Home » News » CBRE told ads for off-plan property investment units with ‘estimated ROI’ must be proven previous nextRegulation & LawCBRE told ads for off-plan property investment units with ‘estimated ROI’ must be provenComplaint against property consultancy is upheld by advertising watchdog over estimated ROI of up to 4.9% quoted in online brochure.Nigel Lewis10th October 201802,790 Views Leading property consultancy CBRE has been told not to advertise off-plan investment properties using estimated rental values and gross returns unless they can substantiate their claims, and that the figures used to do so must be clear in the ads.This judgement throws a considerable spanner into the property investment sector which until now has been able to make largely unsubstantiated claims about return on investment.The Advertising Standards Authority (ASA) received a complaint about an advert CBRE had published online for a newbuild tower it was marketing in The City called One Crown Place, EC2., which is being built by Malaysian firm AlloyMtd.In a section marked ‘key facts and services’ a link loaded an online brochure that made claims for estimated gross yields at the development of up to 4.9% depending on the property size.Property investmentThe complainant said they did not believe these yield figures were representative of the market in the area, and said the way they had been calculated had not been made clear.CBRE then made detailed representations to the ASA saying it was confident of the figures and that they had been based on 11 recent tenancies at a nearby and comparable development called The Heron using data from Lonres and Rightmove.“The CAP Code requires that the basis used to calculate any rate of interest, forecast or projection must be apparent immediately,” the ASA says.But the ASA has upheld the complaint, saying CBRE had not explore the criteria on which it had picked properties in The Heron to compare its developments with, that the prices within the Rightmove data were asking not sale prices. It also said the CBRE had not provided evidence of how it calculated the estimated rental value or gross returns.“We told CBRE to ensure that similar ads in the future did not quote estimated rental values and average gross yields from letting properties, unless they held adequate evidence to substantiate the claims.“We also told CBRE to ensure that the basis used to calculate the estimated rental values and average gross yields were made clear in the ads.”Read more about recent ASA judgements.One cRown place advertising standards authority ASA CBRE October 10, 2018Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021
recently, intime heavy into e-commerce information, so that the original undercurrent of general merchandise industry once again face the new e-commerce business model ".
by the Ministry of Commerce Department to encourage enterprises to enter the electronic commerce "warm Jin", the private department stores intime appropriate "speculation" a. However, it is worth pondering that the Ministry of Commerce has been encouraged by the state department store is still silent, has not launched a specific plan. In this new field to e-commerce for enterprises, state-owned department seems to be behind the beat. February Ministry of Commerce convened the leading domestic department store industry, the important issue of the meeting is to support the leading state-owned department stores into e-commerce. Is to support enterprises, Wangfujing department store, Wuhan hundred, Shanghai Bailian heranzailie. According to the relevant parties, the "focus on training object" is the state-owned enterprises in the field of electronic commerce department Xiaoyouchengjiu performers. The store has electronic commerce mode of Wangfujing – and Guangzhou, Wuhan hundred is independently owned shopping channel.
however, the Ministry of Commerce before receiving the "indicator", Wangfujing, Wuhan Zhongbai seems to have no intention of e-commerce bigger. The Wangfujing and the Wuhan hundred, e-commerce companies can not bring real benefits, but is an important aspect of cost. In their view, e-commerce is seen as a provider of information services platform. For the traditional department store industry, the current e-commerce model is indeed some new. E-commerce is not simply the store’s sales model simply moved to the network, but the need for another set of people Malay operation. At the same time, online and offline easy to form price mutual fight also let all the traditional department stores embarrassing. How to coordinate the two men, to achieve maximum profit, and not waver in determination in pricing and sales strategy, which requires careful pondering.
department store industry to enter another factor in e-commerce, the department store itself is just a sales channel, do not have a brand. In e-commerce rampant today, brand vendors have opened up the network sales channels. Department store into e-commerce enterprises not only have to face to the Internet as the leading taobao.com, dangdang.com, Jingdong store competition, at the same time, but also with the fight hand to hand with the supplier. How to coordinate the relationship between suppliers, but also to the department store headache.
state department stores in the face of such a complex situation really need to ponder, as in Wuhan and Wangfujing department store said, is studying the relevant countermeasures, the group will increase investment, but for formulating the strategy of time, the big two is not good responded". In fact, restricting the development of e-commerce is the key to logistics, which is the biggest advantage of the department store industry. Department stores have not only to ensure that the store has a sense of customer experience, but also for the enterprise to solve the problem of commodity procurement, management, warehousing, logistics and distribution and after-sales service.
is worth mentioning is that the State Department of enterprise is not bad money, Wuhan in 2010 announced a quarterly show, up to 1 billion 500 million yuan of money on their books.