Commentary: Outdated knowledge, not technology, is the real threat to property agents

Singapore's property agents face a new challenge as the industry seeks to raise its professional standards amid the rise of technology-driven consumer expectations. Currently, most consumers appear content with their property agents, with 92% satisfaction reported in 2024, up from 77% in 2021. However, the increase in complaints, from 1,126 in 2023 to 1,271 in 2024, indicates that more stringent minimum standards may still be necessary.

The Council for Estate Agencies (CEA) announced a new requirement for property agents to complete at least three qualifying transactions or pass a refresher examination to retain their license from 2027. This rule aims to ensure agents remain active and knowledgeable about current rules and procedures. It targets agents who have been inactive for extended periods, emphasizing the need for recent experience in navigating complex financing conditions, eligibility rules, transaction procedures, marketing standards, and anti-money-laundering obligations.

Despite concerns about potential fraudulent practices, such as agents "borrowing" transactions from others, the CEA believes that such cases are likely to be infrequent. In fact, the number of property agents has reached an all-time high of 38,162, with a significant growth in registrations since 2017. Meanwhile, the volume of residential rental and sale transactions has decreased slightly from approximately 206,000 to 185,996 over the same period.

While the new rule may lead to a slight reduction in the number of registered agents, it is unlikely to result in fee increases for consumers. The market is expected to maintain a sufficient number of agents to facilitate transactions, even with some agents leaving under the new requirement. Additionally, measures are being considered to improve commission transparency and reduce the prevalence of inaccurate or fake property listings, thereby empowering consumers to make informed decisions.