Property Asset Management: Strategies to Increase Occupancy Rate

This research report focuses on finding the reasons behind low occupancy rate of a building in Singapore and proposes strategies to increase it. Conducted SWOT analysis and suggested risk management tools for property asset management.

Running Head: Property asset management 0
Property asset management
7/21/2018

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EXECUTIVE SUMMARY
This research report is all about to find out the factors that are responsible for the less
occupancy rate of the building. SWOT analysis is conducted here to analyse the internal and
external environment. After analysis of the market, various strategies are also formulated to
increase the occupancy rate of the building. Proposed improvements are also suggested that
helps in increasing the occupancy rate of the building situated at park orchard area of the
Singapore, also suggested risk management tools for property asset management.

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TABLE OF CONTENTS
EXECUTIVE SUMMARY........................................................................................................1
TABLE OF CONTENTS...........................................................................................................2
INTRODUCTION......................................................................................................................3
METHODOLOGY.....................................................................................................................3
MARKET ANALYSIS..............................................................................................................3
Key considerations to keep business sustain:.........................................................................5
Strategies that can be followed to increase the occupancy rate of the commercial building:5
Risk management in property business:.................................................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

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INTRODUCTION
Property Asset manager keeps the entire assets on track. Property asset manager in case of
these buildings takes the following actions; where to locate the particular asset, how to use,
what changes have to made and many more. Property asset management includes acquisition
of property and its disposition also, determining value of asset, market an asset to increase its
value (JIL, 2018). Property asset management is very important in real estate business. Proper
management of property provides consistent revenue sources, decreases the spending, and
decreases the risk and liabilities (Scarrett & Wilcox, 2014). Here less occupancy rate of the
building is the issue, so research is conducted to find out the reasons behind less occupancy
rate of the building, and focuses on, how to increase an occupancy rate of building situated
Orchard road Singapore through various strategies and tactics.
METHODOLOGY
Research conducted here is descriptive research; there are two types of sources of data one is
primary and another is secondary, here research is totally based on secondary source of data.
MARKET ANALYSIS
Market overview: Properties in Singapore is on the verge of growing. It is challenged by
economy of country, demand and supply differences and many more challenges. Housing
projects are increasing rapidly and they are also occupied within a week of launch. But some
of the commercial buildings remain vacant throughout the year, because of lacking in
amenities, location, appearance and many more factors.
Strengths:
 Good location of the buildings, as buildings is located at Orchard road of Singapore.
 Buildings have good access to the facilities like, retail component, offices and gym.
 Buildings also have nearby parks and connectivity to main roads.
 Buildings have connectivity to the shopping malls, banks and post offices (BMI,
2018).
Location and view of building

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(Source: Singapore expats, 2014)
Weaknesses:
 Poor maintenance of the building.
 Cleaners of the building are always late.
 Height of the building is too high, that led to the shortness of breath and many
diseases.
Opportunities:
 Buildings use new technology.
 Partnership with other builders.
 Increase in demand of rental flats is the opportunity for these buildings located at
Orchard Road, Singapore.
 Innovation in the apartments.
Innovation and expansion
(Source: A.1 BUSINESS PTE LTD, 2016)
Threats:
 Entry of new real estate rivalries in the locality or market.
 Threat of existing rivalries, some of them is, Chye Seng Construction Pte Ltd., Vinci
Construction Grand Projects.
 Rapid change of technology
 Security of the buildings
 Privacy of the buildings

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(Source: RCLCO, 2015)
Actions taken to improve the conditions of the buildings:
 Introduce new maintenance policies for the buildings that include, cost effective
services for the maintenance of buildings, best services to be provided to residents of
the buildings.
 Introduce new work structure which includes overall inspection of the building, safety
and preventive actions.
Key considerations to keep business sustain:
These are the following key considerations that can keeps the real estate business sustain for
a long, explained below:
Operational efficiencies: Asset manager of these buildings has to use the resources
optimally to lower the cost and saving the time. The action taken by asset manager of the
buildings is to assure the workplace culture and environment of the buildings located at
Orchard road of Singapore. Company also has to lower its staff, as over staffing led to the
inefficiency (Bigger pockets, 2018).
Sound decision making: Asset manager of these two buildings has to take sound decisions.
Action taken by the asset manager of these two buildings is, to make the decision in keeping
the customers in consideration, because customers are the only one who are going to
purchase or taking on rent.
Great leadership: Actions taken by asset manager of these buildings are: appoint great
leaders who will drive the alignment of objective of company towards achievement.
Company should appoint great leaders who will ensure the success of business.
Strategies that can be followed to increase the occupancy rate of the commercial
building:

