Post Reply
81-100 of 406
Developers have now realised their mistakes in offering comm from 4 to 8% to agencies agents on new launches, this has now dropped to 0.8% tp 2% depemdemt on how fast they want to sell off the units and locations
In fact there is no longer hurry to sell, pricing it right is important to get customers walk in, customers can get further discount on the units if purchased directly withD DEVELOPERS instead of engaging with the showroom agents. AGENTS been making lots of money the last 7 years earning between 4 to 10% commission, and over 500k annual commission has been very common, the extremes earn more than 1 to1.8million especially the leaders of a pack of moret than 500 agents. ITS ALL OVER FOR AGENTS AND AGENCIES, boutique agencies are smiling quietly
Stocks wise head for the airlines, sia, sats, starhuh, hph trust, technologies eg creative (heard soon will be bought over), green energy Keppel, Frasers going privatise soon, medical lke Thomson soon will make shareholders very happy.
In fact there is no longer hurry to sell, pricing it right is important to get customers walk in, customers can get further discount on the units if purchased directly withD DEVELOPERS instead of engaging with the showroom agents. AGENTS been making lots of money the last 7 years earning between 4 to 10% commission, and over 500k annual commission has been very common, the extremes earn more than 1 to1.8million especially the leaders of a pack of moret than 500 agents. ITS ALL OVER FOR AGENTS AND AGENCIES, boutique agencies are smiling quietly
Stocks wise head for the airlines, sia, sats, starhuh, hph trust, technologies eg creative (heard soon will be bought over), green energy Keppel, Frasers going privatise soon, medical lke Thomson soon will make shareholders very happy.
It seems to me the main revenue drop in the last few quarters, that come from first home sales, reflects more just the pipeline of new home developments (which recently happened to be low) rather than market demand. Basically new homes sell if available.
Everyone can see the pipeline - it' s pretty strong going forward. Investors like Morgan Stanley Private Equity are able to profit by taking a longer term view - that' s why they are invested.
Everyone can see the pipeline - it' s pretty strong going forward. Investors like Morgan Stanley Private Equity are able to profit by taking a longer term view - that' s why they are invested.
Interesting intel, thanks for sharing your views, all very valid. Just observing on the sidelines and not quite sure where those 10k visitors come from! All these rich people around in Singapore...
honesty ( Date: 03-Jul-2023 14:28) Posted:
|
without prejudice, be careful, heard agents are trading amongst themselves to entice, many are hoping to sell knowing that agencies do not own any assets except freelance agents who are prepared to leave or jump ship since there is literally zero foreign buyers albeit only handful PRs and locals who have to sell their hdb homes in order not to penalised on ABSD and hdb volume is kicking in from late 2024 which will cause prices to drop easily 20% and in 2025 30% and that is where election also kicks in
trading volume is so low not even one per cent of sia/seatrium etc.
DYODD
trading volume is so low not even one per cent of sia/seatrium etc.
DYODD
https://www.edgeprop.sg/property-news/grand-dunman%E2%80%99s-opening-weekend-preview-attracts-10000-visitors
Strong showing for recent property launches continues to bode well for players like ERA and Propnex?
Strong showing for recent property launches continues to bode well for players like ERA and Propnex?
APAC might be in another acquisition,
Or maybe a potential buyer might be interested to buy over Apac?
Just my thoughts.
Or maybe a potential buyer might be interested to buy over Apac?
Just my thoughts.
as far as i know, agencies will soon be a thing of the past, The Reserve Residences by FEO, pays only 1.8% commission for 2 bdms and below, 2.1% for 3bdrms, all dropping from the past of 3 to 8 %
timely to avoid since many direct buyers are calling other developers and FEO which also sells One Holland Village directly to buyers and buyers can request for discount.
DYODD , boutique agencies are now giving these public listed agencies a run of their money by maneuvring with developers even though they are not officially appointed
timely to avoid since many direct buyers are calling other developers and FEO which also sells One Holland Village directly to buyers and buyers can request for discount.
DYODD , boutique agencies are now giving these public listed agencies a run of their money by maneuvring with developers even though they are not officially appointed
Leenyah ( Date: 15-May-2023 14:03) Posted:
|
67% drop in nett profit.
Question is can investors still expect high dividends of 8 to 10%, given in the past ?
Question is can investors still expect high dividends of 8 to 10%, given in the past ?
