The Housing & Development Board’s (HDB) launch of the HDB Flat Portal marks a significant shift in Singapore’s public housing landscape. What will be the impact to the different stakeholders? Does that mean it is the demise for the other private platforms like PropertyGuru, 99.co, Carousell, etc.?
For those of you who are unfamiliar about the portal, here are some screenshots.
I am not going to go deep into the UI/UX, but at a first glance, it looks like typical property platforms that we already have in Singapore, except… they make it just like any other government-owned websites (like CPF or IRAS sites, you know what I mean).
The WHY
So, why is this platform created in the first place? Well, it is for the (price) transparency between sellers and buyers, and also the hope that this can help to regulate the property prices in Singapore.
For those of you who are not from Singapore, the properties in Singapore are always going up seemingly as compared to other countries (especially to the US where there is clear property cycle). One of the most obvious (and craziest in my opinion), is how a government-built building, commonly known as HDB, which is not even freehold, has reached the price of 1.5 million SGD. People even had started to wonder (and perhaps speculate) that we can see a 2-million HDB in our lifetime.
Now, when we talk about such HDB, usually we talk about the resale HDB or what I often called the second-hand HDB. This in itself already gives a clue about the impact.
The IMPACT
This dedicated platform caters specifically to the resale of HDB flats, offering a potentially disruptive alternative to traditional methods. However, is it enough?
Here, we delve into the potential effects of this change on various stakeholders in the market.
Impact on Competitors
- Property Portals:
Established players like PropertyGuru and 99.co currently dominate HDB resale listings. While they can still feature HDB listings, the HDB Flat Portal presents a direct challenge, especially if it attracts a significant number of sellers seeking a more streamlined or potentially lower-cost option. This could lead to a shift in market share for resale listings.
I mean, HDB has all the data on their side, so they easily have all these features that are already integrated directly to their HDB internal stuff. This definitely makes it a lot easier for users to compare, check, etc. which other property portals may or may not have, and if they have such features, usually it is quite complex in the code side (I worked for 99.co before) and the data could or could not be accurate. Meanwhile for HDB, there is that initial trust in terms of data.
However, what about other types of properties? What about rental listing?
As someone who has been renting for years and years (yes, I came to Singapore at a young age and had to rent alone), I don’t think these portals will go bust. HDB’s target is only for the transparency in the resale market, specifically HDB resale (as of now). That said, these portals are still needed for the other stuff.
- Traditional Agencies:
While agents can still list on the portal, it empowers sellers to potentially go solo, bypassing agent fees (which could be one of HDB’s objectives). This could impact the business model of traditional agencies, particularly those heavily reliant on HDB resale transactions. However, the portal’s functionality might not fully replace the expertise and value proposition offered by experienced agents.
There is no doubt that there are exceptional property agents out there, that are also hardworking in learning and gathering information, hence the value proposition. On top of that, there will be people who would engage agents to handle all the processes as the whole process of buying/selling a house can take up to months, and there are also a lot of paperwork to be done.
For the newbies that don’t know what to expect, these agents can definitely help in smoothen the whole process and also help to make your life easier.
Personally, having purchased (as a buyer) by myself without engaging any property agent while the seller actually has an agent, I can see that it is actually easier on the buying side as all we have to deal with is just mainly HDB, on top of the filtering for houses to buy (which is not hard).
Meanwhile as a seller, it is harder because there are a lot of things need to face before you can sell (one with HDB, two with listing, three with the transaction process itself). With more steps, work, and efforts, I can see agents would still be needed at least for the sellers.
Impact on Market Participants
Having talked about the impact on competitors, let’s see briefly how each stakeholder is impacted.
- Buyers: The HDB Flat Portal has the potential to benefit buyers in several ways. Increased transparency through direct listings from HDB can provide more accurate and up-to-date information. Additionally, a wider selection of listings and potentially lower costs (if sellers choose to forgo agents) could be advantageous for buyers.
- Sellers: The ability to list directly on the portal empowers sellers with more control over the marketing process. This can be particularly appealing for sellers comfortable navigating the legalities and complexities of property sales. However, for those seeking guidance and expertise in areas like valuation, negotiation, and marketing, utilizing an agent’s services might still be beneficial.
- Agents: Agents will need to adapt to this evolving landscape. The ability to list on the portal expands their reach, but it also intensifies competition. Offering additional value beyond just listing properties will be crucial. This could involve providing expertise in valuation, negotiation, legal aspects of property transactions, and targeted marketing strategies to stand out in a competitive environment. Most importantly, agents can still post on behalf of sellers. Agents should view this as an additional platform where they can explore more.
- Renters: The HDB Flat Portal’s primary focus is resale flats. However, an increase in resale transactions could potentially free up more flats for rent, impacting rental prices and availability depending on market conditions. It’s important to note that the portal itself won’t directly handle rental listings.
Pros and Cons of the New Portal
Now, let’s take a look at the new portal more specifically.
Pros:
- Increased Transparency: Listings directly from HDB could provide more accurate and up-to-date information.
- Greater Competition: More competition among sellers and agents could lead to better deals for buyers.
- Empowerment for Sellers: Sellers have more control over the listing process and potentially save on agent fees.
- Convenience for Buyers: Streamlined search process with potentially wider selection of listings.
Cons:
- Challenges for Sellers: Selling a property without professional guidance can be complex, especially for first-timers.
- Impact on Traditional Agencies: Traditional agencies might see a decline in HDB resale business, potentially impacting service quality in the long run if they fail to adapt.
- Limited functionalities (for now): The current iteration might not offer the same level of marketing tools and features as established property portals. However, future enhancements are a possibility.
The Future of HDB Resale
The introduction of the HDB Flat Portal signifies a move towards a more transparent and accessible HDB resale market. While its long-term impact will depend on its effectiveness in addressing the needs of various stakeholders and its ability to evolve, it has the potential to reshape the landscape for buyers, sellers, and agents.
Although it will definitely last, it still needs more monitoring for now. As it is still new, public perception of the portal’s effectiveness and user-friendliness will be crucial for its long-term success.
Future enhancements also play apart in it lasting longer. Additional features and functionalities that can make it better serve market needs will definitely be accepted by users.
Wrap Up
At the end of the day, it all still boils down to how easy it is to use, how better it is compared to other portals, and how convenient or accurate it is.
With that, thank you for reading. If you think these might be helpful to other people, feel free to share. Also, I am not a professional and this article is just based on my opinion and experiences which might or might not be relevant to you. Believe in yourself and not other people.
Thank you for reading.
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