mobile app customised for consumers was launched, featuring a 24/7 property transaction monitoring platform to give consumers transaction prices and property market information in real time. Therefore, ERA’s 2023 theme of “Enrich Lives, Embrace Tech” represents a dedication to innovation, a commitment to investing in tech, and elevating its service standards to the industry’s highest levels.

“As one of the market leaders spearheading the real estate industry, ERA is an important contributor and has been a role model for many others to follow. Your commitment to professionalism, innovation and customer satisfaction has enabled you to establish yourselves as a trusted and reliable partner in the industry. We look forward to your
continued partnership as we push the boundaries for the sector,” said Mr Desmond Lee, Minister for National Development & Minister-in-charge of Social Services Integration.

ERA Realty Network Pte Ltd (“ERA”) is proud to announce the integration of OpenAI Generative Pre-Trained Transformer 3 (GPT-3), into its proprietary SALES+ super app.

Leveraging on the powerful underpin of popular AI tool ChatGPT, this feature will revolutionise how agents manage their daily work, equipping them with automated features that save time on mundane administrative tasks, including copywriting, content generation and translations, allowing agents to focus on more challenging aspects of their job.

“Integrating OpenAI GPT-3 into our SALES+ app is a great step forward in providing our agents with the cutting-edge technology they need to stay ahead in the real estate market. This integration demonstrates our dedication to strategically invest in the most effective proptech solutions this year. By harnessing the power of AI, the effectiveness of our agents will be significantly improved, allowing them to focus on building relationships and providing valuable counsel to their clients. This will make them a valued and trusted real estate advisor who brings invaluable insight and guidance to their customers,” said Marcus Chu, CEO of APAC Realty and ERA Asia Pacific.

Launched in 2022, SALES+ was developed for ERA agents to improve sales efficiency through data automation and market intelligence for real time property analysis and quick marketing materials and reports. SALES+ includes five main pillars and features such as Suite, Analytics, Listings, Enterprise and Support, the integration of GPT-3 becomes the sixth pillar to the ERA’s SALES+ app, represented by the “+” symbol.

ERA agents can take advantage of AI-powered automation within the SALES+ app to access an array of support features. OpenAI GPT-3 in SALES+ comprises two sections – Guided Creation and Advanced – to streamline content creation and messaging.

Guided Creation is an efficient, user-friendly platform that simplifies the process of creating and managing content, as well as engaging with customers. Its two features, Content Management and Communication and Engagement, provide agents with the ability to generate necessary content quickly in the most optimal way. Content Management enables agents to better control how they communicate with customers.

Agents can determine the tone, length, and structure of their messages, as well as improve them for Search Engine Optimization (SEO) and summarizing them for key takeaways. Communication and Engagement helps generate and enhance agent support, from self-introductions to tenancy reminders, personalised festive greetings to open house and event invitations. It also offers agents the option to translate their messages into various languages and to suggest copy based on the platform type that the agent intends to post on.

Moreover, agents have access to an Advanced chat feature to interact with a chatbot for a wide range of AI-generated conversational responses. These features increase time efficiency and productivity, while engaging and connecting with clients.

“AI has ushered in a new era of automation and efficiency in the real estate industry. By integrating OpenAI GPT-3 into the SALES+ app, agents can take advantage of the latest tech tools to help them grow their business. I look forward to our agents unlocking the full potential of this enhancement that will enable them to reach their desired growth goals and improve the overall customer experience,” said Raymond Leong, Chief Technology Officer of ERA.

Left to Right Jack Chua, Executive Chairman of APAC Realty, Marcus Chu, CEO of APAC Realty and ERA Asia Pacific, Allan Tran, Deputy CEO of ERA Vietnam and Pham Thanh Tuan, CEO of ERA Vietnam

• Further drive growth and success of ERA Vietnam and Eurocapital and allowing APAC Realty to consolidate both companies in its financial statements
• Following APAC Realty’s initial investment in 2020, ERA Vietnam has experienced rapid growth to become a leading independent real estate brokerage with close to 3,900 salespersons as at 31 December 2022
• APAC Realty is well positioned to participate in the long-term growth of Vietnam’s real estate brokerage market and the Vietnamese economy as a whole, given its rapidly developing economy and favourable demographics
• The acquisition strengthens the “ERA” brand regionally and promotes multi-country collaboration across the Group’s business in the Southeast Asia