Apac Realty Q1 net profit slides 67% to S$3 million on lower transaction volume
REAL estate services provider Apac Realty : CLN 0% posted a 67 per cent fall in net profit to S$3 million for the first quarter ended Mar 31, from S$9.1 million the year before.
Revenue for the quarter fell 29 per cent to S$121.4 million, from S$171.1 million in the corresponding year-ago period, the mainboard-listed company said in a business update on Friday (May 12). This was due to a decrease in transaction volume of residential properties in the new homes segment, as new project launches were limited in the last six months
Apac Realty&rsquo s real estate brokerage services are operated by ERA Realty Network, under the ERA franchise.
By segment, new homes brokerage revenue declined 49 per cent on the year to S$39.4 million, from S$77.2 million the year before.
Meanwhile, resale and rental brokerage revenue declined 12.7 per cent to S$80.3 million, from S$92 million previously.
So far, Apac Realty has launched seven residential projects, with another 20 in the pipeline for 2023.
The company cited the slowdown in global economic activity, possible turmoil in the overseas banking sector, a high interest rate environment, and the recent property cooling measures as concerns for 2023.
from UOB Kay Hian for reference only:
APAC Realty (APAC SP)
Trading buy range: S$0.625-0.630
Last price: S$0.630
Target price: S$0.680
Protective stop: S$0.610
The price managed to stay above the cloud,
keeping the uptrend intact. There is a bullish
conversion and base lines crossover that
hints at potential upside ahead. The MACD is
bullish and is rising. These could increase
chances of the stock price moving higher.
We see increasing odds of stock price testing
S$0.68. Stops could be placed at S$0.61.
APAC Realty (APAC SP)
Trading buy range: S$0.625-0.630
Last price: S$0.630
Target price: S$0.680
Protective stop: S$0.610
The price managed to stay above the cloud,
keeping the uptrend intact. There is a bullish
conversion and base lines crossover that
hints at potential upside ahead. The MACD is
bullish and is rising. These could increase
chances of the stock price moving higher.
We see increasing odds of stock price testing
S$0.68. Stops could be placed at S$0.61.
Apac Realty sees 25% decline in FY2022 earnings to $26.6 mil
Apac Realty CLN 0.00% announced that its FY2022 ended Dec 31, 2022 earnings has declined by 25% y-o-y to $26.6 million from $35.4 million a year ago.
This is as total revenue dropped by 4.7% to $705.0 million from $740.0 million in the same period last year.
Revenue from real estate brokerage fees and related services decreased by approximately 4.8% to $700.4 million from $735.4 million in FY2021, following a decrease in property transactions completed during the year.
The decrease in brokerage income is due to the following a decrease in resale and rental of properties of 7.1% y-o-y to $417.0 million and decrease in new home sales of 1.0% y-o-y to $278.3 million.
Other revenue increased by approximately 6.0% to $4.6 million, mainly due to the gain on disposal of associate during the year.
For the year 2022, the group notes that there was a decrease in the overall transaction volume in the private new and resale residential markets, and HDB resale market following the cooling measures rolled out by the authorities in December 2021.
The recent Urban Redevelopment Authority (URA) data showed that prices of private residential property grew 0.4% in 4Q2022 and data from HDB indicated that overall prices for HDB has increased by 2.3% in the same period as well.
During 2022, developers sold 8,578 private residential units (including ECs), a decrease of 43.4% from 15,146 units sold in 2021. The private residential resale market recorded sales of 14,791 units, a decrease of 28.0% from 20,530 units sold in 2021. The HDB resale market reported a decline of 10.1% to 27,896 units in 2022 from 31,017 units in 2021.
The vacancy rate of completed private residential units has decreased from 6.0% as at Dec 31, 2021 to 5.5% as at Dec 31, 2022.
Apart from the 16,961 unsold units (including ECs) with planning approval as at Dec 31, 2022, there is a potential supply of 9,300 units (including ECs) from Government Land Sales (GLS) sites that have not been granted planning approval yet.
Cash and cash equivalents at the end of December 2022 stood at $49.3 million.
For the FY2022 period, the board has proposed a final dividend of 2.75 cents per share, a decline from the 4.0 cents per share dished out in the same period last year.
&ldquo In the face of geo-political challenges, rising inflation and a fresh round of cooling measures introduced in September 2022, Singapore residential property market remained relatively robust in FY2022. Whilst the September 2022 cooling measures weighed on transaction volumes in 2H2022, home prices remained buoyant. This was largely driven by strong demand from local home buyers and interest from foreign investors amidst a backdrop of limited supply,&rdquo says Marcus Chu, CEO of Apac Realty.
