Christie’s International Real Estate expands footprint in Asia with affiliates in Japan, Thailand
By Cecilia Chow
/ EdgeProp |
Last month, Christie’s International Real Estate announced that it had expanded its presence in Asia-Pacific with the addition of two new affiliates in Japan and Thailand. This brings its network in Asia-Pacific to five countries, namely Australia, Hong Kong, Japan, Singapore and Thailand.
“It was only over the last four years that we have really expanded our presence in Asia,” says Zackary Wright, Christie’s International Real Estate executive director of Asia Pacific and Western North America.
Priceless art and luxury real estate have a common denominator: high-net-worth clients, says Wright.
The luxury homes in the prime Jervois and Bishopsgate neighbourhood (Credit: Samuel Isaac Chua/The Edge Singapore)
Record sales
November was a spectacular month for the storied Christie’s auction house: Leonardo da Vinci’s Salvator Mundi was sold for a record- breaking US$450.3 million ($607 million) at Christie’s postwar and contemporary sale in New York on Nov 15 after 19 minutes of intense bidding by four bidders.
At Christie’s Hong Kong Fall Auction at end-November, HK$3.43 billion ($591.7 million) in sales were done under the hammer. A 14.93-carat pink diamond, referred to by Christie’s as “The Picasso of the Pink Diamond world”, went for US$31.86 million, or US$2.13 million per carat at Christie’s Magnificent Jewels auction in Hong Kong on Nov 28.
Several affiliates of Christie’s International Real Estate from Asia, US and Europe flew to Hong Kong in the week leading up to the Fall Auction. “We literally had thousands of people coming to the exhibition,” recounts Wright. “We had the Christie’s International Real Estate booth exhibiting alongside Chinese contemporary art and the pink diamond.”
This is why Dave Loo, managing director of SQFT Global Properties and Singapore Christie’s International Real Estate, tries to hold a property event in conjunction with Christie’s auctions in Hong Kong. “It certainly helps create awareness and gives us access to many more international buyers,” he says.
According to Wright, there is a lot of synergy between luxury real estate and luxury goods. Expanding Christie’s International Real Estate’s network in Asia is a natural move for the company as many of its buyers in the US, Europe and the Middle East are Asian. “We’re also interested in dealing with Asian buyers in other markets globally, particularly Chinese buyers,” says Wright. “Almost everywhere we are, they are our biggest buyers.”
Wright: We had the Christie’s International Real Estate booth exhibiting alongside Chinese contemporary art and the pink diamond (Credit: Christie's International Real Estate)
Access to new markets
Christie’s International Real Estate wants to handle the luxury property business on a local and regional basis in Asia, where many of the projects are specific to Asian buyers, adds Wright.
In Japan, Christie’s International Real Estate affiliate Japan Capital Realty operates in Greater Tokyo and Kyoto. It will therefore tap the demand from both local and international high-net-worth individuals as well as institutions that seek to buy or sell luxury homes in Japan and abroad.
Bangkok-based Richmont’s Luxury Real Estate is said to have been a market leader in Thailand’s high-end real estate for more than 15 years. The firm will be rebranded Richmont Christie’s International Real Estate to reflect the affiliation.
“It definitely helps to have an affiliate in Japan,” says SQFT Global’s Loo. “Japan is a closed market, and having someone who understands the language and culture will certainly help.”
Loo founded SQFT Global in 2010. It specialises in marketing overseas properties. Since then, the firm has established an extensive network across the region — in China, Hong Kong, Indonesia, Malaysia, Thailand and Taiwan. Japan is a market that SQFT Global is yet to have a presence in.
SQFT Global participated in an event in Japan recently, showcasing properties from Malaysia, the Philippines and Thailand. There was a lot of interest not just from individual Japanese investors but also Japanese developers, who are increasingly looking at developing property overseas, notes Loo. “With an affiliate in Japan, we can introduce Japanese developers to those in overseas markets,” he points out.
Loo: Having the brand helps in penetrating the upper tier of the Singapore residential market (Credit: Samuel Isaac Chua/The Edge Singapore)
Competition
A competitor of Christie’s in the art auction world is Sotheby’s. However, Sotheby’s International Realty has inked a 100-year franchise agreement with New York Stock Exchange-listed real estate services provider Realogy Holding Corp that took effect from 2004. Besides Sotheby’s International Realty, Realogy holds the franchise for Better Homes and Gardens Real Estate, Century 21, Coldwell Banker and ERA as well.
In March, Sotheby’s International Realty rolled out an Asia-wide strategy through its affiliate, Japan’s Yokohama-based List Co, a real estate developer, builder and brokerage services company. List Sotheby’s International Realty’s brokerage franchise started in Japan in 2009 and then expanded to Oahu, Hawaii.
List Sotheby’s International Realty acquired the franchise rights in Singapore in December 2015, followed by Thailand and Hong Kong. It also owns the franchise in the Philippines, where operations began last September. The Singapore office officially opened in March, while that in Hong Kong opened in September and the one in Thailand is slated to open by year-end.
Christie’s, on the other hand, is owned by billionaire François Pinault via his holding company Artémis, which in turn controls Kering (formerly known as PPR) and owns luxury brands such as Gucci, Saint Laurent and Balenciaga.
Brand reputation
“Christie’s auction house and our parent company are very sensitive about our brand,” says Wright. “We can’t associate with anyone who may ruin the reputation of our network. So, we have to find local brokerages that are like-minded and have the same ideals of trust, market knowledge and willingness to uphold the Christie’s brand.”
This year, Christie’s International Real Estate also expanded its global reach to four other countries: the Czech Republic, Slovakia, Mexico and Peru.
SQFT Global’s Loo became the Singapore affiliate of Christie’s International Real Estate in September 2013. Over the past four years, Singapore Christie’s International Real Estate, together with SQFT Global, has showcased high-end properties such as Wheelock Properties’ Ardmore 3 and Scotts Square, Wing Tai Holdings’ Le Nouvel Ardmore, Kajima Overseas Asia’s Bishopsgate Residences, City Developments’ Gramercy Park and KOP Properties’ Ritz-Carlton Residences in roadshows in Hong Kong. It has also showcased Bishopsgate Residences and United Industrial Corp’s Mon Jervois in Kuala Lumpur.
Singapore Christie’s International Real Estate is also marketing luxury properties such as the $48 million Copper House in Sentosa Cove. Last year, it brokered the sale of a Good Class Bungalow on Dalvey Road for $25.5 million.
Having the brand helps “in penetrating the upper tier of the Singapore residential market”, says Loo.
Singapore Christie’s International Real Estate brought Bishopsgate Residences on roadshows in Hong Kong and Kuala Lumpur (Credit: Samuel Isaac Chua/The Edge Singapore)
This article, written by Cecilia Chow, appeared in EdgeProp Pullout, Issue 809 (Dec 11, 2017).
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