SINGAPORE, 9 January 2023 – APAC Realty Limited (“APAC Realty”, the “Company” or together with its subsidiaries, the “Group”), a leading real estate services provider which operates a market-leading real estate brokerage in Singapore under the ERA brand, announced the acquisition of 984,697 shares in ERA Vietnam Real Estate Joint Stock Company (“ERA Vietnam”) and 176,000 shares in Eurocapital Joint Stock Company (“Eurocapital”), representing 22% of the issued share capital of each company for S$4.9 million with an earn-out incentive of up to S$10.5 million[1].

As part of its regional expansion strategy, APAC Realty acquired an initial 38% stake in ERA Vietnam and Eurocapital in February 2020. Upon completion of the transaction, the Group will increase its shareholding in ERA Vietnam and Eurocapital to 60% each.

“The growth capital extended during our initial investment was the catalyst which sparked ERA Vietnam’s tremendous growth over the past two years[2] both in terms of revenue and agent headcount. Over this period, the agency’s dedicated and capable management team established the ERA Vietnam brand name in Vietnam’s nascent and thriving real estate market, and more than doubled the salesperson headcount to close to 3,900 salespersons as at 31 December 2022. With these positive results, we are confident that our second investment will support ERA Vietnam’s next phase of growth and allow us to realise greater value for APAC Realty shareholders over the long-term,” said Mr Marcus Chu, Chief Executive Officer of APAC Realty.

“Working closely with ERA Vietnam’s strong and committed management team, we will continue to play a vital role in meeting the needs of homeowners and property investors in Vietnam’s attractive real estate market. Our ability to secure marketing agency appointments for new home launches by local and international developers in Vietnam presents the Group with a sustainable engine of growth in the country and across the region. We intend to increase the flow of well-located quality residential properties to Singapore and our other markets, providing real estate investors with an opportunity to tap into one of the fastest growing countries in Southeast Asia.”

ERA Vietnam: A Top 10 Real Estate Agency in Vietnam

Founded in 2017, ERA Vietnam is based in Ho Chi Minh City. Under the leadership of Mr Pham Thanh Tuan, CEO, ERA Vietnam, the agency has grown its agent base tremendously from less than 100 salespersons at the time of its founding to close to 3,900 salespersons as at 31 December 2022.

“At ERA Vietnam, our salespersons embody the philosophy, values and ethics that have positioned ERA as the agency of choice around the world. With deep market knowledge and experience, we continue to provide bespoke quality advice and service excellence to homeowners and buyers, and elevate our reputation with local and international developers across the country. As a result of our efforts, ERA Vietnam is today ranked among the Top 10 real estate agencies in the country by the Vietnam Association of Realtors,” said Mr Pham.

ERA Vietnam’s revenue has increased from approximately VND74.3 billion (S$4.4 million) for the year ended 31 December 2020 to approximately VND117.3 billion (S$7.0 million) for the nine months ended 30 September 2022[3]. A primary contributor to the increase was ERA Vietnam’s ability to secure marketing agency appointments for new home projects by local and international developers. The agency secured 34 new home projects in 2021, positioning ERA Vietnam among the Top 5 brokerage agencies in South Vietnam. The agency secured marketing appointments for 30 new home projects in 2022.

For its 2023 pipeline, ERA Vietnam has already secured marketing mandates for 23 new home projects with a total of 6,460 units. This includes: The9 Stellars by Sonkim Land, Zeit River Thu Thiem by GS E&C, Cadia by Phat Dat, iD Junction by Tay Ho, and Grand Marina Saigon by Masterise.

Vietnam to remain one of the fastest growing economies in the region

Vietnam is the 15^th most populous country in the world[4] with a relatively youthful[5] population of 98.5 million[6]. The government seeks to transform the country into a developing nation with modern industry and upper-middle-income status by 2030, and elevate Vietnam to a developed, high-income socialist-oriented economy by 2045[7]. The country was the fastest growing economy in the region in 2022 with GDP growth of 8.0%, its fastest annual growth since 1997, driven by strong domestic retail sales and exports[8].

