What’s next for PropertyGuru after it’s NYSE listing?
On the occasion of PropertyGuru’s NYSE listing yesterday, Hari V. Krishnan, Chief Executive Officer and Managing Director, PropertyGuru Group noted “We have a tremendous opportunity ahead of us as more affluent and digitally-enabled populations enter the real estate market. As a public company, we will also enable global investors to access this high-growth market.”
I wonder if PG’s next strategic move as a listed company is to acquire all of KF’s (or a regional or international real estate agency of similar size) business interests in Singapore, Malaysia and SE Asia and then leverage the core skills and connections of its major shareholders Richard Li & Peter Thiel (property development/investment and international payment gateways respectively) to enable global investors to access these markets.
I think but cannot be 100% certain the acquisition pathway is the fastest avenue for PG’s shareholders to unlock value in their investments. Last year, I blogged about PropertyGuru’s imminent listing and the wider implications of a change in its business focus from Business to Consumer to the much more profitable Business to Business segment. See here.
A summary of 🤠's comments on what might be in store for PG post NYSE listing posted to 360 KLCC last year :
“ PropertyGuru owns iProperty.com Malaysia , the deal was finalized in August 2020. How many Real Estate Agents or Valuers know 60-70% of the property search market in Malaysia is controlled by a single listed company? I wonder if most industry stakeholders in the real estate broking industry in Malaysia have again failed to see what is lurking around the corner.
🤠 thinks the biggest threat to the real estate broking industry is not illegal agents using PropTech - that's what MIEA thinks. I think but cannot be 100% certain the biggest challenge facing the real estate broking industry today is its almost total reliance on property portals to list properties for sale and rent.
IF PropertyGuru/iProperty.com decides to pivot its Malaysian business model towards more profitable market segments eg maybe a chunk of the lucrative New Projects marketing for itself, then PG will need to acquire a real estate agency. If that comes to pass, I don't think many home grown real estate agencies (with maybe some exceptions like PropNex, KPW, IOI and Chester) in Malaysia have the financial clout and data analytics capability to compete. I think real estate agents might want to brace themselves for maybe significant price hikes for listings on iProperty.com and PropertyGuru.com“
According to a company source 🤠contacted last year, PG DataSense is in the process of rebadging products previously under MYPropertyData and rollout a range of products targeting various segments like financial institutions & local councils/government, valuers, developers and property investors and first time home buyers:
1. Vantage (formerly PA) Visual analytics dashboards with interactive charts and graphs- transforming data into actionable insights to help users see and understand easily to make informed decision. The comparable Singapore PG product is “Insights” .
Target audience: Consumers and agents.
2. Vantage+ (formerly PA Pro) Flagship visual analytics platform with interactive charts, graphs and maps - transforming data into actionable insights to help business people make confident, data-led business and investment decisions. Datasets integrated into Vantage+ Map which includes updated photospheres.
Target audience: Developers, Property Agencies, Banks and local government.
3. VMS
Automated valuation systems. Two products, ProxyPrice - a AVM designed to provide an automated indication of current market prices based on a comparable market analysis of the most recent property transactions and multiple regression analysis. Target market: Banks, valuers, government agencies. Valuenet (formerly VMS) - a cloud based system for valuers to analyse transaction data as well as track, manage and complete valuation reports. Valuers and banks can use this system to connect with each other and manage transactions in a transparent and timely manner
4. Vantage+Map (formerly PA Map) Additional geographical information to help business people understand factors that drive growth in areas and market trends including land use data, existing or future infrastructure, and more.
