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Real Estate Knowledge

3 Ways Real Estate Is Moving Online

  • China developer Evergrande makes USD $39 BILLION in sales through online sales
  • An 180-sq. meter apartment in Shanghai sold online for USD $2.4 million

In recent decades, modern technology has made it much easier for us to adapt to the “online” life. Especially during the COVID-19 pandemic, it has shifted a lot of brick-and-mortar businesses to operating online. The real estate industry is no different from the others.

Property Aggregators

In the U.S.

Real estate companies are now embracing e-commerce by creating online portals and websites to list properties. Buyers can easily preview their ideal homes and have access to all necessary information within a few clicks. Zillow, a leading real estate company in the U.S., reported that it had received 36 million monthly visits to its website as of January 2020. The traffic to their sale listings on their website increased to 41% in 2020. This shows that the pandemic has significantly changed home buyers’ house search journey.

In China

Let’s take a look on the other side of the world. In the midst of lockdowns and layoffs during the COVID-19 outbreak , China Evergrande Group, the largest developer in the country, was the first to generate sales online by launching an app called Hengfangtong. The app allows users to view areas of property virtually, such as hallways, rooms and parking lots etc. The group’s revenue rose 17.5 % to 266.63 billion RMB (equivalent to $39.05 billion) including 82% sales from Hengfangtong. This allowed the group to get ahead of the game and become the world’s most valuable real estate brand.

Evergrande Group, the largest developer in China.

In Southeast Asia

The increasing number of online real estate portals has made home searching journeys more efficient and convenient. Hiroki Kazato, CEO of PropertyAccess, stated that amidst the global pandemic in 2020, he successfully transacted over $60 million worth of Philippine property due to the growth in digitalization.

In other parts of Southeast Asia, there has also been an increase in the online presence of real estate developers and companies. The top property portals in different regions are listed below:

  • China
    • Anjuke.com (1.5 million visits)
  • South Korea
    • Land.naver.com (15 million monthly visits)
  • Japan
    • Suumo.jp (Japan real estate market leader)
  • Taiwan
    • 591.com.tw (Top Taiwan property portal)
  • Vietnam
    • batdongsan.com.vn (4 million monthly visits)
  • Malaysia
    • iProperty.com.my (3.2 million monthly visits)
  • Indonesia
    • 99.co (8.5 million monthly visits)

The above Asian countries are ranked as the top producers in different areas, such as agricultural, mining and industrial products etc. This has brought tremendous wealth to the countries. Therefore, the emerging economies in these regions have caught the eyes of many overseas investors as the property markets remain vibrant and bring value in the long term.

Top property portals in Southeast Asia.

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Social Media

Social Media plays a crucial role in the online property sale process. A report released by the National Association of Realtors, suggested that around 50% of real estate professionals find social media platforms as one of the top technology tools that provide the highest quality of leads. With the increasing number of social media users, numbering in more than half of the world’s population having access to the internet, the number of online home seekers is only to increase with time.

Online Auctions

In the U.S., property has a typical value of around $300k USD. However, property prices vary drastically due to different aspects, such as the season and area. Therefore, the average property prices range between $300k up to a million.

On the other hand, online auctions of properties have been thriving in China. Taobao, an e-commerce portal operated by Alibaba Group Holding, had listed properties for bid. For example, a 180-sq. meter apartment in western Shanghai was sold for 15.95 million RMB (equivalent to $2.4 million). The price was nearly 50% higher than the initial quote of 10.85 million RMB. As you can see from here, online real estate auctions attract people to sell their properties on the platform. However, they also add value to buyers. Since listed properties start bids at 20% to 30% below the appraised value, properties can be bought at a lower price.

An apartment in western Shanghai, drew 90 bids in an auction.

In Conclusion….

The global pandemic has pushed businesses, particularly the real estate industry, to rapidly transform their way of generating sales. Online property sale is the future trend in the industry. Therefore, companies had to strive to keep up with the technology as well as investing in them to drive businesses and maintain competitiveness.

Now that you’re here…

At Denzity, we help you find your next overseas property. If you have any enquiries about the above properties, or questions about the process, reach out to our team here. Stay tuned for more investor focused content, financial advice, and industry updates.