The government’s US$15 billion worth of fiscal stimulus and central bank’s monetary policy has boosted Vietnam’s competitiveness and positioned the country as an attractive destination for foreign investment amid trade disruptions from China’s lockdowns and the conflict in Eastern Europe[9]. In 9M 2022, Vietnam recorded realized foreign direct investment of US$15.43 billion, an increase of 16.3% from 9M 2021. Over this period, Singapore was the top investor, contributing to US$1.45 billion of newly licensed investment projects[10].

Favourable market conditions driving robust demand for quality real estate

The outlook for Vietnam’s real estate market remains positive underpinned by continued urbanisation, stable economic environment, low unemployment levels, and a growing middle-class population which is expected to reach 75 million by 2030[11].

In its bid to become a developed country with high income by 2045, Vietnam is planning for at least 5,000km of expressways by 2030[12], a 1,545km cross-country high-speed railway by 2045[13] and intra-city metro networks[14] to enhance connectivity and the quality of its railway and road infrastructure. This is expected to drive real estate development and enhance the value and rental yields of properties in these markets.

A case in point is Ho Chi Minh City (“HCMC”), Vietnam’s largest city with an estimated population of approximately 9 million residents[15]. The municipal government is planning to develop HCMC into a high-density city with financial, commercial, service, education and training, healthcare, cultural and research centers, catering to a population of approximately 14 million by 2040[16].

“The outlook for real estate agencies remains bright. Whilst there is an abundant supply of unsold units in HCMC, demand for well-located quality new homes by reputable local and international developers continues to be strong with home buyers and investors. Absorption of new homes projects across the city remained healthy at 52% in 9M 2022[17] and rental yields in popular areas such as Districts 1, 2, 7 and Binh Thanh ranged between 4.0% to 7.0% in 3Q 2022[18],” said Mr Pham.

Average pricing for new condominiums across the city increased 8.6% year-on-year to US$2,455 per sqm in 1H 2022. Mid-end condominiums rose 7.0% year-on-year to US$1,662 per sqm, whilst Ultra Luxury condominium transactions averaged US$14,966 per sqm, an increase of 1.9% year-on-year[19].

The municipal government continues to enhance connectivity across the city with plans for two new bridges to be built before 2030 to bring the total number of bridges in the city to four[20]. This will complement the existing Thu Thiem Tunnel which connects the downtown area with Thu Thiem Peninsular, and the city’s metro line 1 which is scheduled for completion in late 2023[21].

To further enhance connectivity, the government is constructing Long Thanh International Airport, located approximately 40km from the city centre. Upon completion in 2025, the airport will be the largest in Vietnam and have the capacity to serve over 100 million passengers annually. ERA Vietnam expects the government’s infrastructure developments to raise property values and rental rates for properties along the metro network and across the city.

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[1] Transaction aggregate consideration is up to S$15.4 million. Earn-outs of up to S$10.5 million were structured in order to incentivise the Sellers to achieve the performance targets set out in the SPAs and further the growth and success of ERA Vietnam and Eurocapital. Only S$4.9 million is payable upfront[2] Two-year period from 31 December 2020 to 31 December 2022[3] Based on an exchange rate of S$1.00: VND16,861, being the rate used in the SGX announcement

[4] https://www.statista.com/topics/5991/demographics-in-vietnam/#topicHeader__wrapper

[5] Median age of 32.5 years with less than 8% of total population above 65 years

[6] https://www.gso.gov.vn/en/data-and-statistics/2022/01/infographic-population-labour-and-employment-in-2021/

[7] “CO21016 | Vietnam’s 13th CPV Congress: New Leaders, New Vision 2045?”, S. Rajaratnam School of International Studies (RSIS), 29 January 2021

[8] https://www.reuters.com/markets/asia/vietnam-2022-gdp-growth-quickens-802-vs-258-expansion-2021-2022-12-29/

[9] “Vietnam sees 2022 growth beating goal as recovery powers on”, Bloomberg LLP, 29 June 2022

[10] https://www.gso.gov.vn/en/data-and-statistics/2022/10/disbursement-of-public-investment-capital-foreign-direct-investment-expecting-the-last-months-of-2022/

