More people have been drawn to the industry by rising property prices and “attractive” commissions, said Professor Sing Tien Foo from the National University of Singapore (NUS).
Currently, there are no set rules for commission rates but property agents typically ask for between 1 and 4 per cent of the transaction price, depending on who they represent and the property type.
At ERA, the average annual income of a new agent under the age of 35 and with at least one transaction was S$30,000 last year. For those who made it to the top 5 per cent within the agency, the figure was S$170,000.
These numbers are lower than that in 2021 but things seem to be looking up, with interest rates now falling and developers lining up more new projects, said ERA’s key executive officer Eugene Lim.
Also burnishing the property agent’s appeal as a profession is how it’s shed the image of a “cowboy” industry, after CEA was set up as a regulatory body in 2011, said Mr Adam Wang, president of the Singapore Estate Agents Association (SEAA).
As part of the regulatory regime, all new property agents must take a preparatory course and pass an exam before they can be registered with CEA. The exam has been described by industry players as tough, with a passing rate of about 60 per cent.
“As it is not easy to pass the exams and maintain the high standards to renew the licence, (the property agent) is now a much-coveted profession to a rising number of graduates,” said Huttons Asia’s chief executive officer Mark Yip.
Their work has also evolved “beyond just being a salesman” to requiring different skills ranging from digital marketing to financial analysis, said PropNex’s chief agency officer Eddie Lim.
Put it all together and the work of realtor is “no longer seen as a side income gig”, ERA’s Mr Lim added.
AGENTS AND BUYERS: A LOVE-HATE RELATIONSHIP?
Yet, property agents have also come under fire for what some decry as flashy lifestyles being paraded online.
Take a video posted on ERA’s TikTok account last year. Titled “Asking millionaires how much is their outfit”, it features an agent introducing his branded clothing and accessories, which come up to an eye-watering total of S$54,700.
The clip has garnered nearly 200,000 views to date and going by the comments, not all netizens are impressed. One wondered about the purpose of the video and asked “(Are) we overpaying agents?”, while another called it “humble bragging at its finest”.
Mr Oh, the 28-year-old agent, was on the receiving end of similar criticism after revealing in an online video last year that he had amassed five properties under his name, and bought another three as gifts for his parents and wife.
He said the video, produced by his team at JNA Real Estate, was aimed at sharing his personal story and journey into property investment.
“I saw some of the comments in the online forums. That was tough,” said Mr Oh, with a smile.
“But my personal investments have helped me to achieve my goals, which is to give my parents a better life and they can now semi-retire because of passive rental income. So I am thankful for that and … I was trying to portray how real estate can be a way to better steward our wealth.”
He said he revealed his portfolio “not to show off”, but to build up personal branding. Sharing his own investing experience and successes has helped build trust with his clients, Mr Oh added.
SEAA’s Mr Wang also made the point that agents may showcase achievements or lifestyles to recruit team members or attract clients.
“Some customers prefer agents who are seen as successful.”