Disclaimer

Please note all the above stated is opinion only and does not constitute proper investment advice. Denzity is not liable for any investment decisions that result from following the opinions outlined above.

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Market Updates

Enjoy Being Disliked, Aim for the Result With Jo Lam 林作 // 享受被討厭的過程,和林作一起努力爭取結果吧!

[English Below] 堅忍主義、拳擊、特朗普。 在這最後一集與 林作Jo Lam 採訪中,我們涵蓋了所有內容。

這是我們與備受爭議的香港 KOL 合作的三部迷你訪談中的最後一部,我們與大家想分享他的所有見解。

媒體是任何行業都不能忽視的工具,沒有人比林作更了解這一點。從法律行業到娛樂圈,再到拳擊比賽,他利用公關,塑造了一個備受關注的形象。

是什麼驅使他這樣做的呢?最重要的影響是 – 他對傳統規範的失望。
在不同工作場所和行業環境中,尤其是在傳統的行業裡,都在呼籲變革。
無論是簡單地把樂趣注入灰色、乏味的環境,還是促使人們更有創造性地思考他們想要解決的問題,林作都希望做到這一切。

此外,並沒有所謂不好的宣傳,一切的宣傳都是有價值的(正如我們在第一和第二集中討論的那樣)。
請一如既往地享受收看我們上面的訪談吧!

Stoicism. Boxing. Donald Trump. In our finale with Jo Lam, we cover it all.

This is the last of our three part miniseries with the controversial Hong Kong-based KOL, and we want to share all his insights.

Media is a tool that cannot be ignored in any industry, and nobody knows that more than Jo Lam. From law to entertainment, to boxing, he has utilized public relations and cultivated a persona that has attracted tons of attention.

What drives him? More than anything – it’s frustration with the norm.

Workplaces and industries, especially the more traditional ones, are screaming for change. Whether it is simply injecting fun into a grey, bland environment, or pushing people to think creatively about the problem they want to solve, Jo wants to do it all.

Besides, no publicity is bad publicity (as we discuss in our first and second episodes).
Tune in to our episode above, and as always, enjoy!

▶ About the guest:

Mr Lam went to Harrow Public School and Oxford University, receiving his Diploma in Law from the University of Law in 2012.

In 2015, Mr Lam officially became a practicing barrister in Hong Kong and practiced at Zhang O’Seo Great Law Firm, one of Hong Kong’s oldest barristers.

Most recently, only 2 months after joining the insurance industry, he has signed 30 policies in just two months (as of June of that year) as a financial planning consultant for Prudential in the UK, with an annual premium of HK$1 million.

In November 2015, he stood for election to the Longxing District Council elections in Huang Daxian District. In 2017 and later, he pivoted more towards media and entertainment.

▶ Contact Jo Lam & His Team Here:

Facebook: https://www.facebook.com/jolamchok                            

LinkedIn: https://bit.ly/3Av6lda

▶ Disclaimer:

This disclaimer informs readers/audience that the views, thoughts, and opinions expressed in the text/video belong solely to the author & participant, and not necessarily to the participant’s employer, organization, committee or other group or individual. As it can be difficult to catch some minor errors, transcripts may contain a few typos or inaccuracies.

Please note the following legal conditions:

Denzity owns the copyright in and to all content in and transcripts of Denzity’s video programs and publications (collectively referred to as “Denzity Materials”, with all rights reserved and its right of publicity.

You are welcome to share the below transcript (up to 500 words but not more) in media articles (e.g., The South China Morning Post, Bloomberg, New York Times), on your website, in a non-commercial article or blog post (e.g., Medium and WordPress), and/or on a personal social media account for non-commercial purposes, provided that you include attribution to “Denzity” and link back to the denzity.io/blog URL. For the sake of clarity, media outlets with advertising models are permitted to use excerpts from the transcript per the above. Paragraph

No one is authorized to copy any portion of the Denzity Materials or use Denzity’s name, image or likeness for any commercial purpose or use, including without limitation inclusion in any books, e-books, book summaries or synopses, or on a commercial website or social media site (e.g., Facebook, Twitter, Instagram, etc.) that offers or promotes your or another’s products or services.