[11] “The new faces of the Vietnamese consumer”, McKinsey & Company, 7 December 2021

[12] “Infrastructure: Vietnam PM Chairs Second Session to Accelerate Major Transport Projects”, Vietnam News, 20 September 2022

[13] https://e.vnexpress.net/news/business/vietnam-considers-58-7-billion-high-speed-railway-4499603.html

[14] “Ho Chi Minh City Metro, Vietnam”, Rail Technology, 29 March 2021

[15] https://www.macrotrends.net/cities/22458/ho-chi-minh-city/population

[16] https://vietnamnet.vn/en/hcmcs-population-forecast-to-reach-13-14-million-by-2040-719545.html

[17] Vietnam Association of Realtors

[18] ERA Vietnam estimates

[19] CBRE Forum 2022

[20] https://ampe.vnexpress.net/news/news/bridge-between-saigon-downtown-and-thu-thiem-opens-to-traffic-4457030.html

[21] “HCMC to develop 10 residential areas along first metro line”, The Saigon Times, 8 September 2022

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The Straits Times | ERA launches Asia-Pacific HQ at former Toa Payoh Entertainment Centre

The academy will empower ERA’s 20,328 employees across APAC to augment their digital marketing and customer engagement strategies

SINGAPORE, 06 April 2022 – Metigy, the world’s leading AI-powered marketing solution for small businesses, today signed an agreement with ERA Realty Network Pte Ltd (“ERA Realty”) in Singapore to support ERA’s Digital Marketing Academy for employees and agents in Asia Pacific.

In a first-of-its-kind for the Singaporean property industry, Metigy will work with ERA to upskill its regional staff and agents with digital marketing competencies to better serve and engage their customers through the likes of social media and digital advertising. The partnership includes access to Metigy’s AI-powered marketing technology platform that will enable ERA’s staff and agents to build better insights-led outreach strategies, and with it, create campaigns that reach the right audience and efficiently track engagements.

Metigy’s customer success team will work closely with ERA to drive adoption rates through sign ups, promotions and training, while its content team will support ERA to provide education for creating social-media-ready content and tips for running successful advertising campaigns.

The partnership comes at a time when agents are taking to digital marketing for property listings and agent recruitment, making the importance of a strong digital marketing strategy even more important for agents to reach their audience. The trusted advisers can also use digital marketing to deliver their recruitment strategies.

Director of Singapore Strategic Partnerships at Metigy, Hemant Doshi says, “Digital transformation continues to be a driving force for businesses and at Metigy, we are committed to championing a growth mindset while also working to provide access to tools designed to make digital marketing easier for SMEs in Southeast Asia. We are excited to be partnering with the ERA team as we work together to shape our shared digital future and it’s great to be part of their forward-thinking approach to embedding AI-powered digital marketing across its business. We are already seeing an increase in the generation of tomorrow interacting more through technology with a recent YouGov study highlighting that consumers in Asia are likely to increase their social media interactions in the next 12 months, compared with those in Europe. ERA taking this next step to empower its people showcases the direction we are going in as a region and the importance of embracing digital technologies.”

Metigy CEO and cofounder, David Fairfull says this new partnership affirms its commitment to support local businesses in Singapore and beyond with their digital marketing strategies, “As a digital leader with an expanding footprint in the APAC region, we know the great opportunity that the region represents and we’re proud to support the ERA team in delivering its vision of embedding digital marketing skills at its core.”

Kim Lee Tan, Chief Marketing & Digital Officer, ERA Realty says digital marketing is the lynchpin of every company’s lead generation and brand visibility success, “We look to support our team mates, who are representing our company as brands. We are extremely pleased to partner with Metigy to enable our team mates content push and platform analysis via Metigy’s AI-powered platform. We believe this will enable our agents to take digital marketing to greater heights. We are truly pleased to be the first in the market to launch a digital marketing academy and this partnership with Metigy is an integral part of our strategy to empower our agents digitally and technologically.”

