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WHEN Vesper Homes entered the Singapore market in 2014, the boutique real estate agency’s clientele consisted primarily of expatriates looking for housing. This was a natural fit for chief executive officer Cyril Tuzemen, who moved here from France in 2011. Today, the agency serves local Singaporeans, corporate clients and commercial investors.

In Singapore’s saturated property sector, with close to 36,000 agents licensed to work in the market, Vesper Homes has managed to carve out a niche for itself by offering more than typical letting services. For instance, its agents also take on the role of property managers, helping owners with long-term maintenance.

Tuzemen has a distinct vision: “I am not interested in mass-market dominance. I want to maintain the boutique experience.”

He co-founded Vesper Group with partner James Cameron in the United Kingdom in 2014. The group also has offices in London, Manchester and Hong Kong. Believing that they could provide exclusive property management services unlike other companies here, they decided to open a branch in Singapore, which Tuzemen now helms.

With seven licensed agents currently, Vesper Homes plans to add another eight to 10 in the future. In 2024, the agency closed 248 deals, and is on track to grow that number by 50 per cent this year.

Leasing accounts for the bulk of its revenue. Revenue from leasing office space has increased from 70 per cent to about 80 per cent of its overall revenue in recent years, since the agency expanded its commercial activities.

The firm’s growth over the decade in operation has been driven by word-of-mouth referrals, says Tuzemen.

It has also developed an app for tenant-clients to deal with a common bugbear – unresponsive contractors. Tenants upload pictures of their home’s existing conditions when they move in and move out, and ask for assistance if there are defects.

Adapting to foreigners’ needs in Singapore’s market

While the Republic’s constant inflow of expatriates may seem like a quick meal ticket for the specialist agency, adapting to foreigners’ needs is not an easy task.

The homebuying process in Singapore, for example, can be vastly different from that in other countries, and foreigners need to be educated and prepared for it.

“They need to be ready with enough funds as the selling process is very fast and efficient. Launches can get crowded and hyper. Some may not be used to this environment,” says Tuzemen. He also sees foreigners investing in commercial properties in Singapore, with their eye on capital appreciation.

In April 2023, the Additional Buyer’s Stamp Duty (ABSD) for foreign buyers of Singapore residential property doubled from 30 per cent to 60 per cent.

While Tuzemen understands the rationale behind the move as a market cooling measure, he points out that for some families, the original 30 per cent stamp duty was already a stretch. It also reinforced the reality for many foreigners that they would need to obtain permanent residency to afford purchasing property in Singapore, he says.

He hopes that there could be an exception made for the small segment of Employment Pass holders who have been in the city-state for years.

“They see a future and want to settle down here, but are priced out. And getting permanent residency in Singapore is also difficult. So this situation may leave some people with no choice but to go back,” he adds.

The ABSD hike may have curbed most foreigners from buying properties, but Vesper Homes has been seeing growing interest from those holding US and Swiss passports, as they enjoy the same treatment as Singaporean citizens for their first property purchase.

Rents stabilising, but not quite a tenants’ market yet

In 2022, private residential rents jumped to record highs as pandemic delays led to a supply crunch, with median monthly rents rising 29.7 per cent over the year before.

This immediately boosted Vesper Homes’ commission-based revenue, lifting it by 30 to 40 per cent.

But the agency also saw a wave of people leaving Singapore because of the combination of higher rents and increase in other costs, such as education. It was not sustainable for some families to stay. “From a financial perspective, sure, it was great,” says Tuzemen. “But it was stressful and tiring for us, and for many other people.”

Rents eased back the next year, posting 8.7 per cent growth in 2023. Momentum slowed further in 2024, with the rental index falling 1.9 per cent.

However, Tuzemen is not calling it a tenants’ market. “While vacancies are up and prices are down, landlords can afford to keep their properties empty and hold out for longer for the price they want,” he explains.

Residential and commercial rents are now creeping back up. Tuzemen attributes this to the Republic’s popularity as a destination to live and work.

He remains optimistic about the Singapore market. “When the political climate is unstable in the world, like it is now, companies look to Singapore for its controlled climate,” he said.