A new initiative has been launched by Prop Nex and JLL in order to provide better assistance to developers that are selling high end homes in Singapore.
This initiative occurs one year following the fact that JLL Singapore was able to acquire 20 percent of the stake in the project marketing arm of Prop Nex International during the month of August in the year of 2014. And it is stated that 50 to 60 of the JLL’s representatives went on to work as employees of Prop Nex.
Since that time, both of these companies have augmented the spectrum of their working partnership in correlation to auction and project marketing regarding commercial developments.
New Sales for Propnex
According to Chris Fossick who is the managing director for Singapore and South-east Asia for the JLL company, developers of luxury properties within Singapore require increased assistance than previously in order to move their commodities due to the fact that property cooling measures have inflicted a decrease in demand from foreigners and investors.
It has been noted by Ismail Gafoor who is the CEO of Prop Nex, that there will soon be an urgent need for some of these developers to clear their stock in order to comply with the requirement of the regulations of the Qualifying Certificate (QC) along with the remission for additional buyer’s stamp duty (ABSD).
The QC regulations state that most developers here are required to pay extension fees regarding condo units that have not sold in correlation to the two years from the point of project completion. Since the month of December of the year of 2011, there has also been the requirement for developers to develop all residential sites that are in their possession and to complete the sales of all units within the time frame of five years in order to set forth the qualification of the remission of the ABSD on the cost of land.
Propnex to post record Sales Commisions
According to Mr. Ismail, since they need a greater outreach in order to be able to dispose of their properties, many developers will be facing their biggest challenge by the end of the year for next year. A trained work force is necessary for the marketing of their projects if these developers intend to cut prices and relaunch their projects.
A rigorous process was undertaken by both JLL and Prop Nex in order to find sales people who met their strict criteria of being able to have a good track record, communication skills, ethics, product knowledge and market knowledge. At least S$2 million worth of property sales in the last two years must have been closed orthere must have been the attainment of at least one transaction for a high net worth individual (HNWI) by the agents.
The short listed applicants then were put through mandatory training regarding project marketing and needed to pass an interview prior to being able to receive certification under the Luxury Real Estate brand. On Tuesday at a ceremony, they received their certificates.
The certificate acts as an endorsement by JLL and Prop Nex that these 200 next agents are ready now to set to the task of marketing high end properties of developers, as stated by Nancy Hawkes who was among them, who serves as the senior associate district director of Prop Nex, having transferred over from JLL in the later part of the year of 2014.
There is a lot of potential in the luxury market. Therefore, this certification is deemed to be timely. These are the perceptions of Nizam Gafoor who serves in the position of associate district director at Prop Nex where he oversees a team of 180 agents and has been dealing with HNWI clients.
JLL has put out the estimation that among 1.3 million homes in Singapore, the luxury home percentile is one percent of the total number. These properties are primarily situated near the location of Orchard Road, Marina Bay and Sentosa, with a wide range of pricing from S$5 million to S$50 million.
Looking at new initiave
In spite of the fact of the small market segment, Mr. Fossick stated that there does indeed exist a need to aid luxury developers. Luxury homes are under valued in the context of the other major markets and in relation to the wealth of Singapore. Take into consideration for example the fact that Hong Kong’s high end residential market, in light of enduring similar strong measures by the government, is trading at 165 percent in correlation to the equivalent of Singapore, while the fact remains that both London and New York are reported to be 100 percent higher than Singapore.
There were transactions for as many as seven major prime residential block deals that were worth S$900 million last year. Thus it shows that the market had found the bottom, or close to it, as suggested by Mr. Fossick.
While it is true that Prop Nex does offer a large spectrum of sales and leasing services for HDB flats and condominiums, Mr. Ismail noted that it had less experience with high end luxury sales.
At Le Novel Ardmore a Prop Nex agent had the success of being able to broker Singapore’s most costly penthouse that made for a S$51 million deal last year. Also, it is to be noted that agents of Prop Nex were able to sell penthouses at St. Regis Residences for S$12.2 million and Marina Bay Suites for S$18.98 million, while other agents were able to accomplish brokering Good Class Bungalows (GCBs) and luxury homes at Sentosa.