Muhammad Najib Razali ( mnajibmr@utm.my ) Universiti Tun Hussein Onn Malaysia

1. INTERNET BUSINESS STRATEGY BY PROPERTY COMPANIES IN ASIA Muhammad Najib Razali (mnajibmr@utm.my) Universiti Tun Hussein Onn Malaysia

2. Introduction • This paper presents the results of a study of property companies in Asia on internet property marketing along the year of 2008. • The implementation of Internet as a medium of marketing is one of the present-day debatable topics in the evolution of business. This is due to the emergence of information and communication technology worldwide. • Thus, this study attempts to examine the evolution of internet business strategy by M.N Razali (2007 ) and M.N Razali (2008) focusing on property companies in Malaysia. • Data was collected from various real estate related companies’ web sites. The services and information offered in these web sites are discussed and used to describe the growth of internet usage in the real estate business. • The study will give significant contribution to property industry in Asia in order to improve the competitive advantage in global real estate markets by using internet strategy as a tool.

3. Internet Penetration in Asia 2008 Source : Internet World Statistic (2009)

4. Internet User and Population for Asia

5. The focus will be on the evolution of internet usage as a business strategy. The approach of this research is by using a company’s web site or desk research. • Some variables have been identified as elements in internet business strategy. Comparisons with the companies’ sites are also included. Similar with Rowley’s (2004) survey, the aspects of customer service delivery through property portals are profiled under several headings; contents, links, search facilities, and registration.

6. Research Methodology • This paper examines selected web sites of property development companies in Malaysia, Singapore and Hong Kong. These countries contribute $816 billion commercial property investment value in global market in 2008 (RCA,2009) • Asian countries contribute 19% of investment value in commercial property in global market. • Only Top 10 companies from each country base on capital market were selected for this survey. • In addition, these samples were taken from each local stock exchange. These companies are more likely to have a web site and provide more information in their web sites. The data collected was based on visible information from the companies’ web sites. • In addition, a list of attributes pertaining to internet business strategy, referred to as internet business strategy matrix, is developed. Each web site was then reviewed and a score was given to develop an index.

7. Literature Review • The Internet technology gives an enormous impact to the way of doing business. Several articles, including but not limited to Malewar and Smith (2003), Heinen (1996), Zumpano et.al. (2002), McDonagh (2006), Benjamin (1994), and also research done by Fisher Centre for Real Estate and Urban Economics (2000) discussed technology usage in the real estate industry. • In United States, most real estate firms and brokers that specialise in the selling of residential properties are members of a Multiple Listing Service (MLS). The information in MLS includes, but is not limited to, particulars such as the property list price, the number of bedrooms, number of baths, car storage, school zones, exterior and interior amenities, kitchen features and a listing broker’s comments (Gordon et. al, 2002). • From the web site point of view, Hammil (1997) emphasised that a good web site can be used for advertising, corporate visibility, brand name recognition, public relations, press releases, corporate sponsorship, direct sales, customer support and technical assistance.

8. Internet Business Strategy Matrix

9. Top 10 Property Companies in Malaysia, Singapore and Hong Kong 2008 11. SC Global Development 12. Sunshine Holdings 13. Fortune Real Estate 14. Hiap Hoe Limited 15. Keepland 16. Guocoland 17. UOL 18. Ying Li 19. Sim Lian 20. K-REIT 21. Cheung Kong 22. Hang Lung Group 23. Henderson Land Development 24. Sun Hung Kai Properties 25. Sino Land 26. China Overseas Land & Investment 27. Shimao Property Holdings 28. China Resources 29. Country Garden 30. Sino-Ocean • SP Setia • IGB Corporation • Sunway City • Island & Peninsular • Sime UEP Properties • Bandaraya Development • E&O Property Development • Sunrise Berhad • YTL Land • Glomac

11. Property Companies’ Score

13. Findings • Internet Business Strategy Attributes’ Score

14. Attributes Score Ranking

15. Ranking by Country (Mean Score) #1 Malaysia : 65.4 #2 Singapore : 58.4 #3 Hong Kong : 55.5 Company Mean Score = 0.73

16. Rank Correlation between Companies • There is weak relationship of internet business strategy between the property companies. • Using Spearman’s coefficient of rank correlation between the two indexes, Rs = -0.2. • Thus it is indicate that the internet business strategy in the property companies are not significantly correlated.

17. Conclusion • This paper used property development companies’ web sites to investigate the occurrence of internet business strategy among property developers in Asia. This study has limitations similar to other studies examining business strategy. • The sample of this study is limited to 30 companies in Malaysia, Singapore and Hong Kong. • Presently, some of the companies in there 3 countries have widely implemented such internet business strategy, particularly as an effective means of disseminating companies’ information and selling property. Customers will have a better idea with all the information needed about the property as well as the companies’ background provided. In addition, it will also add value to companies’ image and prestige. • Some of the companies are still use traditional way of marketing is still in use. • Property development companies in Asia which have already attained world class standards have vigorously adopted the web-based business concept. It is believed that internet business strategy will become a major way of marketing properties in Asia.

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