Adding on, Chu notes that the group made strong headway in its regional growth expansion strategy in January by increasing its interest in ERA Vietnam to 60%. &ldquo We are now better positioned to participate in the long-term growth of Vietnam&rsquo s residential property market and one of the fastest growing economies in the region. We are working on realising synergies and opportunities with ERA Vietnam for the group, which will accrete value for our shareholders over the long-term,&rdquo adds Chu.
Moving forward, the group will continue to focus on its regional presence in Asean and has acquired controlling stakes in ERA Indonesia and ERA Vietnam, where the group expects to be more involved going forward.
P/E = 6.6 not bad
TP at 0.69 otherwise long term holding for dividends
TP at 0.69 otherwise long term holding for dividends
There is bullish crossover in Stochastic oscillator and RSI(14) stands around 57.
APAC Realty raising stakes in ERA Vietnam, Eurocapital to 60% for $4.9 mil
REAL estate services provider Apac Realty is acquiring an additional 22 per cent stake in ERA Vietnam and Eurocapital as it seeks to grow its business in Vietnam.
The move will take its shareholding in each of the companies to 60 per cent.
The group, which operates the ERA real estate brokerage business in Singapore, said on Monday (Jan 9) that it will acquire the shares in the companies for S$4.9 million, subject to additional earn-out payments of up to S$10.5 million.
APAC Realty acquired its initial 38 per cent stake in ERA Vietnam and Eurocapital in Feb 2020 for a total consideration of S$1.5 million. Eurocapital is the sub-franchisor of the ERA brand to ERA Vietnam.
Marcus Chu, chief executive officer (CEO) of Apac Realty, expressed confidence that the company&rsquo s latest investment will support ERA Vietnam&rsquo s next phase of growth, and allow for greater value for Apac Realty shareholders over the long term.
He said: &ldquo The growth capital extended during our initial investment was the catalyst which sparked ERA Vietnam&rsquo s tremendous growth over the past two years both in terms of revenues and agent headcount.&rdquo
Chu said during the signing ceremony on Monday that one of Apac Realty&rsquo s visions is to become a billion-dollar revenue company &ndash and going beyond Singapore ties in with this.
He noted that its best year on record in 2021 saw revenue exceed S$700 million. The company is focusing on Vietnam and Indonesia as it works to achieve its revenue targets.
&ldquo This is just the beginning of our goal to grow ERA Asia-Pacific franchise business into a majority-ownership business model,&rdquo Chu said.
Apart from Vietnam, Apac Realty also holds majority stakes in ERA Indonesia and Thailand.
ERA Vietnam &ndash which is based in Ho Chi Minh City &ndash has seen its salesperson headcount more than double since Apac Realty&rsquo s initial investment, to almost 3,900 last month.
Revenue has also grown from around 74.3 billion dong (S$4.4 million) for the year ended December 2020 to around 117.3 billion dong for the nine months ended Sep 30, 2022.
ERA Vietnam&rsquo s CEO, Pham Thanh Tuan, noted that the company is currently ranked among the top 10 real estate agencies in Vietnam, and said the outlook for real estate agencies &ldquo remains bright&rdquo .
&ldquo While there is an abundant supply of unsold units in Ho Chi Minh City, demand for well-located quality new homes by reputable local and international developers continues to be strong with home buyers and investors,&rdquo he said.
Even though there have been reports of headwinds in Vietnam&rsquo s property sector, Pham remains optimistic.
He noted during a press briefing that the Chinese government has provided support for the real estate market in China, and believes a similar situation would take place in Vietnam.
Pham also sees opportunities in the current market to recruit more agents from small to mid-sized agencies. This ties in with ERA Vietnam&rsquo s plans to grow its number of agents to 6,000 by end-2024, and have offices in other parts of Vietnam such as Hanoi.
Pham is one of six individuals selling the 22 per cent ERA Vietnam and Eurocapital stake to Apac Realty. His stake in the two companies will fall from 19 per cent to 15 per cent post-acquisition.
The transaction aggregate consideration is up to S$15.4 million, with the earn-outs structured to incentivise the sellers to achieve performance targets. The earn-out conditions are based on revenue and net income generated by ERA Vietnam and Eurocapital for several periods between July 2023 and December 2025.
Apac Realty chief financial officer Poh Chee Yong said during a press briefing that the earn-out conditions require ERA Vietnam to hit S$35 million revenue and S$1.75 million profit for the one-year period from July 2023 to June 2024 for the first earn-out of up to S$2.8 million to be paid.
