For over a decade, Navin Bafna has carved a path for himself in the competitive commercial real estate landscape
In the early days of his career as a property agent, Navin Bafna experienced something that would leave an indelible mark on his life and career. At a meeting in relation to a commercial property that was on the market, the representative for the seller, an executive from a well-known international property consultancy, asked Navin what he was doing there. “He thought that because I was from PropNex [Realty], a local agency, I wasn’t qualified to be there. He told me to stick to doing HDB transactions,” Navin recounts.
He can still recall the impact of that jarring comment, some 11 years later. “I was 29 at the time. It definitely hurt a lot,” he reflects. It was a blow, especially given the circumstances of his life at that point. Navin, an MBA holder and former investment banker, had recently left his job at a family office in Singapore to join the property industry. “It was a tough period, as my family wasn’t very happy about my choice and couldn’t understand why I wanted to be an agent,” he says.
Transitioning from an established career, it was already challenging that he had to start from scratch in a completely new industry. But the experience also highlighted to Navin a deep and systemic flaw in the real estate landscape – the fact that the commercial market was monopolised by consultancies, with a prevalent perception that agents from local property agencies such as PropNex were not equipped to handle those transactions.
Back in 2011 to 2012, Navin says that it was practically unheard of for local agencies to be appointed to market commercial properties such as large office floorplates and industrial buildings, or to be involved in other larger-ticket deals that fell under the purview of capital markets teams. “I felt like we were being sidelined, with zero respect given to us,” he shares. “That’s how the industry used to be.”
Navin concedes that a lack of experience and technical knowledge played a part in local agencies not being able to participate. “When I sold my first strata office space, nobody in my immediate team even knew how to prepare an option to purchase for a commercial property – they had never done it before,” he says. Back then, it was also commonly accepted that the local agencies only catered to the residential market. “Everyone stuck to what they did best, whether it was HDB resale transactions, new project launches or private resales,” he adds.
But beyond this, Navin also saw a more disturbing issue, namely, that the market was set up in a way that discouraged those who were not in an established consultancy from entering. “These were barriers to entry in place which didn’t favour local agents like us. We were never given a chance to do the bigger deals,” he says.
One of the earliest things Navin says he observed when he entered the space was the fact that there was a large discrepancy between co-broking commissions being offered to the consultancies versus the local agencies. If a new agent from a local agency was to bring a buyer to the transaction, they would be offered a commission of only around 0.1%, he says. In contrast, in situations where two consultancies co-broke a deal, the commission from the deal would be split equally between the two.
In addition, agents would also be hindered via other subtler means, one of them being the use of a tender process to sell a property. While a tender is seen as a way to get more offers from prospective buyers for a property, Navin highlights that tender processes typically do not allow for co-broking commissions. This disincentivises local agents from pursuing such properties, as they would not earn a commission even if they represent a buyer who wins the tender.
Navin adds that barriers also exist in the leasing space, with the majority of leasing rights for sizeable buildings in the CBD granted exclusively to the consultancies. Because of this, they often have a disproportionate advantage over the local agents who may represent a client looking to lease space at the building. This advantage has often resulted in the local agents being sidelined from lease negotiations with clients, or being prevented from earning a renewal commission if the client renews their lease.
All in all, local agents, especially new ones that are interested in participating in the commercial space, have a deck stacked against them. “It discourages them from even entering the space. That’s why you used to see so few agents from local agencies specialising in commercial properties,” Navin explains.
Encountering such obstacles back in 2011 - 2012 was certainly demoralising for Navin. But it also sparked a certain determination in him to overcome the barriers in place and carve out his own opportunities in the market.
Not having an office at the time, Navin would park himself at The Coffee Bean outlet at International Plaza on Anson Road. Focusing on strata offices, which was a much more fragmented market that the consultancies did not monopolise, he worked on securing and putting up any listings that came his way. “Whenever anyone called to enquire about a property, I would bring them for a viewing, even if I wasn’t sure whether the deal would happen,” he says.
