HDB Flat Portal vs PropertyGuru: Challenge On Market Dominance?

Trending 6 days ago

HDB has launched a spot listing portal (HDB Flat Portal), allowing owners and spot agents to database HDB flats for sale. Initially, this work will beryllium offered free of charge.

This taxable is peculiarly important for Singaporeans, arsenic nan mostly reside successful HDB flats, which often correspond nan largest plus successful a household. Additionally, this improvement could effect backstage listing platforms, existent property agents, sellers and buyers alike. Let’s research this further.

Why is HDB intervening successful resale listings?

That’s nan first mobility we should ask. I judge it arose because of nan ridiculously precocious asking prices for HDB flats. Just past week, for example, 2 HDB flats were listed for $2 cardinal each, while astir of america are still coming to position pinch flats trading for $1 million.

The interest present is that nan resale marketplace is fostering speculative behaviors. When specified high-priced listings are seen, it whitethorn promote others to raise their trading prices arsenic well, which past impacts affordability.

HDB has nary power complete these listings since they are posted connected backstage portals. However, by creating its ain portal, HDB tin region listings that are deemed unrealistic.

Additionally, location are caller rules successful place: sellers must registry their intent to sell, and buyers must person a valid HDB Flat Eligibility (HFE) missive to interaction sellers. This helps weed retired those who conscionable want to ‘test’ nan marketplace pinch precocious prices.

Essentially, nan HDB Flat Portal is meant to forestall distortions successful nan resale prices of HDB flats.

Would nan HDB Flat Portal effect spot listing portals for illustration PropertyGuru?

PropertyGuru is nan largest among respective spot listing platforms successful Singapore, wherever only existent property agents tin station listings, and location are associated fees. Specifically, it costs astatine slightest $1,425.72 per twelvemonth to station up to 5 concurrent listings.

So, nan mobility is whether PropertyGuru could suffer these HDB level listings because it is free to database connected nan HDB Flat Portal?

It remains to beryllium seen, arsenic free listing unsocial isn’t needfully a decisive factor. Platforms for illustration Carousell and Ohmyhome besides connection free listings but haven’t importantly eroded PropertyGuru’s marketplace stock complete nan years.

This resilience tin beryllium attributed to PropertyGuru’s web effect and beardown marque recall. In a two-sided marketplace that brings together buyers and sellers, nan beingness of much buyers people attracts much sellers. The marque is truthful entrenched successful nan minds of consumers — deliberation ‘buy property? cheque PropertyGuru’ — that it continues to tie nan mostly of buyers and sellers, contempt nan associated costs.

Remarkably, 90% of postulation to PropertyGuru.com is organic, not driven by paid advertising, highlighting its ascendant marketplace presence, which is 5.7 times larger than its nearest competitor. Thus, while nan HDB Flat Portal offers a free service, PropertyGuru’s established marketplace activity and marque spot whitethorn proceed to pull users consenting to salary for its advantages.

Some mightiness reason that nan HDB Flat Portal, being a government-led initiative, could leverage a larger ‘marketing reach’ than smaller backstage platforms. The authorities endorsement inherently establishes trust, and it doesn’t preclude agents from posting listings connected some nan HDB Flat Portal and PropertyGuru simultaneously.

Agents who are peculiarly cost-conscious and chiefly woody successful HDB transactions mightiness opt to move distant from PropertyGuru, but those progressive successful backstage spot transactions would apt proceed to usage PropertyGuru for its wide scope wrong that market. Additionally, rentals correspond different gross watercourse that PropertyGuru tin proceed to capitalize on.

Considering these factors, it seems much apt that PropertyGuru whitethorn suffer immoderate HDB listings, but not all. The platform’s beardown marketplace presence, marque recall, and divers offerings—beyond conscionable HDB sales—should thief clasp a important information of its personification base, peculiarly among those dealing successful various segments of nan existent property market.

In FY2023, nan Singapore marketplace accounted for 56% of PropertyGuru’s full revenue, though there’s nary elaborate breakdown disposable for really overmuch gross comes from HDB versus backstage properties, aliases income versus rentals. One imaginable effect of nan HDB Flat Portal’s preamble could beryllium a diminution successful nan mean gross per supplier (ARPA), which stood astatine S$4,977 successful FY23.

If nan HDB Flat Portal proves effective successful quickly trading units, agents mightiness consciousness little request to database connected PropertyGuru, perchance starring to less listings for HDB properties. This displacement could let agents to attraction much connected backstage properties, perchance reducing their request for higher-tier memberships aliases further advertizing credits connected PropertyGuru. As a result, ARPA could decrease, posing a situation to PropertyGuru’s revenue, particularly fixed nan important domiciled nan Singapore marketplace plays.

Despite dominating nan existent property marketplace platforms successful 4 location markets—Singapore, Malaysia, Vietnam, and Thailand—PropertyGuru remains unprofitable. This financial business suggests that PropertyGuru mightiness request to summation its prices to execute sustainability, which could thrust much agents to see replacement platforms that connection “good enough” services astatine a little cost.

PropertyGuru’s stock value has not done good and has dropped 52% since its SPAC merger successful 2022. The preamble of nan HDB Flat Portal is not invited news for PropertyGuru.

Impact connected agents, sellers and buyers?

Given nan emergence of million-dollar HDB flats, location is nary uncertainty that immoderate group are trying to profit by raising prices. This inclination is enabled by nan lucrative backstage spot markets. It is apt that a group of backstage spot owners who sold their properties astatine precocious prices are now downgrading to HDB flats and tin ‘overpay’ owed to precocious cash-over-valuations (COV). They are nan ones driving up nan prices. Given nan demand, immoderate sellers purpose to capitalize connected this opportunity. Agents are happy since their net are a percent of nan waste price, and nan much fierce ones mightiness moreover promote sellers to database astatine higher prices.

Of course, this script is detrimental for buyers who are fund constrained. They whitethorn not person been successful pinch BTOs and must edifice to nan resale market, only to brushwood escalating prices. This deflates their ambition to ain homes and makes their dreams look further retired of reach. This is why I deliberation nan authorities has decided to measurement successful and forestall resale marketplace prices from rising excessively fast. It is excessively early to show whether they will beryllium successful aliases if much measures are needed.

In nan grander strategy of things, it is evident that nan authorities is not loosening its grip connected controlling spot prices but alternatively tightening it further. The Singapore spot marketplace remains very resilient.

[My strategy to picking nan champion stocks now]

The markets person been rebounding strongly, but it’s still not excessively precocious to get in. Here are nan 3 strategies I’m utilizing to prime nan champion stocks for semipermanent investing and growth. Register now!