Marcus Chu, CEO of APAC Realty and ERA Asia Pacific says, “We are thrilled to further advance our digital enablement so that our trusted advisers can continue to chart sustained growth. The organisation’s ongoing digital transformation is one of the key reasons why our agents recorded outstanding performances in 2021, and have managed to pivot and remain resilient during the COVID-19 pandemic’s period of lockdowns and social distancing restrictions.”
Metigy’s partnership with ERA strengthens its commitment to support local and regional businesses in Singapore and beyond with core digital marketing strategies, having recently set up its presence in Singapore. ERA has a global presence with a worldwide footprint of more than 39,000 salespersons working out of 2,350 offices across 33 countries.

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MartechAsia | Metigy and ERA Realty tie up for digital marketing training

SINGAPORE, 9 March 2022 – ERA Realty Network (ERA Realty) is appointed exclusively to launch for sale, via Expression of Interest, a portfolio of 23 income-producing strata retail shops located in various prime locations of Singapore. The portfolio comprises two Housing and Development Board (HDB) shops located in Toa Payoh and Ang Mo Kio, and a collective 21 strata shops found in Far East Plaza, Sims Lim Square, Peninsula Plaza and People’s Park Complex. Potential buyers have the option to purchase the properties either individually or collectively as a portfolio.

HDB Shops

1. 1. BLK 190 TOA PAYOH LORONG 6 #01-562 SINGAPORE 310190

HDB shops located in Toa Payoh

The property consists of a retail shop located right in the heart of Toa Payoh Town Centre. The centre is located in the heart of Toa Payoh, where a comprehensive range of goods and services serve a population of about 102,000 residents in the estate. Prominent landmarks here include the HDB HUB, which consists of an office tower and retail podium with direct access to both the Toa Payoh MRT station and bus interchange. The Blk 190 property has a floor area of about 1,033 sq ft and a 79-year lease that started in July 1992. It is currently subdivided into two shop lots and leased to two different tenants. Being located right in front of the popular Food Alley, it enjoys excellent visibility and constant flow of retail foot traffic.

1. 1. BLK 710A ANG MO KIO AVE 8 #01-2625 SINGAPORE 561710

Ang Mo Kio available for sale

The property consists of a standalone shop unit within a two-storey commercial centre located in Ang Mo Kio Central. This HDB shop has a floor area of about 3,574 sq ft and an 86-year lease that started in July 1993. The two-storey commercial centre is occupied by major financial companies such as Maybank and Phillip Investor Centre. The property enjoys prominent main road frontage and is a five-minute walk from Ang Mo Kio Hub and Ang Mo Kio MRT station. Being in the heart of Ang Mo Kio where the total resident population is about 155,000, the property enjoys a large and increasing retail catchment.

“With about 80% of the residential population living in HDB estates and towns, the HDB shop is a familiar and essential part of everyone’s life and forms the backbone of Singapore’s retail scene. HDB shops located in mature HDB towns are extremely popular and hard to come by. They enjoy capital and rental appreciation during times of economic growth and have proven to be a defensive asset during weak and uncertain economic times due to the essential goods and services that they provide. All the units enjoy prominent frontages and allow buyers to explore further subdivision or change of use, subject to authorities’ approval,” said Donald Goh, Director, Capital Markets and Investment Sales, ERA Realty, who is handling the sales of the properties.

“These 2 shops are fully tenanted with an attractive weighted yield of more than 4% and we expect keen interest from family offices, private equity funds, private investors and high-net-worth individuals (HNWIs) who are looking for immediate rental income with potential for capital appreciation in the mid-to-long term,” added Donald.

Shopping Centre Shops

1. 1. 11 NORTH BRIDGE ROAD #01-28/28A/29/38/44/45A/45B PENINSULA PLAZA SINGAPORE 179098

The property comprises six ground floor retail shop units located in Peninsula Plaza, an iconic office and retail development, which is within walking distance to Raffles City and City Hall MRT station. The immediate location has a wide array of popular retail, F&B and tourist destinations. With a total strata area of about 2,723 sq ft, the property enjoys a tenure of 999-year. The shop units enjoy prominent frontage facing North Bridge Road and Coleman Street. The vicinity has undergone major rejuvenation with the completion of Funan, Capitol Piazza, The Capitol Kempinski Hotel and Capitol Theatre. This has brought a significant amount of pedestrian foot traffic back to the mall.