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Market Updates 未分類

3 QUESTIONS Every Property Entrepreneur Needs to Ask Themselves

In our second episode with Edwin Lee, he shares the key elements of business that allowed him to succeed.

In our second episode with Edwin Lee, we continue the conversation about his business journey with self-built Bridgeway Fund. He’s built up Hong Kong’s first SFC retailer fund from scratch, and this is the second part of his story.

Throughout any business journey, everyone must be ready to encounter strong competition and criticism. In describing his experience building up a shop fund, Edwin Lee shares his own fair share of struggle, and how he rose above. In order to become the best in his niche and reach nearly 50% market share of turnover rate, he focused on answering three key guiding questions.

-Does the market have demand?

Regardless of how strong a business idea there is, it must be applicable in the local market.

In the case of Edwin Lee, he recognized that small shops were very popular in Hong Kong, and people were interested to become involved in their transactions. Business leaders must consider how the market would react to their solutions, and how potential clients will differ in opinion.

-Who are your competitors and what are their strengths?

Understanding your competition is a crucial element of understanding your own company.

In the case of Bridgeway, Edwin has gone against strong international competition. Famous “Shop Kings” have carved out portions of the Hong Kong market share, yet he still boasts a strong market capitalization. How has he done so? By becoming the best in his niche.

-Do you have what it takes in your niche?

The most adaptable, not the strongest, survive.

Hong Kong is home to strong players, as mentioned above, and Edwin recognized this early. In the first few months, he established what types of retailers and price ranges he would operate in, establishing his territory that he would become the best in. By not focusing on everything at once, he could devote his full attention and make sure he dominated in the niche he created for himself.

With all this said, a successful venture is much more than a clear business plan. Edwin strongly supports the idea that investing in oneself through education truly creates a good leader. Being considerate of alternate options and being well-read has enabled him to prosper in both business and private life. While there is no one-size-fits-all formula for success in the real estate industry, these questions and Edwin’s insights create a necessary foundation.

Watch the above discussion for these useful insights, and stay tuned for our third episode with Edwin Lee. Enjoy!

▶ About the guest:

Edwin is the Founder of Bridgeway Prime Shop Fund Management Ltd, the first SFC (Securities Future Commission) licensed fund management that focuses exclusively on shop properties investment in Hong Kong and major cities worldwide.

Edwin established Bridgeway (Originally HKBI) in 2001 after being an investment banker at Credit Suisse First Boston in New York and Hong Kong. Over the past decade, Bridgeway has grown from a one-man company to become the leading business startup consulting company adopting the Business Build-Operate-Transfer (BOT) model with 300 staff in Hong Kong. As of June 30, 2013, Bridgeway has completed 1,11 business sales transactions and built 78 businesses for entrepreneurs to purchase as ready-made-businesses. Bridegeway now focuses exclusively on property fund management, an SFC regulated type 4 and 9 activities in Hong Kong.

Edwin was the sole awardee of the 2010 Hong Kong Business Awards: Young Entrepreneur Award by DHL/South China Morning Post. He was also named the Innovative Entrepreneur of the Year 2007 by the City Junior Chamber of Hong Kong and Entrepreneur of the Year 2012 by Capital Magazine.

Edwin was the youngest and first non-American Chairman (2009) in the 29-year history of the International Business Brokers Association (IBBA), the world’s largest association for business brokers based in Chicago, USA. Edwin is currently a Board Member of Cyberport Hong Kong. He is a U.S. CPA and a Chartered Financial Analyst (CFA). Edwin received his B.S. Finance and M.S. Accounting from University of Southern California, USA. He has completed his Doctor of Business Administration (DBA) degree at the HK PolyU with a research focus in entrepreneurial motivation and decision making. Edwin has also completed the 3-year Owner President/ Management Program at Harvard Business School.

Edwin is one of the awardees of the 2011 Ten Outstanding Young Persons Selection organized by Junior Chamber International.

▶ Contact Edwin & his team Here:

Website: https://www.bwfund.com/

Facebook: https://www.facebook.com/BridgewayPrimeShopFund                                     

LinkedIn: https://bit.ly/3z7gX1j

▶ Disclaimer:

This disclaimer informs readers/audience that the views, thoughts, and opinions expressed in the text/video belong solely to the author & participant, and not necessarily to the participant’s employer, organization, committee or other group or individual. As it can be difficult to catch some minor errors, transcripts may contain a few typos or inaccuracies.

