Property agencies welcome new minimum transaction rule, seek safeguards for consumer ratings

SINGAPORE: The requirement for property agents to complete at least three transactions over three years to get their licence renewed is fair, said property agencies on Tuesday (Jul 28) as they welcomed the new measure. The move, in line with the extension of validity periods for all property agency licences and agent registrations from one year to three years, would help to raise industry standards, they added. “The industry expects this to happen,” said Mr Lee Sze Teck, senior director of data analytics at Huttons Group. He noted that the Council for Estate Agencies (CEA) had been engaging industry stakeholders on ensuring agents are up-to-date. Mr Lee said that the new measures – taken together with the requirement that property agents must complete 16 training hours per year to maintain their registrations – will raise the professionalism of property agents. “The consumer will also benefit because if the salesperson is current with the market, then they will be giving better advice to the consumer as well,” he said. Senior Minister of State for National Development Sun Xueling announced the new measures on Tuesday, along with several longer-term measures that are being studied, including allowing consumer ratings for individual agents. Agents who do not meet the transaction requirement can instead pass a refresher examination to remain eligible for licence renewal. Those who fail to meet the requirements and wish to return to the industry must retake and pass the real estate salesperson examination. While three in four consumers surveyed in CEA's 2024 Public Perception Survey expected their property agents to complete at least one property transaction per year, about 40 per cent of property agents do not meet this expectation today. “REASONABLE AND MEASURED” Chief agency officer at PropNex Eddie Lim said the minimum transaction is a “reasonable and measured” benchmark. This represents an average of one transaction per year. From 2023 to 2025, the median number of residential property transactions completed by each agent per year was two. This figure covers only residential property transactions as CEA does not currently collect information on non-residential property transactions. The new requirement also recognises different transaction types including residential, commercial, industrial, foreign property and en bloc transactions, Mr Lim said. “The measures should contribute to a more current, committed and professionally engaged salesforce,” he said, adding that the framework provides different pathways for renewal. Ms Avril Lee, key executive officer of OrangeTee and Tie by Realion Group, said completing at least three transactions over three years demonstrates a “basic level of practical exposure”. The refresher examination provides an alternative structured pathway, especially for those who balance the profession with other commitments or specialise in niche, longer-cycle deals where transaction frequency is naturally lower, she added. “But it is also important to note that professionalism is not defined by a single policy, or ticking the regulatory boxes,” she said. “It should be a combination of competency, ethics, accountability and continuous learning, and more importantly, a genuine commitment to the client. “An agent's value is also built on relationship-building and complex negotiations, which will also require significant time and expertise. “By ensuring agents stay active and up-to-date with industry practices, we are giving consumers the confidence that they are working with dedicated, current professionals.”

Along with the requirement, existing property agencies and agents will transition to a three-year licence or registration, up from the current one year. The first three-year cycle will run from Jan 1, 2027 to Dec 31, 2029. Mr Adam Wang, key executive officer of LandPLUS, said this would minimise the administrative workload for the 80-person property group. “Every year, when it comes to the renewal process, the amount of work just to handle the renewal can be quite cumbersome,” he said. He added that extending the validity periods for agent registrations will allow the agency to devote more resources and time to develop its agents professionally. SAFEGUARDS Mr Nicholas Mak, chief research officer at property platform Mogul.sg, said there could be a loophole in the transaction requirement, as an agent with more than the required number of property transactions may register transactions under the name of the inactive agent. For the majority of property transactions, CEA will recognise one property agent for each side of a completed property transaction. “Real estate agents are very creative people. They could work around the currency requirement by ‘borrowing’ property transactions from other agents who have completed more than three transactions during the registration period,” he said. “Since it is easier to ‘borrow’ the property transactions than to sit for the refresher examination, such private arrangements among property agents will become more common in the future.” Some property agencies also called for safeguards for the potential consumer rating of their property agents on the CEA public register. Currently, the register provides consumers with the licence and registration details of any property agency and property agent. Mr Wang said this measure stood out. “It could also open up risk whereby there could be reviews that are made impulsively or without much thought,” he said, although he noted that most consumers would use the rating service appropriately. PropNex’s Mr Lim said ratings should come with the “appropriate safeguards”. These include verified transactions, providing the proper context and allowing salespersons a fair opportunity to respond. There should also be clear processes to address inaccurate, malicious or misleading reviews. “The objective should be to provide consumers with reliable information through a framework that is transparent, balanced and fair to all parties,” he added.

PROPERTY AGENT NUMBERS As of Jul 1, there were 38,162 property agents and 1,018 property agencies in Singapore. Mr Mak said the size of some property agencies could contract with the new requirement. “These agents obtained their property agent’s licence years ago and do not wish to give up their licences because it is difficult to obtain it, even though they are not practising or working as property agents,” he said. Property agencies, however, said the focus is not on the number of agents, but the quality of their services. PropNex’s Mr Lee said their priority is to support their salespeople to understand the available pathways. “We see this as an opportunity to encourage greater professional engagement rather than focusing prematurely on how many may be affected,” he added. OrangeTee and Tie’s Ms Lee added: “The new requirement will help cultivate a more active and up-to-date agent pool. “But it should not be viewed as a policy designed to reduce agent numbers.” Huttons’ Mr Lee said he does not see the new requirements as a barrier to entry for newcomers. Despite the minimum training requirement rolled out earlier this year, the agency still sees many people taking real estate courses and the real estate salesperson examination. “If you raise the overall professionalism in the industry, it's actually good for the image of the industry as well. “So when this whole image is being raised, it may in fact attract even more people who are contemplating, exploring a career as a salesperson.”