1. 1. 1 ROCHOR CANAL ROAD #05-36/53/54/61/62/63/64/65/72/73/74 SIM LIM SQUARE SINGAPORE 188504

The property comprises 11 strata retail shops, all located on the fifth floor of Sim Lim Square, popularly known as an IT electronics mall. Located at the junction of Bencoolen Street and Rochor Canal Road, the IT mall is easily accessible by main arterial roads and is within walking distance to Rochor MRT station. The properties have a 99-year lease from April 1983 and a total strata floor area spanning about 5,447 sq ft. The shop units all face the main atrium with immediate access from the lifts and escalators.

1. 1. 14 SCOTTS ROAD #02-40/42 FAR EAST PLAZA SINGAPORE 228213

The two freehold strata retail units located at the second floor of Far East Plaza have a total floor area of 753 sq ft. The shops are located strategically at a corner right in front of the main entrance of the well-known shopping centre. Far East Plaza consists of a five-storey retail mall with serviced apartments and was completed in 1982. It is popular over the years for being a fashion incubator and it also houses many retail, lifestyle and concept shops as well as F&B establishments. It is located along the world-renowned Orchard Road and Scotts Road shopping belt that is highly popular with locals and tourists.

1. 1. 1 PARK ROAD #01-32/33 PEOPLE’S PARK COMPLEX SINGAPORE 059108

Located on the ground floor of People’s Park Complex are two adjoining retail shops with a total strata floor area of about 818 sq ft. People’s Park Complex is an iconic commercial and residential development completed in the 70s. It is located right in the heart of Chinatown and is popular with locals and tourists for its wide array of retail shops offering lifestyle, travel, F&B and health services. In terms of accessibility, the shops are located just a few minutes’ walk from Chinatown MRT station.

“With the recent property cooling measures announced in December 2021, we have witnessed a shift in demand for strategically located commercial properties that promise capital appreciation potential. Based on recent reports, we anticipate that the retail market has bottomed out of the pandemic and is on an upswing. Last year, retail sales in Singapore grew 11.1% after three straight years of decline. Hence, it is the opportune time for discerning investors to put their money into commercial properties. We foresee that this well-diversified and investment-grade portfolio will provide a compelling and attractive opportunity for real estate funds, family offices and HNWIs to ride that recovery. Furthermore, the investment quantum of about $80 million for the entire portfolio is one that is palatable to the market. With the portfolio 100% tenanted, buyers can mitigate the short-term volatility while looking forward to future capital appreciation,” said Steven Tan, Managing Director, Capital Markets and Investment Sales, ERA Realty.

ERA Realty is the exclusive marketing agent for the Expression of Sale exercise, which closes on 21 April 2022, Thursday, at 3pm.

Revenue up 87% to S$739.8 million
Net profit up 116% to S$35.3 million

• Board declares a final dividend of 4.0 cents per share. Including the interim dividend of 3.5 cents per share, the aggregate dividend for FY2021 is 7.5 cents per share, representing a dividend payout ratio of 75.5% and a total dividend yield of 11.5% (excluding the special dividend of 3.0 cents per share paid out in September 2021);
• APAC Realty continues to be well-positioned with a strong balance sheet and healthy cash balance of S$53.7 million as at 31 December 2021

“We are delighted with the impressive performance of dedicated ERA Trusted Agents whose contributions have realised a record year for APAC Realty. Our on-going digital transformation has propelled ERA into the forefront of the digital real estate industry, equipping ERA Trusted Agents with proprietary cutting-edge applications and data analytics to better serve today’s increasingly sophisticated and digitally discerning customer,” said Jack Chua, Executive Chairman of APAC Realty Limited.

Financial Highlights

* Based on 355,197,700 weighted average number of shares as at 31 December 2021 and 31 December 2020.

SINGAPORE, 22 February 2021 – APAC Realty Limited (“APAC Realty”, the “Company” or together with its subsidiaries, the “Group”), a leading real estate services provider which operates a market-leading real estate brokerage in Singapore under the ERA brand, announced record revenue of S$739.8 million for the year ended 31 December 2021 (“FY2021”), a 87.2% increase compared to S$395.1 million for the year ended 31 December 2020 (“FY2020”).