The additional earn-out of up to S$7.7 million would be paid if ERA Vietnam meets the revenue target of S$70 million and profit of S$3.5 million for the whole of 2025.
On a pro forma basis, assuming the maximum aggregate consideration payable, Apac Realty&rsquo s earnings per share for the financial year ended December 2021 would increase to S$0.1004 after the proposed acquisitions, from S$0.0996 before.
Net tangible assets per share would fall to S$0.1392 after the proposed acquisitions, from S$0.1795 before.
The proposed acquisitions will be funded with Apac Realty&rsquo s internal funds. The increased stake would also allow Apac Realty to consolidate both ERA Vietnam and Eurocapital in its financial statements.
Chu said: &ldquo 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 South-east Asia.&rdquo
Apac Realty sees advantage in its &lsquo ultimate agent training&rsquo and a super-app to help with analytics
THE way Marcus Chu talks about them, you would think ERA Realty&rsquo s agents sell financial products rather than properties. They do not, of course, but with a home ownership rate of 88.9 per cent in Singapore, it&rsquo s clear why building wealth through property is a skill Chu is keen for the company&rsquo s agents to hone.
The chief executive of real estate services provider Apac Realty : CLN +0.85%, which operates the ERA brand in Singapore and Asia-Pacific, Chu is a consummate marketer who peppers his answers with rhetorical questions. In an interview with The Business Times, he says he is determined to beef up his sales force through training and digital technologies.
The training programmes ERA offers agents carry names such as &ldquo Ultimate Agent Training&rdquo , &ldquo Wealth Creation Masterclass&rdquo and &ldquo Ultimate Transformation Leadership Camp&rdquo , all of which are meant to hone their hard and soft skills in closing property deals.
The wealth creation masterclass, for instance, teaches agents about investments and how they can help clients build their wealth through asset progression &ndash either growing the size or the number of properties owned.
The leadership training camp involves improving agents&rsquo emotional intelligence, changing their mindsets, helping them discover their inner strength and even managing their emotions.
Chu is also pushing hard on the property technology (proptech) front in order to condense Singapore&rsquo s plethora of property data to feed a content-hungry marketplace. The company invested some S$3 million in proptech solutions last year, with a commitment to invest another S$5.2 million in 2023. It has also almost doubled its tech team headcount to about 30, and developed a proprietary mobile phone application called Sales+.
The latter, he says, will be its game-changing &ldquo super app&rdquo . It offers solutions that reduce agents&rsquo pain points, so they can reach out to and serve customers more efficiently, and focus on converting prospects to sales.
Among other things, the app allows agents to customise and automatically share relevant content on the property market, create a personal website quickly, watch training videos, monitor clients&rsquo interest levels in different kinds of properties, and access data analytics.
ERA also has a separate app for homeowners called RealtyWatch, which alerts them to transactions in their neighbourhood and provides information on new project launches, resale homes and mortgage rates.
But isn&rsquo t every agency trying to create its own proptech?
Chu acknowledges the competition but says this is a good thing as more technology helps agents and customers, adding: &ldquo It&rsquo s about progression, isn&rsquo t it?&rdquo
For the nine months ended Sep 30, mainboard-listed Apac Realty reported earnings of S$23.9 million &ndash down 8.5 per cent from the year-ago period. Total revenue fell 3 per cent year on year to S$527.5 million, with the decline largely due to a 4.8 per cent year-on-year drop in resale and rental brokerage revenue to S$310.2 million.
New home brokerage revenue slipped 0.6 per cent to S$210.1 million.
Chu isn&rsquo t worried, however, as he believes 2022 was coming off what he says was a &ldquo super bull run&rdquo in 2021.
Besides, he says, Apac Realty&rsquo s focus is on long-term sustainable market share. ERA&rsquo s market share of non-rental residential transactions stood at 40.1 per cent as at end-September, similar to the 40.2 per cent at the same time last year.
&ldquo And we intend to capture more market share,&rdquo he said.
He plans to achieve this through recruiting more agents. ERA is Singapore&rsquo s second-largest agency with close to 8,500 agents as at late-November. It is offering new salespersons a welcome package worth some S$2,000, and experienced ones a package worth about S$5,000.
ERA will also roll out a brand refresh this year.
