Intero Asia Pacific is a real estate brokerage in the region that is an independent partner of Intero Real Estate Services, one of the United State’s most exciting real estate brand which was most recently voted as ‘The Best Real Estate Company in Silicon Valley’ by readers of San Jose Mercury News. iProperty.com catches up with Al Mendoza, managing director, Asia Pacific region of Intero Real Estate Services to see what’s the buzz all about.

iProperty: Please tell us more about Intero Asia Pacific.

Mendoza: I will start at the beginning with what Intero Real Estate Services, Inc. is, followed by its drive to expand globally.

Established in October 2002, Intero Real Estate Services Inc., has quickly become one of the United State’s premier real estate brands. Intero Real Estate Services, Inc. has grown from one office to more than 40, and has more than 1,800 agents. The Intero mission is to change the face of real estate; it is a different kind of company. Technology is at the core of what makes Intero such a forward thinking and innovative company. With our headquarters in Silicon Valley, California, the Intero strategy remains focused on striving to be at the forefront of how realtors, home buyers and sellers are using technology to complete their transactions.

The brokerage has been honored with numerous awards including being named the fastest growing real estate company in the United States, out of 80,000 brokerages in REALTOR Magazine (2005). Gino Blefari Intero's president and chief executive officer, and chairman Bob Moles were also given the ‘RISMedia National Home Ownership Award’ at the 2007 NAR Conference & Expo for ‘outstanding achievements among residential real estate's most influential and charismatic leaders.’

The Intero goal is to expand their franchise model, and to build market share and a strong brand footprint around the globe. Intero Real Estate Services, Inc., through its affiliate Intero International Franchise Services, LLC is expanding in Asia through the sale of master franchises. Master franchise agreements will, grant exclusive rights within a territory, allow master franchisees to build real estate franchise networks and operate company owned offices.  We seek to affiliate with the most qualified and well-capitalised entrepreneurial individuals and entities with franchising licensing and/or real estate experience. Intero International Franchise Services, LLC is led by its president, Javier Parraga, who has over 20 years in real estate franchising and in just over 13 years is credited with successfully negotiating and signing more than 100 master franchise agreements covering over 150 countries and territories.

I have the honour to implement the Intero expansion effort in the Asia Pacific region as managing director of Intero Asia Pacific. Over the course of a 10-year career involving franchise development, I have been honoured as an accomplished deal maker with expertise in mergers/acquisitions, financial analysis, new business development and sales strategies. As a former vice president of International Development for real estate conglomerate Realogy Corporation, I was responsible for the development of Century 21, Coldwell Banker, ERA, and Better Homes and Gardens real estate brands throughout Asia Pacific. I have been recognised for the success of numerous mergers/acquisitions and completed over 40 U.S. and international franchise agreements. Intero Asia Pacific is an independent partner of Intero International Franchise Services, LLC in the Asia-Pacific region.

iProperty: How do you, as the managing director of Intero Asia Pacific, view the current real estate market climate in the region?  

Mendoza: Overall, the Asia Pacific market climate is very positive. There are nearly three billion people and several million home sales annually in the region.

Specifically in Hong Kong, the housing price index rose over 13% this year and sales numbers have steadily increased. The country has benefitted from an influx in buyers and investors from mainland China, a series of stimulus packages from the government and relatively low interest rates which all have contributed to the rise in prices. The housing market in Hong Kong took a hit during the global financial crisis, but after falling 17% from June-December 2008, the residential price index rebounded and rose by 20% from the previous year’s bottom, according to the Ratings and Valuation Department (RVD).

Singapore, also a central gateway for the region, ranks as the number two investment in 2009 and has experienced a complete turnaround from reports and prospects earlier this year. New developments are selling as fast as they hit the market and property prices have continued on an upward trend, expected to close 2009 on a strong note. According to PropertyWire, private sector developers launched 2,878 new flats in July 2009, an all time high, and 2,767 of them were sold out within a month. Further, sales of new luxury developments in Singapore’s reclaimed areas on the offshore island of Sentosa, where prices average SGD2,000-SGD3,500 per square foot, are reported to be steady.

For Malaysia, investors and expatriates have been flocking there due to a low cost of living and mild weather. Federal incentives designed to draw foreigners have been beneficial for investors in recent months, and while other countries in the region have experienced price declines as a result of the financial crisis, Malaysia’s properties have remained steady. Malaysia’s advantage is that current interest rates are at a 25 year low and developers of new buildings have been more flexible and willing to throw in incentives at no additional cost.

iProperty: Where would the key real estate growth areas? How about for Malaysia, Singapore and Hong Kong?

