Agents shift focus from residential to commercial, industrial sites
Some estate agents are shifting their focus from residential to commercial and industrial properties due to the weakening residential sector, according to The Straits Times.
PropNex Realt state agent Jonathan Kong, for instance, has been involved in property deals for home buyers but now that both the HDB resale and private property markets have slowed, he is dealing with more commercial and industrial spaces instead.
One of his latest deals was for a freehold 1,800 sq ft shophouse at 32 Siglap Drive, transacted for S$2.88 million just last month and earning him over S$10,000 in commission.
"The market trends have shifted, and agents are going to where the business is," said Kong.
He recounts that in the past, he had spent most of his working hours in HDB resale dealings but now, he spends up to 70 percent of his time on commercial and industrial properties, which comprise a smaller market.
Along with the change of focus, Kong also needed to learn new things in line with marketing such properties. He recently attended a seminar organised by PropNex, his company. He noted that "sellers and buyers are getting more savvy, and we need to be able to field their questions."
Savvy investors are also concentrating on this sector, which promises higher profit margins.
One example is Sameer Aswani, Director at SJ Land, SJ Properties and ASA Global, who owns office, warehouse, retail and residential properties in MacPherson, Marina Bay and Tanjong Pagar.
Over the past two years, he has picked up seven units at Pantech Business Hub (pictured) in Pandan Loop. Such units can yield up to eight percent in annual returns, higher than the three to four percent returns for non-landed residential units and one to two percent for landed units.
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