Consumer 'discontent' targeted by agency opening
London-based property agency Strawberry Star opened its flagship Singapore office yesterday, with the promise that its clients will decide on the levels of commission on all property transactions.
In response to what the company describes as consumer discontent in the city-state, Strawberry Star has launched what it claims to be a market-first, where consumers will only pay the commission fee they think is appropriate for the service received
Offices in both Singapore and Hong Kong will help the firm ensure that Asian audiences are serviced with on the ground agents at all times, it said in a statement.
The company said it made the move in response to market sentiments, where consumers have expressed negative experiences with real estate agents.
Strawberry Star said it is pioneering what it said is a unique service yet to be seen in the Singapore property market. For the first time, sellers and landlords will be able to choose how much of the commission fee they pay, depending on their satisfaction with the level of service provided.
Dorian Beresford (pictured), the Chief Executive Officer of Strawberry Star, said: Consumers, both in the U.K. and overseas, continue to be dramatically under-served by their agents.
The level of unsatisfied customers is astonishing and representative of the frankly abysmal service delivered by many in the industry.
We feel it is our obligation to redress the balance and put the power back into the hands of the public by literally putting our money where our mouth is. There will be no tie-in periods, no false promises, and if the client is not delighted by our service they get to choose how much of our fee to pay.
Some 45 percent of complaints received by the governing Singapore Council of Estate Agencies between April 2013 and March 2014 related to unprofessional or poor service, misconduct of property agents, as well as claims that agents were not acting in the clients interest.
Beresford added: We put people over property and ensure every single one of our clients - whether owners, occupiers or investors from the U.K. or abroad - feel that they are receiving a personalised service and are dealing with people that genuinely care about what matters to them.
This commitment stands throughout every stage of the buying, moving, selling and letting process.
The U.K. continues to be an incredibly popular property hotspot amongst Asian buyers, with Singapore- and Hong Kong-based investment now accounting for 90 percent of international purchases in the London new-build market alone.
Strawberry Stars expansion to Singapore aims to confront the cultural, geographical and legislative challenges that face overseas investment into the U.K.. An example would be the new Capital Gains Tax (CGT) charge on non-residents who sell residential property in the U.K. that will come into effect in April this year.
Recent research by Strawberry Star revealed that investors rely on the expertise and support of areal estate agent to navigate location-specific regulations and ensure a fluid and effortless transaction. However, the research also revealed that, particularly amongst Singaporean investors, adequate assistance to facilitate an overseas investment is not widely available to a high standard.
A high percentage of consumers felt their agent did not act in their best interests and, according to Beresford, highlights the need for improved quality of service for Singaporean investors wishing to explore overseas markets.
Strawberry Star has facilitated more than $S1 billion of investment into the London property market, and the development of the Asian arm of the business is a significant stage of Strawberry Stars global expansion programme, according to the company.
This is set to include an enhanced regional presence in the U.K. along with offices in India, China and the Middle East over the course of the next five years.
Andrew Batt, International Group Editor ofPropertyGuru Group, wrote this story. To contact him about this or other stories emailandrew@propertyguru.com.sg
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