Commentary: Outdated knowledge, not technology, is the real threat to property agents
The new minimum transaction rule for property agents will help to raise the industry’s professional standards while protecting consumers, says industry observer Lee Nai Jia.
Outdated knowledge, not technology, poses the greatest threat to property agents according to Lee Nai Jia, industry observer. Singaporeans, who view their home as one of the biggest investments, rely heavily on agents for expert guidance on price and financing. However, the rise in technology and direct access to market data has altered consumer expectations of what a real estate agent can do.
A recent rule change aims to enhance professional standards by mandating that agents complete at least three qualifying transactions over three years or pass a refresher exam to renew their license from 2027. This follows concerns raised during industry consultations about agents becoming inactive. The new requirement recognizes the importance of recent experience, given the increasing complexity of financing, eligibility rules, and transaction procedures, among other factors.
While most consumers have positive experiences with property agents, the Council for Estate Agencies (CEA) recorded a rise in complaints from 2021 to 2024. Service-related issues still dominate complaints, accounting for 41%, but other areas like stale listings, inaccurate descriptions, and misleading prices are also on the rise. These issues can waste consumers' time and mislead them about market value.
The new requirement supplements existing annual training obligations and aims to ensure agents remain up-to-date with complex financing conditions, eligibility rules, transaction procedures, marketing standards, and anti-money-laundering obligations. However, there are concerns that inactive agents might misuse the new requirement by falsely recording transactions in their name. The Estate Agents Act prohibits submitting false or misleading information, which could help curb such practices.
Despite potential concerns, the number of agents registered in Singapore is at an all-time high. Even if some agents leave the industry, there should still be enough professionals to facilitate transactions, given the overall increase in residential rental and sale transaction volumes. The reduction in nominal headcount may even be healthy by reducing competition for leads.
However, additional measures are being explored to improve commission transparency and reduce inaccurate listings, ensuring consumers can make informed decisions.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