Total FY2021 revenue increased 87.2% or S$344.7 million primarily due to a 68.0% increase in brokerage income from resale and rental of properties to S$449.1 million, and a 141.4% increase in brokerage income from new home sales to S$281.0 million.
As a result, the Group closed FY2021 with a net profit of S$35.3 million, an increase of 116.0% or S$19.0 million from S$16.3 million in FY2020.

Delivered a record annual dividend in FY2021

The Board of Directors has declared a final dividend of 4.0 Singapore cents per share to reward shareholders for their trust and continued support.

Together with the interim dividend of 3.5 Singapore cents per share distributed in September 2021, the aggregate dividend of 7.5 cents represents a dividend yield of 11.5% based on the closing price of S$0.65 per share on 21 February 2022. FY2021 total dividend represents a payout of S$26.6 million and a payout ratio of 75.5%.

This is in-line with our dividend policy of distributing between 50% to 80% of our profits as dividends on a semi-annual basis. Our ability to distribute dividends is underpinned by APAC Realty’s strong cash flow generation ability and robust balance sheet.

Leadership across all market segments

In FY2021, Singapore’s developers sold 15,146 private residential units (including ECs), an increase of 38.4% from 10,940 units in FY2020. During this period, ERA was appointed sole or joint marketing agent to 23 projects with a total of 8,428 units. Based on market data, the Group’s estimated market share of the new homes segment was 33.7% in FY2021, up from 28.9% in FY2020.

As a preferred marketing agency for established developers in Singapore, the Group has secured marketing agent mandates for 33 quality residential projects as of 21 February 2022. These market agent mandates comprise close to 7,200 new home units launched and to be launched in FY2022.

During the year, Singapore’s private residential resale market recorded sales of 20,530 units, 87.9% higher than 10,927 units transacted in FY2020. The HDB resale market remained relatively healthy with 31,017 transactions completed in FY2021, an increase of 25.3% from 24,748 units sold in FY2020. Based on market data, ERA ended the year with a commendable 42.2% share of the combined private residential and HDB resale market which grew 44.5% in FY2021.

Singapore’s leasing market remained healthy in FY2021 as 142,147 private and HDB units were leased, an increase of 9.9% from 129,301 units in FY2020. Based on market data, ERA maintained its market position with 23.7% share of the FY2021 market, compared to 23.8% in FY2020.

3-year Roadmap to Deliver Sustained Growth

“Over the past few years, we have taken bold but measured steps to build a strong foundation to enhance our resilience and ability to deliver quality growth over the long-term. A key component of our strategy is our digitalisation and IT transformation roadmap which continues to evolve the way we interact and engage customers, enhancing the way our trusted agents deliver service excellence and quality advice. For our three-year roadmap, we have established several objectives and initiatives which will see us strengthening our core and competitive edge, and augment our market leadership,” said Mr Marcus Chu, CEO of APAC Realty Limited.

As at 1 January 2022, ERA had 8,144 trusted agents, an increase of 4.8% from 7,771 trusted agents in the year-ago period. The Group continued to record productivity improvements with the average income per ERA trusted advisor up 72% year-on-year to S$90,000 in FY2021, from S$52,000 in FY2020 and S$53,000 in FY2019. In aggregate, ERA trusted agents delivered 60,602 property transactions in FY2021, compared to 49,260 and 48,474 property transactions in FY2020 and FY2019 respectively.

Commenting on the Group’s strategy to build on its core and strengthen its competitive edge, Mr Chu said, “We continue to build a robust support ecosystem to empower our trusted agents with the latest proptech, training, and proprietary super apps such as RealtyWatch, allowing each to deliver bespoke knowledge-based advice and best-in-class service to customers. This has enhanced our reputation as an agency of choice, and increased our ability to attract new and retain existing talent.”

“We continue to take a long-term approach to our regional expansion strategy. Over the past two years, our investments into Indonesia, Thailand, Vietnam and Malaysia, have provided us with strong geographic diversification and access to a population of more than 470 million or 71% of the total population in ASEAN. As the economies and real estate markets of these countries recover and transition into a post-pandemic environment, we expect to realise growth and synergies on the ground underpinned by the established ERA brand name, strong reputation and quality sales teams,” added Mr Chu.

