GLOBAL property portal Lamudi has acquired a controlling stake in local real estate portal MyProperty.ph to create the country’s leading online property marketplace.
The two web-based real estate portals announced on Tuesday a consolidation that seeks to strengthen the domestic online property market. However, the two companies will continue to operate separately, as each caters to a different audience and both seek to grow their existing brands in the country’s thriving online property sphere.
While changes at an operational level will be limited, top officials said on Tuesday that the acquisition would result in knowledge-sharing between the two businesses and improvements to the overall customer experience for online property-seekers.
“By acquiring MyProperty, we are combining the two strongest players in the Philippines to create the go-to destination for both house-hunters to find their new dream home, and for brokers and developers to market their properties online,” said Kian Moini, Lamudi Global’s co-founder and managing director.
The two portals have 300,000 in combined property listings. MyProperty, a five-year-old real estate portal, has 210,000 while Lamudi has 90,000 listings, said Lamudi Philippines managing director Jacqueline van den Ende.
“They are two different brands facing different personas,” said Butz de Castro, general manager at MyProperty.Ph, which he said was catering to a whole gamut of real estate players.
MyProperty.Ph started posting assets of private sellers than agents and eventually increased its focus on inventory offered through pre-selling. It also lists properties for sale and for rent. It has also started publishing a magazine providing relevant property industry news and information.
On the other hand, Lamudi is more focused on the re-selling of assets and works only with licensed real estate brokers.
This deal is thus seen consolidating the market to improve the value provided to all Lamudi and MyProperty users, whether they be house-hunters, real estate brokers, and developers. This added value is seen in terms of an increase in the number of quality listings by merging the controlled content.
The consolidation is also seen to help professionalize the online real estate market by strengthening relationships with developers and brokers’ associations, the government sector and other industry organizations.
“With a rapidly rising Internet penetration rate and a tech-savvy population, Lamudi is committed to become the leading portal in the Philippines,” Moini said.
Van den Ende said Lamudi was generating 25,000 to 30,000 “leads” per month, referring to online inquiries whereby the portal is able to collect potential buyers’ contact details that could be referred to the property sellers and developers. Asked how many of these leads translate into actual sales, she said these could not be quantified for now as all transactions were finalized directly by the buyers and seller outside the website.
Lamudi earns by generating such leads for brokers and developers which pay for the online marketing services, from fees paid by people who pay for subscription and for extra number of listings of websites as well as from accepting advertising materials.
Lamudi Philippines is part of the global Lamudi network, which covers more than 30 countries across Asia, Africa, the Middle East, and Latin America. The local branch currently hosts more than 80,000 residential and commercial property listings.
In February this year, Lamudi Global received 16 million euros (US$18 million) in fresh investment to expand its operations in Asia and Latin America. In Asia, Lamudi is currently market leader in Myanmar and Bangladesh, while the Philippines is seen as a key market for the business.