ST : Number of property agents set to fall

Oct 21, 2010

Number of property agents set to fall

Stricter standards from sector's first regulator to target errant agents

By Jessica Cheam & Esther Teo



FEWER property agents will be plying the trade from next year, but they will - hopefully - be better informed.

The property industry is bracing itself for a mass cull of estate agents as the industry's first ever regulator, the Council for Estate Agencies (CEA), begins operations tomorrow.

Agency bosses estimate that the current national 30,000-strong pool of agents will shrink by a third to about 20,000 overnight because of stricter standards laid down by the new council.

The new regulations mainly involve the strict enforcement of industry exams, and are aimed at ridding the industry of errant, sub-standard agents who have tarred its reputation.

Industry watchers expect the rising number of complaints in recent years to decline as the quality of agents rises.

Agencies are expected to submit a final list of names of agents who make the cut to the CEA by midnight tomorrow.

Registration with the council, which comes under the Ministry of National Development (MND), will become mandatory from Jan 1.

PropNex chief executive Mohamed Ismail said his firm's headcount will slide from 6,000 to about 4,000.

HSR chief executive Patrick Liew said his firm will lose about half of its 7,000 agents.

It is the same story islandwide: Dennis Wee Group director Chris Koh said its number of agents will fall from 5,000 to 3,000, while ERA Asia Pacific will lose almost half of its agents, falling from 8,000 to 4,200. At OrangeTee, the 3,600 agent pool will shrink to 2,500.

The CEA was set up after legislation to regulate property agents for the first time was passed in Parliament last month. It was a milestone for the real estate sector here.

For many years, consumers had lobbied for greater regulation of an industry dogged by a rising number of complaints against agents who were attracted by Singapore's periodic property booms.

Complaints against real estate firms and agents shot up almost 60 per cent in recent years: from 670 in 2005 to 1,070 last year, according to the Consumers Association of Singapore.

To make the cut, agents must have passed existing industry examinations. Those who have not must have brokered at least three deals in the past two years. The latter group are given more time to pass the exams.

Agents who fail to meet these criteria will be treated like new applicants who must take new courses and a stricter exam set by the CEA.

Dennis Wee's Mr Koh said the agencies had been prepared for the new regime 'for some time' as a result of frequent updates from the MND.

'The quantity of agents will go down, but at least the quality will go up, because for the first time, all agents have to pass an exam before being able to practise in the property market,' he said.

HSR's Mr Liew noted that smaller to mid-sized agencies would have to spend money to ensure their systems were up to scratch to meet CEA standards.

Further industry consolidation is also expected. Already, C&H Realty has merged with its sister company C&H Properties to reduce overhead costs.

'There will be less competition in the industry now, which will be a good thing as service standards should go up,' said C&H Realty managing director Albert Lu.

The existing Institute of Estate Agents (IEA) and Singapore Accredited Estate Agencies (SAEA) will still operate.

Mr Ismail, who is also the IEA president, said the institute, which has about 2,000 property agents as members, will apply to be an approved trainer to offer training for new recruits to property agencies.

SAEA chief executive Tan Tee Khoon said the body, with the Singapore Institute of Surveyors and Valuers, will continue its enhanced accreditation scheme, which will complement the Government's mandatory licensing scheme.

Property agents interviewed welcomed the regulation of the industry, saying that for too long, inexperienced agents or part-timers made promises they could not deliver, and tarnished the profession.

Property agent Jasmine Png, 29, said agents who are experienced will not be affected by the rules. 'The regulations will make sure only the professionals make the cut,' she added.

jcheam@sph.com.sg

esthert@sph.com.sg


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WHO WILL MAKE THE CUT?

· PropNex: 4,000 of its 6,000 agents

· HSR: 3,500 of its 7,000 agents

· Dennis Wee: 3,000 of its 5,000 agents

· ERA Asia Pacific: 4,200 of its 8,000 agents

· OrangeTee: 2,500 of its 3,600 agents