Flurry of ties

By
/ EdgeProp
|
August 31, 2017 12:30 PM SGT
Tan and Ong at the press conference announcing the merger of their associate teams to create OrangeTee & Tie
Is the latest merger between the associate teams of OrangeTee and Edmund Tie & Co a harbinger of further consolidation in the real estate agency business?
On Aug 28, OrangeTee and Edmund Tie & Co announced the merger of their associate agencies to create a new entity, OrangeTee & Tie. Currently, OrangeTee’s associate agency division has 2,938 agents, while ET&Co’s has 1,122. The combined entity will potentially have a sales force of more than 4,000 agents, making it the third-largest in Singapore come Jan 1, 2018.
“This merger has been a carefully considered exercise,” says Ong Choon Fah, CEO of ET&Co, at the press conference. “And we have planned for a growth trajectory that will make us a leading agency in Singapore, both through organic growth and mergers and acquisitions [M&As].”
On whether the group now harbours ambitions to become Singapore’s biggest player, Orange ee managing director Steven Tan says: “We don’t deny that size is important. If we have the scale, we can achieve many things — we will be more productive, see greater margins and can reinvest in the company to compete with external forces.”
Digitalisation and the sharing economy have disrupted many trad itional businesses, and the real estate sector has not been spared. “The market has responded by consolidating and rationalising,” says Tan.
Given the disruption in the real estate industry, competition could come from beyond traditional peers in the business, says ET&Co’s Ong. As such, the group is looking at how it can embrace technology, digitalisation and the sharing economy. “This calls for a radical change in mindset,” she adds.
Impact on agents
Agents of OrangeTee & Tie will be able to leverage the resources of both companies, such as innovative technology, comprehensive training programmes and access to project marketing opportunities with...