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Emerging Trends In The Real Estate Industry - An Estate Agents Perspective

Emerging Trends In The Real Estate Industry - An Estate Agents Perspective. Previndran Singhe. Shaping Buildings to the People/Business. What kind of buildings? How will they be built? How will they be managed? How will they be financed?

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Emerging Trends In The Real Estate Industry - An Estate Agents Perspective

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  1. Emerging Trends In The Real Estate Industry- An Estate Agents Perspective Previndran Singhe

  2. Shaping Buildings to the People/Business • What kind of buildings? • How will they be built? • How will they be managed? • How will they be financed? • In short, how would people want their offices, homes, factories etc be built?

  3. The Need to Integrate the Future • F = Fast • U = Urban • T = Tribal • U = Universal • R = Radical • E = Ethical

  4. F

  5. FAST F • The Speed of 96/97 Crisis • The Speed of 9-11 impact and recovery • The Speed of Bird Flu • The Collapse of Enron • The Collapse of Arthur Anderson • The Speed of Mergers – Local Banks, Telco Companies, Overseas FMCG’s etc Speed is going to be everything – to react to market changes, market requirements and competition.

  6. Real Estate MarketOvertaken By Events F • New Requirements before completing a building – legislative, market forces • Property not suitable upon completion • Companies Rise and Fall within months • Requirements Constantly Changing • New Technologies and Standards make buildings have lower life expectancy – obsolete within 15 years • So Keep Your Options Open – for our clients, developers and ourselves

  7. Survival of Traditional Real Estate Players? F

  8. The Future of Corporate HQs F • Expect More Expenditure of Corporate HQs in Coming Years due to Mergers/De-mergers, Expansions etc.

  9. Ownership is Last Century Model F • HQ’s are Non Core Assets • Not in property ownership/speculation – eg MAS • Some Companies are worth less than their asset portfolio!! • No need to own assets • Short Term Leases preferred – more Sales & Leaseback transactions, or built to spec then lease etc • Releases Capital for growth • Flexibility Provided • Ability to Move Fast

  10. Technology Will Dominate All Real Estate Issues F • Web Based Real Estate Management • Flexible internal environments – to change fast • Wireless working – Hotels, Malls, Offices, Residence • Home working - Connectivity • Everywhere mobile • Open plan chaos – noise and privacy

  11. The Impact of E-commerce and Other New Technologies F • – How Buildings Are Designed– How Buildings Are Developed– How Buildings Are Re-developed– How Buildings Are Utilized– How Buildings Are Valued

  12. Urban U

  13. Cities Are The Future& Real Estate Play will be Urban U • Main Cities & People attract people • London has grown by a million people in 15 years • Kuala Lumpur circa 700,000 in 20 years – Look at the explosion of Growth in KLCC locality. It is the future!!! • Life, fun, energy, resources • HQ’s in prominent city sites – 20 minutes from major airport hub – via rail, helicopters or road • Tapping communities of expertise • Growing intolerance of long commuting

  14. Mega Cities will be the Mega Markets • The Future will be China/India/Africa • In South East Asia, it will be Bangkok, Kuala Lumpur, Jakarta but the main pull will still be Indo China • Slum Relocation Programs/Refurbishment of Public Housing etc. For Example, China has 1.25Billion sqft of residential public housing that needs to be refurbished

  15. Arrival of Western Life Style U • Shortage of good quality space • Stricter planning • More regulations • Higher expectations • Security key issue

  16. Tribal T

  17. Global Values Clash • As much as globalisation is catching up, all real estate play remains local – to the “tribe”. Local Laws, Local Policies, Local Practices. • No Such Thing as one culture or one Value System • Global Real Estate Brands will use local structures to express and target the markets

  18. Universal U

  19. Future Of Real Estate BusinessWill Reflect Global Businesses U • For Example Danaharta as the Real Estate Co, with a Core Management Team, outsourced the sales to Registered Estate Agents. Of the total assets sold in terms of value, 80% were sold by Agents.

  20. Client Focus – Not Deal Focus U • Real Estate service companies need to think and act globally – but only a few will succeed • Relationship management will be very complex – use of CRM • New skills needed for senior executives – global understanding, legal, financial impact on the real estate business

  21. Radical R

  22. Radical World demandsRadical Solutions R • Creative Options – Axis SOHU, Ritze, • New models, alliances and partners – Four Seasons Residences, St Regis Residence in Singapore, ELG, Real Estate Network, REHDA, FIABCI etc • Think the unthinkable – Bungalows in the Sky? • Keep people in the centre • Get ready to provide facilities customers don’t yet know they need

  23. Radical Issues In The FocusIn The Real Estate Industry R • Environment • Green Lungs, Forest Reserves • Land Use • Open spaces, water catchments etc • Energy Conservation • Material choice, building methods etc Huge Emotional Power

  24. Ethical E

  25. Value System - The DriverOf the Future • Huge, rapid and erratic changes inhow people feel • Changes in values, expectations,moral codes, ethics, moods andemotions • Significant impact on every aspect ofconsumer behavior, workermotivation and investor relations

  26. Value System • An individual Values: • Their own personal needs • Their family and friends • Their community • The world they live in • Companies Value: • Growth • Customers • Profits • Shareholder value • Deep Human Needs – We Are Humans After All • Family • Relationship • Commitment • Stability • Being loved • Being respected and appreciated • Having a sense of mission / purpose

  27. So, Shogun, How Can We Prepare For The Future? • Equip With Global Knowledge – markets, products • Establish Alliances & Network Marketing – MIEA, ELG, Real Estate Network, FIABCI • Speed is Essential • Management By Values – Staff, Clients, Customers • Tribal Marketing – Demographic Based Target Marketing • 88.7% of Malaysians are literate – educated society • 50% of society in the 25-55 age group – high percentage in the investing/property ownership market • People getting married later and having kids later in life • Leverage Technology for the Cutting Edge • Leverage Presence in Kuala Lumpur to Serve The Region

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