Update on Singapore

The Singapore economy grew 7.6% in FY2021 and is expected to grow 3%-5% in FY2022. With the robust growth and healthy real estate market, the Singapore government announced a set of stringent cooling measures with effect from 16 December 2021. Under the new policies, the Additional Buyer’s Stamp Duty (“ABSD”) was raised by 5ppts for the second property for citizens and permanent residents, and by 10ppts for any residential property for foreigners and entities. Furthermore, the Total Debt Servicing Ratio (“TDSR”) threshold was tightened by 5ppts from 60% to 55%, and the HDB housing loan LTV decreased by 5ppts to 85%.

“The government’s property cooling measures in December 2021 aim to promote a stable and sustainable property market. While there is a knee jerk reaction on market momentum, we believe that there will be positive sustainable growth over the longer term. We expect the market to readjust to demand from genuine home-buyers,” said Mr Chu.

New Business Unit

In February 2022, ERA announced the set-up of a new business unit – Capital Markets & Investment Sales (“CMIS”), to deal with sizeable assets of high-net-worth individuals, family offices, developers, institutional investors and real estate investment trusts. With an aggregate real estate experience of 100 years of experience and a collective transactional experience amounting to more than S$4.7 billion, the CMIS team will focus on assets, including commercial and industrial buildings, strata offices and retail spaces, retail malls, collective sales, land for redevelopment, shophouses and Good Class Bungalows.

Update on the Region

In Indonesia, ERA Indonesia was successfully listed on the Indonesian Stock Exchange (“IDX”) on 30 June 2021. ERA Indonesia is the first and only listed real estate agency listed on the IDX. In its most recent update, Bank Indonesia expects Indonesia to record growth of 4.7%-5.5% in FY2022, up from 3.2%-4.0% growth in FY2021.

The Thai economy grew 1.6% in FY2021 and is expected to register positive growth of 3.5-4.5% in FY2022. As the economy remained closed to foreign visitors due to the pandemic, the property market continued to witness a slowdown in FY2021. We continue to position ERA Thailand for a rebound as the economy reopens to foreign visitors and investors.

In FY2021, ERA Vietnam added more than 1,200 sales agents and ended the year with a headcount of close to 2,800 sales agents. The team has built strong relationships with developers in Vietnam, allowing ERA Vietnam to establish a strong market position, especially in project marketing. In January 2022, ERA Vietnam expanded its operations with the signing of ERA Sol and ERA Capital as its first franchisees. With this, ERA has become the first international real estate brokerage brand to develop franchise services in Vietnam. Tapping on ERA’s technological platforms, worldwide quality training systems, and a portfolio of more than 40 projects in Vietnam, this franchise expansion will set ERA Vietnam in good stead to become a leading player in Vietnam. The General Statistics Office of Vietnam expects the country to grow 2.58% in FY2021, and 6.0%-6.5% in FY2022.

The newest member of APAC Realty’s network, ERA Malaysia, reached its first-year milestone in September 2021. ERA Malaysia made strong headway during the year, increasing its salesforce to 685 as of 31 December 2021. Bank Negara Malaysia reported GDP growth of 3.1% in FY2021 and has projected growth of 5.5%-6.5% in FY2022.

With a strong balance sheet and robust cashflows, the Group remains cautiously optimistic about its prospects in FY2022.

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APAC产业兼新加坡ERA总裁朱泳强：新降温措施后房地产市场仍获支撑

总裁朱泳强接受《联合早报》专访时说，新降温措施主要针对拥有超过一间房子的屋主，对公司生意的影响不大，因为在公司负责的交易当中，有不少是不受降温措施影响的首次购房者或自住型的祖屋提升者。

In an exclusive interview with Lianhe Zaobao, CEO Marcus Chu said that the new cooling measures are mainly aimed at homeowners who own more than one house and have little impact on the company’s business because most of the transactions the company handled were not affected by the cooling measures as they were first-time homebuyers or upgraders.

To read further online:

https://www.zaobao.com.sg/finance/singapore/story20220214-1242463