The end-to-end real estate transaction platform
Real estate is the largest of all consumer categories
16% of total
No1 household expense category
$62B
GTV / year in SEA
$115B
GTV / year in SEA
$140B
GTV / year in SEA
Cars
Sources: e-Conomy SEA 2020, Frost & Sullivan, iCar Asia public report, PropertyGuru 2019 IPO prospectus, Savill’s, OECD, DBS 21Q2 financial statements, HDB, URA, internal computations.
Scope: Household expenses: OECD. Loans: DBS’s 21Q2 financial statements. Asset class: world. E-commerce and real estate (primary+secondary): 2020. Cars (new+used): 2019. SEA: SG, MY, TH, PH, VN, ID.
E-commerce
No1 consumer loan category
2/3 of outstanding loan value
No1 store of wealth
3x value of all equities
Residential Real Estate
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Broken process: uncertain, inconvenient, costly
Miss 1st home
Find dream home online, without agent. But loan is not ready and old home is not sold. Can’t make offer.
>
>
Find Agent
Call the flyer from the mailbox / acquaintance. Agent asks via WA what is expected price.
More Agents
Engage more agents. Low quality, duplicate listings are posted, making owner look desperate.
Lose trust
Host 10 viewings on saturdays, no offer. Ask agent why, he answers “It’s a numbers game”. Don’t get it.
Lose patience
After 3 months, home still not sold. No news from agents for 6 weeks now. No plan for corrective actions.
Decides
to move
Finally moves
Price & List
Agent propose $500k. Ask for extra $100k buffer. Property is listed with incorrect description and at $550k.
Secure loan
Meet with banker to confirm possible loan amount. Budget for new home still a function of selling price.
Miss 1st offer
Receive $520k offer. But buyer rejected request for extension in order to have time to find new home.
Surender
Drop price to $500k, accept $480k offer. Go out to find new home. Visit 5, take the first one that is “acceptable”.
Debrief
6 months and $10k commission later, sold below market price and missed dream home.
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Core problem is the fragmentation of the agent…
1.8
Sales / Agent / Year
112k
Property agents in SG+MY+TH (vs. 90k doctors)
Source: For sales per agent per year, Singapore CEA data Jan-Sep 2021, annualised. For property agents, PropertyGuru’s IPO Prospectus 2019.
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… which is a legacy of the previous retail model
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Covid-19 accelerated shifts in consumer behaviours
Sellers
and
Buyers
demand digital first experiences
Sellers
are now searching for agent(s) online, not offline anymore
Sellers
are now confident building trust with online brands
Flight to digital
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Meet
Mr and Mrs Tan
They decided to upgrade their home to a bigger one.
To afford their new dream home, they first need to sell the old one.
1%
No hidden fees
(i.e. half the standard fee)
$30,265
Average extra money obtained by a seller choosing Propseller
(i.e.US$4k from lower commission fee + US$26k from higher selling price)
Clients are “in shock”, at scale
“3 days, sold above expected price, 1% fee. Sound like advertising right? It’s not. My wife and I are still in shock” Joseph Choy
“Other agents tried 1 year, Propseller sold it in 1 month” WK Woo
“Its platform will disrupt the traditional way” Nancy Lee
“Magnificent” John Alam
“Experience that was unbelievable” Keith Leong
“I was blown away” Roy Lee
“Epitome of praiseworthy” Eileen Lyn
4.8
(227)
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We’ve redefined the operating model, upside down
| | | | ||
| Company | Individual | | Company | Individual |
Generate Owner Leads | | | | | |
Qualify Owner Leads | | | | | |
Price Property & Prepare Sales Collaterals | | | | | |
Meet Owner, Sign Agency Agreement | | | | | |
Prepare Property for Marketing (Photos, etc) | | | | | |
Post & Optimize Listings | | | | | |
Handle Seeker Leads & Book Viewings | | | | | |
Run Viewings | | | | | |
Negotiate & Close | | | | | |
Send Invoice | | | | | |
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Before vs. after augmentation: 7x more revenue
Gross revenue per consultant
Quarterly, US$
Before
After
Start date at Propseller
How to read: “The average Propseller consultant generated: US$6k of Gross Revenue in the 4th quarter before joining and US$76k in the 4th quarter after joining.
Note: Hero deals with GR above US$15k are excluded. The 2 consultants “0” (Warren and Aileen) hired before Propseller Seed round are excluded.
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Our launchpad SG is now world’s grandest prize
US$, based on annualised 2020-H2, excluding China, Hong-Kong, and Japan
Real estate transaction innovators and their launchpads
Markets | Innovators | |||
Name | GTV | Launchpad of | Mkt Cap | Investors |
Singapore | $50b | Propseller | … | … |
New York City | $32b | Compass | $6b | |
Seattle | $25b | Redfin | $5.5b | |
Sao Paulo | $22b | Loft | $2.5b | |
Berlin | $20b | McMakler | $1b | |
Phoenix | $19b | Opendoor | $14b | |
Sources: For Singapore: URA, HDB actuals 20H2, annualised. For New York: Real Estate Board of New York actuals 20H2, annualised. For other cities, propseller estimates
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Best possible timing, unprecedented shift to WFH
Work from Home
Lead people to want bigger homes
Has Triggered “Upgrade Domino”
Next 2-5 years expected to be far better than normal
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