Please note the following legal conditions:

Denzity owns the copyright in and to all content in and transcripts of Denzity’s video programs and publications (collectively referred to as “Denzity Materials”, with all rights reserved and its right of publicity.

You are welcome to share the below transcript (up to 500 words but not more) in media articles (e.g., The South China Morning Post, Bloomberg, New York Times), on your website, in a non-commercial article or blog post (e.g., Medium and WordPress), and/or on a personal social media account for non-commercial purposes, provided that you include attribution to “Denzity” and link back to the denzity.io/blog URL. For the sake of clarity, media outlets with advertising models are permitted to use excerpts from the transcript per the above. Paragraph

No one is authorized to copy any portion of the Denzity Materials or use Denzity’s name, image or likeness for any commercial purpose or use, including without limitation inclusion in any books, e-books, book summaries or synopses, or on a commercial website or social media site (e.g., Facebook, Twitter, Instagram, etc.) that offers or promotes your or another’s products or services.


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Market Updates 未分類

ESG in Real Estate: Why it Matters

ESG is increasingly a necessity to any property stakeholder. What exactly is it, and how is it shaping the real estate industry as we know it?

In today’s episode, I sit down with Patty Ng and Rosaline Fu to talk about ESG in real estate. Patty and Rosaline are both professionals experienced in the application of ESG in the property sector, and they will share their insights as industry insiders, including experiences with big clients, and their outlook on what is to come.

What it means to be ESG is a large and complex discussion. In the case of real estate, that’s good news. The more elements of sustainability there are, the more pathways for ESG friendly solutions and applications.

At this moment, the E, or environment, of ESG, is the most emphasized, however, the social and governmental factors are still very important. Real estate companies are increasingly becoming aware that there are more ways to measure success than the finances, and incorporating all elements of the ESG initiatives equally are the best way.

With that said, there is a lot of work to be done in both public and private sectors to incentivize sustainable initiatives. While green buildings are already giving better yields and premiums, government and business group benefits to ESG focused firms would simultaneously drive growth and create a better world.

Stay tuned for our second episode of ESG, where we sit down with two local PropTech leaders, who discuss the implications for ESG in the startup world, and how it is remolding the real estate industry.

▶ About the guests:

Patty is the project lead of the sustainability division at Sedgwick Richardson, a design and sustainability consultancy with a strategic focus on the Asia Pacific region. With over eight years of project management experience, she dedicates her time to contract structuring, scheduling, planning, and management of numerous stakeholders to deliver a seamless project experience for her clients. 

Rosaline is a strategic consulting manager at Colliers, where with a sustainable approach she conducts market research and advisory projects related to retail study, residential development, data centre development, Tso Tong Land and brownfield matters, industrial development and more

▶ Contact the Guests here:

-Rosaline Fu

LinkedIn: https://www.linkedin.com/in/rosaline-fu-877952ab/

Website: https://www.colliers.com/zh-hk/news/success-story-rosaline-fu                            

-Patty Ng:

LinkedIn: https://www.linkedin.com/in/pattyng/

▶ Disclaimer:

This disclaimer informs readers/audience that the views, thoughts, and opinions expressed in the text/video belong solely to the author & participant, and not necessarily to the participant’s employer, organization, committee or other group or individual. As it can be difficult to catch some minor errors, transcripts may contain a few typos or inaccuracies.

Please note the following legal conditions:

Denzity owns the copyright in and to all content in and transcripts of Denzity’s video programs and publications (collectively referred to as “Denzity Materials”, with all rights reserved and its right of publicity.

You are welcome to share the below transcript (up to 500 words but not more) in media articles (e.g., The South China Morning Post, Bloomberg, New York Times), on your website, in a non-commercial article or blog post (e.g., Medium and WordPress), and/or on a personal social media account for non-commercial purposes, provided that you include attribution to “Denzity” and link back to the denzity.io/blog URL. For the sake of clarity, media outlets with advertising models are permitted to use excerpts from the transcript per the above.