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Research: Research is conducted to find out the competition available in the market. Rents
are keeps on changing monthly, and in this case owner of the building should find out that
what their competitors are charging for similar flats in the same locality (Linked in, 2018).
Marketing: Online marketing plays a vital role in advertisement of rental buildings; this can
be done through various methods like, search engine optimization, email, SMS, social media
marketing, blogging, YouTube, and many more (McKnight senior living, 2018).
Realtors: If the builder is facing the problem of occupancy of its building, so they can hire a
realtor, who can help in letting out the apartments. Realtor is the person who is familiar with
the market and expert in making the marketing strategies that ultimately helps in successful
implementation of the market plan, and in case of property asset management it results in
letting out of units situated at central location of the city in Singapore (Rent ping, 2018).
Concessions: Everyone wants to earn profit, but sometimes situation arises where owner
have to intentionally go for loss. Builders let out their buildings on concessions, to deal with
their competitors in the marketplace (The urban developers, 2018).
(Sources of finding property)
(Source: National Association of relators, 2018)
Risk management in property business:
Risk management in real estate business plays very crucial role. Asset manager of the
building manages the risk. In the above case of these two buildings risk management includes
development and incorporation of protective strategies to make the business successful (The
Rubin group, 2018).Following is the key points that help in manage the risk:
 Procedures of standard should be consistent

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 Records should be kept properly
 Inspection of building units and warranty
 Communication within the staff
CONCLUSION
It is concluded from the above report that, management of commercial property is very
crucial, management of asset is very important for the company, as this gives the direction for
the proper use of it, and keeps check on the earning from that particular asset. In case of
commercial property, best strategies to be formulated to increase the occupancy rate of the
building situated in the Singapore. Innovation in the building, appearance of the building,
close proximity with parks or gardens is few of the measures customers or tenants are looking
for. To increase its occupancy rates owner or builder should use digital marketing as its tool.
Methods that can be followed are, search engine optimization, social media marketing, email,
blogging and many more, these measures will results in making aware the people about your
building or apartments. Risk management is very crucial for real estate business.

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REFERENCES
BMI research. (2018). Singapore real estate. [online] Available from:
https://store.bmiresearch.com/singapore-real-estate-report.html [Accessed 21/07/2018]
BUSINESS PTE LTD. (2016). Real estate property statistics [online] Available from:
https://www.a1corp.com.sg/contact-us/ [Accessed 21/07/2018]
JIL. (2018). Property and asset management. [online] Available from:
http://www.jll.co.in/india/en-gb/services/investors-and-developers/property-and-asset-
management [Accessed 21/07/2018]
Linked in. (2015). 5 tips for increasing occupancy rates at your apartment complex. [online]
Available from: https://www.linkedin.com/pulse/5-tips-increasing-occupancy-rates-your-
apartment-complex-piller [Accessed 21/07/2018]
McKnight senior living. (2018). 5 ways to increase occupancy through marketing [online]
Available from: https://www.mcknightsseniorliving.com/news/5-ways-to-increase-
occupancy-through-marketing/article/754581/ [Accessed 21/07/2018]
National Association of realtors. (2018). Quick real estate statistics [online] Available from:
https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics [Accessed
21/07/2018]
RCLCO. (2015). Statistics of properties [online] Available from:
http://www.rclco.com/advisory-vacation-home-trends-pt3 [Accessed 21/08/2018]
Rentping. (2018). How to market apartment communities at 100% [online] Available from:
https://www.rentping.com/apartment-marketing-ideas-blog/apartment-marketing-ideas-100-
percent-occupancy [Accessed 21/07/2018]
Scarrett, D. & Wilcox, J. (2014). Property asset management (4th ed). France: Rout ledge
Singapore expats. (2018). Singapore property search [online] Available from:
https://www.singaporeexpats.com/ [Accessed 21/07/2018]
The Rubin Group. (2018). Risk management in real estate [online] Available from:
https://www.therubingroup.com/risk-management-strategies-for-real-estate-agents/
[Accessed 21/07/2018]
The urban developer. (2016). Strategies to increase occupancy [online] Available from:
https://theurbandeveloper.com/articles/5-ways-increase-commercial-occupancy-rates
[Accessed 21/07/2018]