Monika Tu: “I’m the best agent”

Kanebridge News: What Drives Monika Tu to wake up in the morning and work in property?

Monika Tu: I just want to do the best I can, get a couple more deals done — I just want to do another deal, take the commission, move to the next one. I just don’t want to waste time. I also have a lot of commitments to charities which drive me too.

KN: But why property, over another industry?

MT: The number one thing is the longer you’re in the industry, the better you get. With other businesses, you must buy and sell. For real estate, you don’t have to buy and sell, you just take this property, you put the strategy behind it, you work hard, you find the right buyer, you sell it, you get commission.

KN: The prime property market — in which you operate — has had little stock the last few years, how do you navigate that?

MT: When the stock is short you really must find your niche — ask yourself why do they [clients] want to work with you? I just have that unique selling point, that will just stand out amongst everybody else. We sell to local, maybe about 60% of our buyers are local buyers but that other 40% of international buyers — I corner that market.

KN: But right now there’s a shortage of stock in Sydney’s eastern suburbs, do you tell buyers to look beyond that? How do you manage a motivated buyer?

MT: I’ll give you an example. If somebody wants waterfront, the first question is how much you have? They go, ‘Oh, I’ve got 15 to 20 million dollars,’ or, ‘I want to buy for 30.’ Darling, to be honest, for that kind of budget, you want the eastern suburbs then you’re only buying a dream. Sometimes you just have to be flexible for change, and I’ll try and suggest waterfront in Northbridge or Mosman. Just because you have the money doesn’t mean you can get what you want.

KN: You’re the break-out star of season two of Luxe Listings Sydney. How would you describe the experience?

MT: I’ve done a lot of TV appearances in the past. I mean, I’ve been on Unreal Estate with Channel Nine. I’ve got global properties with the ABC. I’ve done quite a few in the past, I’m kind of a semi-pro. But Luxe Listings is a different level — I think Amazon has a much bigger budget and everything is so professional.

KN: And what of your co-stars? In the real world, away from the show, do they motivate you? Does someone like Gavin push you to be better?

MT: Nobody pushes me better because I think I’m the best. I think it gives us an opportunity to get to know each other — we get to know the real person rather than just a competitive agent. I think we probably bring the best out of each other.

KN: Why would someone do business with you over another agent?

MT: If you are desperate to sell, I won’t have the buyer for you. My [buyers] take time to understand the property and I take time to find the buyer who will pay the premium price. In the end, the buyer is happy and the vendor is happy. My brand is, ‘can I be your trusted advisor?’. With my clients, I think I’ve become more like their friend than their real estate agent.

KN: What do you think is the next big trend in the luxury real estate space?

MT: I think what is coming is the penthouse with the view. You see all the very wealthy Australians are older, 70-, 80-, 85-years old, so where are they going to go? That’s the ultimate retirement plan and for some of my Chinese friends — it’s quite easy to maintain.

KN: And what’s next for you?

MT: Well, I want to become a queen of the penthouse. Seriously, you watch me for two years, I tell you, I will get all the big penthouses in Australia. Also, season three of Luxe Listings and continuing to work with my charities.

blackdiamondz.com.au

Build-to-rent (BTR) residential property has emerged as one of the key sectors of interest among institutional and private high-net-worth investors across the Asia-Pacific region, according to a new report from CBRE. In a survey of 500 investors, BTR recorded the strongest uptick in interest, particularly among investors targeting value-added strategies to achieve double-digit returns.

CBRE said the residential investment sector is set to attract more capital this year, with investors in Japan, Australia and mainland China the primary markets of focus for BTR development. BTR is different from regular apartment developments because the developer or investor–owner retains the entire building for long-term rental income. Knight Frank forecasts that by 2030, about 55,000 dedicated BTR apartments will have been completed in Australia.

Knight Frank says BTR is a proven model in overseas markets and Australia is now following suit.

“Investors are gravitating toward the residential sector because of the perception that it offers the ability to adjust rental income streams more quickly than other sectors in response to high inflation,” Knight Frank explained in a BTR report published in September 2023.

The report shows Melbourne has the most BTR apartments under construction, followed by Sydney. Most of them are one and two-bedroom apartments. The BTR sector is also growing in Canberra and Perth where land costs less and apartment rental yields are among the highest in the country at 5.1 percent and 6.1 percent, respectively, according to the latest CoreLogic data.

In BTR developments, there is typically a strong lifestyle emphasis to encourage renters to stay as long as possible. Developments often have proactive maintenance programs, concierges, add-on cleaning services for tenants, and amenities such as a gym, pool, yoga room, cinema, communal working spaces and outdoor barbecue and dining areas.

Some blocks allow tenants to switch apartments as their space needs change, many are pet-friendly and some even run social events for residents. However, such amenities and services can result in BTR properties being expensive to rent. Some developers and investors have been given subsidies to reserve a portion of BTR apartments as ‘affordable homes’ for local essential services workers.

Ray White chief economist Nerida Conisbee says Australian BTR is a long way behind the United States, where five percent of the country’s rental supply is owned by large companies. She says BTR is Australia’s “best bet” to raise rental supply amid today’s chronic shortage that has seen vacancy rates drop below 1% nationwide and rents skyrocket 40% over the past four years.

Nerida Conisbee says the BTR market is Australia’s ‘best bet’ for addressing the housing crisis.

Ms Conisbee says 84 percent of Australian rental homes are owned by private landlords, typically mum and dad investors, and nine percent are owned by governments. “With Australia currently in the midst of a rental crisis, the question of who provides rental properties needs to be considered,” Ms Conisbee said. “We have relied heavily on private landlords for almost all our rental properties but we may not be able to so readily in the future.” She points out that large companies can access and manage debt more easily than private landlords when interest rates are high.

The CBRE report shows that Asia-Pacific investors are also interested in other types of residential properties. These include student accommodation, particularly in high migration markets like Australia, and retirement communities in markets with ageing populations, such as Japan and Korea. Most Asia Pacific investors said they intended to increase or keep their real estate allocations the same this year, with more than 50 percent of Australian respondents intending to invest more.

Monika Tu: “I’m the best agent”

A true force in real estate – the Black Diamondz founder talks Luxe Listings, prime markets and why penthouses are set to scale new heights.

Savvy high net worth players from Australia and Asia are getting on board as the residential landscape shifts