In between viewings, Navin would explore the CBD, visiting different commercial buildings and learning their ins and outs. “I would observe the whole building and learn every single detail about it – what the floor plan looked like, whether it had a drop-off point, how big the car park was,” he said. He would take meticulous notes and commit everything to memory.
That dedication resulted in Navin becoming a walking database of commercial properties and their availability. And as he got to know more clients, this skill translated into more sales. He started brokering sales of units at International Plaza, as well as other strata buildings such as Central @ Clarke Quay, Prudential Tower and Suntec City.
Even as he got more successful, Navin remained passionate about having a more level playing field in the commercial market. In 2014, he created Up Academy together with Richard Tan and Vanz Han. The group provided classes for realtors looking to break into the commercial market. Navin recalls that the three founders hardly made any profit from the endeavour, but instead, saw it as a greater cause. “The idea was to break down those barriers and get more people involved in the commercial space,” he comments.
A shift in landscape has also accelerated change. In recent years, the number of property agents in leading local agencies such as PropNex, ERA and Huttons Asia has surged, bringing about a more balanced distribution in the market. Today, some local agencies have started marketing big-ticket deals, besides becoming more involved in the commercial space.
Amid this more encouraging environment, Navin has been able to flourish. Since 2017, he has regularly been a top commercial transactor at PropNex, through a steady stream of groundbreaking deals. He is now the chief in charge (IC) of the PropNex team handling the sale of strata units at CapitaLand’s Plus Building, a 28-storey Grade A office tower on Cecil Street. To date, PropNex has transacted a remarkable 44 units at the building – a feat that contributed to the agency being conferred exclusive marketing rights for strata office units at the tower. Presently, the team is marketing three floors at the development.
Elsewhere, Navin is also marketing several other notable commercial assets, including two floors at Prudential Tower, six strata units at Suntec City and three floors at GB Building. In addition, he has been appointed as the head IC for the PropNex team marketing Solitaire, the upcoming office project by TE Capital Partners and LaSalle Investment Management that is a redevelopment of the former PIL Building on Cecil Street.
Navin is gratified how his work has helped establish a strong commercial track record for PropNex. “We’ve come such a long a way. The fact that PropNex, a local agency, now has an inventory of assets that is larger than some of the consultancies is the biggest difference I’m proud to have had a hand in.”
While Navin has achieved success, he is not one to stay idle. The realtor continues to push for more transparency and a level playing field in the commercial market, hoping to help pave the way for more local agents to participate in this area. “Everyone should get a fair opportunity to compete in the commercial space. It will ultimately create value for everyone – not just the future generation of agents, but also the clients and the industry as a whole.”
Navin is currently in the midst of upgrading a project he started three years ago – Singapore Commercial Space, a website and app designed to help agents and clients to have a centralised database of listings for available commercial spaces across the city. On a self-funding basis, Navin is working with a team to turn the database into an online real-time system, which means information would be updated immediately as and when properties become available or get taken up. It would be the first aggregated commercial database of its kind in Singapore.
Navin also continues to strive for more fair commercial practices industry-wide, from giving opportunities to newer agents to co-broke with him with fair commissions, mentoring agents on the ins and outs of the market, to educating consumers. At PropNex, his track record in breaking boundaries has earned him recognition by management and peers, which in turn, spurs him to pay it forward. He regularly conducts commercial training sessions for PropNex agents, imparting the wealth of knowledge he has accumulated over the years.
At the end of the day, Navin envisions a commercial market completely free of barriers to entry for any agent, no matter which agency they are from. “We are heading in that direction, but there’s still a lot of work to be done.” He sees it as a duty and a privilege to be doing the work to help the market get there. “It’s something I want to do to give back to an industry that’s given me so much.”
For more information,
Contact Navin Bafna | 84684750
Senior Associate Division Director (R042737G)
PropNex Realty Pte. Ltd.