Wednesday, June 18, 2014

Launch of Rental X-Value to Improve Efficiency in Singapore Real Estate Market

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Singapore Real Estate (SRX) is pleased to announce the launch of its newly invented Rental X-Value, which is unavailable elsewhere.  SRX is the market’s leading information exchange on property transactions and market pricing.

Rental X-Value is a computer-generated estimate of a home’s rental value. Landlords, tenants, and agents use it as a guide for establishing rent.

To calculate the Rental Value for a home, SRX computers employ a best practices methodology based on Comparable Market Analysis (CMA). StreetSine Technology Group, which powers SRX, developed the calculator’s algorithms in partnership with academics, government agencies, and leading valuers.  It draws on data from over 30 public and private sources.

“May to August is the traditional peak season for rental.  As such, this Singapore innovation could not have come at a better time. It helps improve transparency and efficiency in the Singapore residential rental market,” said Jeremy Lee, co-founder and chief technology officer of SRX.

The Rental X-Value is the starting point for determining rent. We strongly recommend that you work with a qualified real estate agent who has the similar transactions and adjustments that went into the calculation,’’ Lee added.
When comparing recent transactions for a particular unit, SRX algorithms adjust for differences and exceptions, including floor level, size, and rental date. The calculation uses the SRX Price Index for Rentals to adjust for disparities in rental contract dates.

“Rental X-Value is a game-changer,” said Lim Yong Hock, PROPNEX Key Executive Officer, “For the first time agents and their clients will have a clean accounting of the relevant rental transactions so that they can arrive at a fair rent.”

“This will make transacting in the rental market much more efficient because both landlord and tenant will have a similar understanding of pricing as it pertains to the market environment,” added Eugene Lim, ERA Key Executive Officer.

 “Tenants will be able to establish fair market values for rents,” said Sam Baker, co-founder and chief executive officer of SRX. “Landlords will be able to evaluate and manage rental yield with great accuracy. Accountants and government authorities will have a more transparent basis in which to assess rental income. Finally, public policy makers and researchers will gain a better understanding of the dynamics of the rental market and its impact on housing in Singapore.”

“Rental X-Value is another example of how the leading estate agencies have worked together, on their own initiative, to improve the transparency and productivity of the overall property market,” said Denka Wee, Head of Business Services for DWG.

Rental X-Value is a companion calculation to the recently launched Sales X-Value, the estimated market value of a home.  SRX’s Sale X-Value has since become a market standard for pricing property.

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