Mendoza: Hong Kong’s growth areas would be in the luxury markets, where foreign investors, particularly from mainland China buy with cash, and across rental properties, which have enjoyed a good margin with rental income for investors. So, for Hong Kong I feel there would be a strong showing across residential and commercial properties.

Singapore continues to experience record sell-outs of new properties and units are sold before the ink has dried on their listings. I predict that foreign investors in commercial properties, as well as a new, young generation purchasing residential units and homes will keep the market steady, if not drive it up. Singapore is facing another record year of sales volume, and this goes across residential, commercial and industrial.

Malaysia is still on a push to promote itself as an international retirement destination, is likely to revamp its Malaysia My Second Home (MM2H) program. The MM2H program, which attracted over USD1 Billion to the property sector in total, is now looking beyond the average retiree or international property buyer, and is going after high net-worth individuals who may be willing to invest large amounts of capital into the economy. I would see the primary growth area here to be residential.

iProperty: What is the Intero experience like? How does customers benefit from dealing with the company?

Mendoza: The Intero experience is like none other. It is a revolutionary approach to real estate that starts at the core: with its franchisees.

The Intero advantage exists within its franchising support. Three regions worldwide each have, or will soon have, their own managing director/executive director who will not only responsible for finding qualified master franchise candidates but will be accountable for acting in a consultative manner to assist master franchisees grow their business. The consultative approach helps them grow their business by adapting the platform to accommodate local laws, customs and business as well as support through quarterly on-site consulting visits targeted at helping to grow their businesses and make the most of the technology platform. The Intero platform offered to franchisees is fully integrated and covers marketing, technology, and comprehensive training.

Response, thus far, has been positive. There is interest in breaking through the clutter and expanding a different kind of franchise network. Intero looks to work with the best, and we select well-capitalized entrepreneurial entities with franchising, licensing, and/or real estate experience. They need to have a long term horizon (10 years) and a commitment to build the business.

Once established, the Intero experience extends to agents and salespeople who work in the system. The Intero culture has helped to attract market leaders, top agents and managers who drive the success of the offices and extend the Intero culture onto home buyers and sellers, and property investors. Intero is an Italian word that translates to ‘entire’, and it is meant to represent the company’s philosophy of empowering people – clients, agents and employees – to achieve what they want in all aspects of their lives.

iProperty: What are the good habits that real estate buyers must have and why?

Mendoza: Real estate buyers need to be savvier than ever, and use all of the tools at their disposal. With increased globalisation, buying properties overseas (for personal use or investment) is becoming commonplace.

Gone are the days where buyers had to fly somewhere and spend days searching through paper listings and following real estate agents around to countless properties. The Internet has enabled everything from direct access to Multiple Listing Services (MLS) to virtual home tours and detailed photos. Working virtually with a broker is becoming accepted practice, and things like digital signatures have made the paperwork process more seamless.

The Intero strategy syndicates listings to search engines like Trulia, Zillow, Google Maps Real Estate, and Yahoo Real Estate, and has pulled out of all print advertising and featured listings. Since syndication, Intero has created an online footprint that draws more traffic than any newspaper/print advertisement while experiencing no dip in traffic. This marks a fundamental shift in the way real estate services are delivered, and it puts our franchisees ahead of the curve.

At the heart of the Intero marketing plan is social media. Intero hosts two blogs: http://interoreblog.com, information on marketing and real estate trends for consumers, and http://interomojo.com, inspiration, better business practices and Cool Apps (free tech tools and tips) for brokers/agents. Intero also has weekly email blasts and integrated usage of Facebook, Twitter, and LinkedIn. So, it is critical that today’s buyers understand what the Internet can afford them – and that they engage with the online entities that can help them get the most out of their buying experience.

Finally, it is important for buyers to educate themselves on the purchasing process, and to align themselves with strong agents and reputable real estate brokerages. Intero Real Estate Services, Inc. and Intero Asia Pacific are committed to offering the latest in training, technology and tools to their franchisees, so that buyers and investors can have the peace of mind that they are being represented by the best in the industry.

Footnote:

For more information on franchising with Intero International Franchise Services, LLC please contact Al Mendoza at amendoza@interorealestate.com.