RHT Chestertons Valuation and Advisory has tied up with UOB Business Banking to launch Singapore’s first instant indication guide for commercial property in the SoReal Prop app.
The tie-up will help commercial property buyers who use the SoReal Prop app the value indication guide for local commercial strata titled properties within a minute, as compared to 30 minutes or more using the normal method.
A matrix produced by RHT Chestertons will generate a range of values using transaction records, past valuations, and current rental data in the SoReal Prop app which will allow an agent or buyer to apply for a loan through the app. When the loan is disbursed, a formal valuation report will be instructed.
The real estate advisory firm said that this instant valuation indication range guide platform was developed over nine months, with the valuation methodology being provided by RHT Chestertons to develop a matrix that can generate current range of values for a particular strata-titled commercial property based on the address and size. To improve the quality of future reports in the SoReal Prop app, RHT Chestertons will provide analytics which include charts in particular districts and estimated projection of property values based on past trends.
Such innovations cannot entirely replace the human element, the property advisory agency said. “Human input is still required to assess properties like landed factories, shophouses, hotels and dormitories, etc. as there are other intangible factors affecting value associated with the various property types,” it added.
If demand for such service is strong, RHT Chestertons may enhance the SoReal Prop app to include residential strata titled properties too.
United Overseas Bank (UOB) and SoReal Prop Pte Ltd (SoReal), a property technology firm, in September launched Singapore’s first all-in-one commercial property solution to feature an instant valuation service that is recognised by a bank. The solution, known as RealCommercial, makes it faster and easier for small- and medium-sized enterprise (SME) owners to buy their ideal office, warehouse or retail space – from searching for and valuing the property to obtaining a bank loan. In 2018, there were more than $8 billion worth of transactions in Singapore’s commercial
According to a survey by UOB, one in two SMEs plans to invest in fixed assets including buildings and factory premises. After finding a suitable property, SMEs need to obtain a reliable valuation for their loan application – a process which currently takes up to seven days3 within the industry, thus extending the time required to complete the purchase. However, UOB’s digital valuation service provides SMEs with a bank-backed valuation in under a minute, enabling business owners to fast track the buying process by proceeding with their loan application straightaway.
In addition to instant valuation, SME owners can see immediately the loan quantum for which they qualify based on their average monthly cash flow or affordability. The SME owner then uses their CorpPass to log into MyInfo Business, integrated within the solution, and the online application form will be automatically filled in with their company details.
Mr Mervyn Koh, Country Head of Business Banking Singapore, UOB, said, “From our experience in helping SMEs purchase their ideal commercial property, we know they want certainty and speed in the process. This means not having mismatched expectations in the property’s valuation or the loan quantum, both of which could lead to the SME not being able to secure their desired property.”
“To help SMEs with their purchase quickly and conveniently, we worked with SoReal to bring together the various partners in the commercial property ecosystem to streamline the commercial property buying process. With RealCommercial, SMEs will be able to buy their desired property with more confidence”.
The launch of RealCommercial builds on the Bank’s efforts to help property agencies transform their business models and processes via digital solutions and also supports the real estate industry’s transformation under the Industry Transformation Map. The Bank launched the first fully digital loan solution for homebuyers in August last year, reducing the time needed to apply for home loans from an average of 2.5 days to 15 minutes.
Helping real estate agents transform their business models and processes
The service will also help property agents to provide faster turnaround and better customer experience as they serve SME buyers. SoReal supports more than 200 property agencies, including the four biggest agencies in Singapore – ERA, Huttons Asia, OrangeTee & Tie and PropNex – which represent 72 per cent of all agents.
Mr Thomas Tan, President of Singapore Estate Agents Association said, “In today’s digitally-connected world, there is increasing expectation for services to be provided on demand. As such, the real estate industry must also innovate to ensure that we have the right business models and processes to meet customer expectations. The launch of RealCommercial equips property agents with digital tools that are essential to providing their SME buyers a more efficient and customer-centric experience. We are glad to have UOB’s continued support as we step up our efforts to transform the real estate industry.”
The RealCommercial mobile app can be downloaded from the Google Play and the Apple App Store.
Do you know enough about how property valuation is done in Singapore?
Knowing how to calculate the property valuation is of paramount importance to a home owner. It can help you determine whether you are overpaying for a home, or whether you have gotten yourself a real bargain. Paying the right price is just one way you can avoid overspending on your property.
Another smart way to avoid overspending on your property is to get the right loan. Getting the right loan can be a much simpler task, but only if you get the right person to it for you. Get in touch with a loan consultant to help you get the best loan deal at the right price.