The Council for Estate Agencies (CEA) is in the midst of a review that could change the landscape for property agents in Singapore. The proposal suggests a requirement for agents to complete a minimum number of transactions to renew their registration, a move intended to enhance professionalism within the industry.
Rationale Behind the Review
This initiative brings to light concerns raised during recent industry engagement sessions. According to a CEA spokesperson, agents who do not frequently facilitate transactions could inadvertently provide outdated advice to clients due to a lack of familiarity with constantly evolving regulations and market trends.
Current Registration Requirements
- Property agents must complete the Real Estate Salesperson (RES) course.
- Passing the RES exam is essential for registration with the CEA.
- Currently, agents are not required to meet any minimum transaction thresholds for license renewal.
Statistics on Agent Activity
According to CEA, there are 35,251 registered property agents as of 1 January 2024. Interestingly, an average of 40% of agents didn’t close a single residential property transaction in recent years. However, this group may still be active in commercial or industrial transactions, or they may hold supervisory roles.
Industry Perspectives
Leaders within the property sector, such as Justin Quek, CEO of OrangeTee, emphasise the importance of agents remaining active to stay relevant. He noted that some agents may choose to focus on roles like recruitment or mentoring, especially as the real estate market can be cyclical.
Mark Yip, CEO of Huttons Asia, estimates that between 30% and 50% of agents could be classified as inactive across the industry. He added that while requiring a minimum number of transactions could professionalise the industry, setting a blanket standard could be challenging.
Upcoming Changes to Training Requirements
Starting in October 2025, the CEA will implement a new training requirement that raises the annual training hours from six to 16. This heartening move aims to further weed out less committed agents while also enhancing service quality.
The discourse around this issue highlights a balance between maintaining flexibility for agents and ensuring they are qualified to provide the public with accurate and up-to-date advice.