Singapore, 17 July 2015 ‐ PLANS are afoot to more than double ERA’s presence in the Asia‐Pacific from the current eight markets to 18 within three years, as the region remains primed for growth in real estate transactions.
The 10 new markets are Australia, New Zealand, the Philippines, Vietnam, Laos, Cambodia, Myanmar, Hong Kong, Macau and Papua New Guinea, said ERA Franchise System LLC president and chief executive Charlie Young.
ERA Franchise System is seeking out the right partners in these markets to develop the ERA brand, he told The Business Times on Thursday. He was in Singapore to discuss regional expansion strategies with key personnel helming ERA Asia‐Pacific.
Globally, the ERA franchise network has more than 33,000 brokers and sales associates and some 2,800 offices ‐each independently owned and operated. In the Asia‐Pacific, ERA operates in Singapore, China (Shanghai), Indonesia, Japan, Korea, Malaysia, Taiwan and Thailand.
While conceding that franchisee fees in the region have been affected by absymal transactions in some markets due to property cooling measures, Mr Young said this has not derailed the region’s long‐term prospects.
“The cooling measures have succeeded in terms of slowing the marketplace, but from our perspective, it doesn’t change our view that the Asian market, Singapore in particular, is very much primed for continued growth,” he said.
“It has all the ingredients that make a healthy real estate market ‐you have a free economy, a healthy economy, a great jobs market and a consumer population that believes in home ownership as a way to accumulate wealth.”
Citing “good success” in Asia‐Pacific markets such as Singapore, Japan and Indonesia, he pointed out that ERA has not maximised its presence in this region.
The franchise rights to expand the ERA brand in the Asia‐Pacific is now held by private‐equity firm Northstar Group, with ERA Singapore chief executive Jack Chua responsible for managing the ERA franchise in the region.
ERA Realty Singapore key executive officer Eugene Lim said ERA Singapore is top among ERA offices globally in terms of transaction volumes and commissions, though ERA in the USA remains the biggest revenue generator.
In fact, ERA Singapore bucked the trend amid declining market transactions by marking a 40 per cent year‐on‐year jump in residential resale transactions in the first half of this year. This bumped up its market share in the secondary market from 30 per cent to 35 per cent, he said.
He attributed this to the use of data analytics, which enabled ERA to identify areas where transactions are still moving.
In other attempts to stimulate new business avenues, ERA Singapore held its first auction on July 2, with some private residential units listed. It will make auctions a monthly affair in its office at Mountbatten Square going forward.
With real estate agents here migrating from smaller agencies to larger ones in the market downturn, the agent force in ERA Singapore crossed the 6,000 mark in June; it is moving towards reaching its 7,000 target by the end of next year, Mr Lim said.
As prominent brokers continue to play musical chairs in the industry, ERA brought some into its fold; these include Roy Chong, former head of business space at PropNex, who joined ERA in March as senior group division director.
Elsewhere, ERA is looking to launch ERA’s presence in South America, Mr Young said.
ERA remains bullish on the US recovery in “the foreseeable future”, even as demand shifts from foreign investors eyeing high‐end apartments to owner‐occupiers.
“What’s driving the US property market now is at the macro‐level, there is strong consumer confidence, strong employment numbers … While there was pent‐up demand, there was not enough housing stock, but we are starting to see more inventory coming to the market,” he added.
ERA Franchise Systems LLC’s parent firm Realogy Corporation listed in New York in 2012. It also owns other industry brands such as Century 21, Coldwell Banker and Sotheby’s International Realty.
Source: The Business Times