No one is authorized to copy any portion of the Denzity Materials or use Denzity’s name, image or likeness for any commercial purpose or use, including without limitation inclusion in any books, e-books, book summaries or synopses, or on a commercial website or social media site (e.g., Facebook, Twitter, Instagram, etc.) that offers or promotes your or another’s products or services.

Categories
Market Updates 未分類

Three Ways Millennials are Shaping Real Estate Investment

Consumer habits backed by spending power drives change. For that reason, the motivations and spending practices of millennials have increasingly become part of any market outlook or forecast. From their dining habits to where they prefer to live & work, the demands of this wealth-accumulating consumer class have radically shaped industries. From this demographic trend, current and future property markets are undergoing radical change.

Who exactly are the millennials, and what sets them apart? Born between the 80’s and 90’s, they represent the largest cohort of a generation. They have grown up during a period of globalisation, rapid digitisation, and economic integration. As such, they value immediacy and functional digital spaces. As far as investment is concerned, they are waiting longer than previous generations to purchase a house and get married.

How do they interact with the property industry? The average millennial’s tech-savviness and international-facing mindset make them more willing to adopt/utilise online aggregators, accelerated overseas investment, and the Environmental, Social, and Governance (ESG) standard.

Online aggregators

Millennials, now between their late 30’s and mid 20’s, fuel the demand and success of online solutions. More so, their connection to a massive online community with free-flowing information, and their exposure to different lifestyles and solutions have made them more demanding, exploratory, and impatient.

Aggregators are increasingly crucial in property search and purchase, as per this insight from an online buying trends article found here.

Most millennials are comfortable taking investment advice from the Internet. Whether it’s market research or actual house hunting, the use of online aggregators has become a crucial element of millennial investing. If a brand lacks a digital presence, it is unlikely that it will win out against a competitor with a strong online portal and lead generation.

As investors increasingly depend on online sources, companies should realize the necessity of building their brand online, lest they lose their existing competitive edge.

Overseas Investment

In Hong Kong, homeowners represent a shrinking minority of the population. Even in 2017, only 49.2% of Hong Kong households owned the property they lived in. Comparatively, Singapore’s successful government housing initiatives have brought homeownership above 90%. Understandably, young and mid-career professionals view the local market with unease. In addition, moving out of the family home is not seen as a barrier to adulthood, rather, something more considered before marriage and settling down seriously with a partner.

Yet, purchasing property for investment has never been more popular. News from friends and relatives from overseas who have experienced comparatively dirt-cheap prices have pushed more people to look abroad. For example, HK $1.8 million can fetch a 600-sq ft, two-bedroom flat in downtown Brisbane, which can quickly be leased out to a high-demand market. Meanwhile, a similar 604 -sq ft flat in eastern Hong Kong at the Kornhill Development sold for a whopping HK$10.3 million in early 2020.

Hong Kong’s dense real estate market is pushing residents to search abroad for their next property investment.

Combine this with the strong performance of the Hong Kong dollar during the pandemic, and it is no surprise that Hong Kongers, millennials, and otherwise, are looking abroad for property investment. Since the pandemic, Jonathan Benarr, director of APAC at international property portal Quintessentially Estates, and his colleagues have seen an “over 300 percent increase in client requests for buy-side support,” with main cities of interest being “Sydney, London, and Lisbon.”

ESG – Environmental, Social, and Governmental

On top of online aggregators and overseas investment, millennials are making investments more green. In a report on the impact of social good on real estate, Deloitte describes millennial investors as individuals who make sure their properties are “aligned with their intended positive social impact.”

Millennials are reshaping property investment through focus on ESG.

Investors of this generational cohort are formally educated and have a personal stake in social, environmental, and governmental concerns. Asset prices reflect this as “greener” projects promise a higher yield and premium. This is encouraging for asset managers, as new practices in development have enabled green buildings to see a 30%-80% reduction in utility costs.

All in all, Millennials are reshaping real estate, and companies must adopt new ways of doing business to cater to their needs. These changes are here to stay, and the application of digital technologies are quickly replacing traditional methods.

Are we right in emphasizing the growing reliance on online aggregators, overseas property, and ESG components? Let us know in the comments below Real estate companies in all molds best stay in tune with events and trends of the millennial investor. Are we right in emphasizing the growing reliance on online aggregators, overseas property, and ESG components? Let us know in the comments below!