Four mid-sized property agencies in Singapore – OrangeTee, SLP International, Dennis Wee Realty and HSR International – have formed an alliance to better address the “shrinking pool of buyers”, said media reports.
Dubbed Project Alliance Group (PAG), the alliance will rival two of the market’s largest players, PropNex Realty and ERA Realty.
According to Steven Tan, Managing Director of OrangeTee, PAG will focus on marketing local residential projects, a sector which he noted is turning into a “numbers game” as developers now favour bigger agencies that have more sales staff.
With the alliance, which came into effect on 1 July, the four agencies will have 6,000 agents collectively. This surpasses PropNex’s 5,600 and ERA’s 5,700 agents.
“This alliance will benefit developers because each agency has strengths in different market segments. Developers using PAG for their project launches will have access to a wider network of potential home buyers – a crucial factor to the success of project launches in today’s market,” Anne Tong, CEO of HSR International, said.
Notably, the alliance is not a merger, with each agency continuing to exist on its own right.
PropNex’s CEO Mohamed Ismail Gafoor reckons that the trio of Huttons, ERA and PropNex will still be the favoured marketing agencies by developers, considering their track records.
“Mid-sized agencies find it difficult to penetrate the market because of this existing preference,” he said.
He expects some teething problems when it comes to reporting to different Key Executive Officers as well as ensuring fair distribution of work.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
Related Stories:
Private Homes Prices Dropped In Q2 2014
Private Home Prices Up 0.8% In May
Potong Pasir HUDC Estate Privatised