Chu sees resilience in the property market in both new project sales and resale homes in the coming year. ERA expects developers to have sold some 7,800 new homes in 2022, and forecasts 8,000 new home sales in 2023. As for private resale transactions excluding executive condominiums, it is expecting a volume of 14,200 for 2022 and a slightly higher 14,300 in 2023.
In the public housing segment, ERA is forecasting total resale volume of 27,300 flats in 2022, and 28,000 in 2023.
Chu isn&rsquo t losing sleep over the government&rsquo s property cooling measures, either. He likens these to vaccinations &ndash causing short-term reactions that are ultimately good for the market&rsquo s long-term sustainability, as they prevent prices from running ahead of economic fundamentals.
Outside of Singapore, Apac Realty &ndash which holds the ERA regional master franchise rights for 17 countries in the Asia-Pacific &ndash currently has a footprint in 10 countries.
With more than 21,000 agents across 646 offices, they make up just over half the 40,500 global ERA agent network. This is up from 16,300 agents in early 2020. Chu says Indonesia and Vietnam are its most promising markets, thanks to factors such as growing economies and a younger population.
For someone who has been in the property industry for 26 years &ndash he started out as a sales agent in ERA, clinching top achiever awards and climbing the ranks to become its chief executive in July last year &ndash Chu is convinced the agency that provides the best value in terms of tech tools will be the agency that endures.
A look of determination flashing across his face, he said: &ldquo We are building an agency that lasts. Isn&rsquo t that important?&rdquo
Happy New Year 2023!
never a logic to take over a service company in the same industry, buyers. sellers and tenants will start searching on their own if ever these 2 bigwigs come together as one since it would then dictate the market and commissions. Developers wont be held ransom and will be more than happy to engage real estate agents to be their sales and work for them on their projects on a salary basis yet with lower commission eg 0.5% instead of now paying between a minimum of 3% to 6%. Buyers will benefit.
Even then, developers may not even need them their agents to sell the projects since they would have engaged some ex real estate agents
nonetheless, agencies only sustain due to high commission earned generally from developers
soon shophouses flipping will be made to pay ABSD and SSD, sure the authority is looking seriously into it since F& B are selling too high prices on their food and commercial specialists already made a kill last few years with commission earned more than a milliion annually. Authorities are not blind, somehow opposing views will emerge due to the current zero ABSD and SSD for commercial and many investors are happily FLIPPING
Even then, developers may not even need them their agents to sell the projects since they would have engaged some ex real estate agents
nonetheless, agencies only sustain due to high commission earned generally from developers
soon shophouses flipping will be made to pay ABSD and SSD, sure the authority is looking seriously into it since F& B are selling too high prices on their food and commercial specialists already made a kill last few years with commission earned more than a milliion annually. Authorities are not blind, somehow opposing views will emerge due to the current zero ABSD and SSD for commercial and many investors are happily FLIPPING
wehuattogether88 ( Date: 08-Dec-2022 15:58) Posted:
|
APAC, a possible takeover target in the market. Might be ProNex is interested.
DYODD
DYODD
developers are too flexible to pay commission of between 3 to 6% depending on their urge to sell faster prior to the 5th years forced sale. wondering why Developers do not want to sell themselves and save the commission. These days buyers will just buy directly if developers directly give discount of the commission payable to agents / agencies to BUYERS. singapore has been importing human capital to fill the gaps, 30k+ agents some happily to be agent since they can make at least 50K annually just for one sale at 1.5 million x 3% commission, why bother to go and work for 8 to 9 hours for 5 days.
rents will get more higher since more imported foreign employment will be here. Developers could make or break this high human capital inflows. Hopefully they can see it and stop the high commission payable and just have to advertise on more social medias via their permanent emploees.
rents will get more higher since more imported foreign employment will be here. Developers could make or break this high human capital inflows. Hopefully they can see it and stop the high commission payable and just have to advertise on more social medias via their permanent emploees.
So many agents moving to other agencies + next year forecast not optimistic + DBS report on Apac, the counter likely weaken from current price of $0.56 as the earnings comes mainly from agent' s commission.
Also, not forgetting they give lots of cash incentives to agents such as loyalty bonus, etc at the expenses of the company to retain the agents which shareholders need to weigh in and yet about 700 agents still move to other agencies. This is concerning...
Will we see $0.3x to $0.4x in the coming weeks?
Also, not forgetting they give lots of cash incentives to agents such as loyalty bonus, etc at the expenses of the company to retain the agents which shareholders need to weigh in and yet about 700 agents still move to other agencies. This is concerning...
Will we see $0.3x to $0.4x in the coming weeks?