S'pore Real Estate Firms Axe Thousands Of Agents Ahead Of New Mnd Regulations

[neubie 2]

Real estate firms in Singapore have axed thousands of agents, ahead of the regulatory framework to be implemented by the National Development Ministry.

The framework seeks to professionalise the industry, with the introduction of a new statutory board, known as the Council for Estate Agencies, and enhanced regulatory guidelines.

Channel NewsAsia understands that a Bill for the framework could be introduced in Parliament as early as October.

When contacted, the Ministry would only say that a Bill will be introduced in the second half of this year, with the Council operational by year-end.

Director of Dennis Wee Group, Chris Koh said: "It's going to be difficult for agents with a full-time job while moonlighting as an agent. Because the moment the employer goes into this public registry, the employer will know that you are an agent, and you stand to lose your existing full-time job."

Earlier this month, Dennis Wee Group's (DWG) housing agents were called back to their office to update their personal information and be briefed on the requirements of the new regulatory framework. The information collected was then submitted to the National Development Ministry, to be part of a new central registry of all agents.

1,500 of 5,000 agents were axed as a result of the exercise - mostly inactive or part-time staff.

Under the new guidelines, agents will also be required to pass a mandatory industry examination. Only those who already have industry certification will be exempted.

Rather than wait for the new examination, DWG has asked all its agents to get themselves certified with either the Certified Estate Agent Course or the Common Examination for Salespersons.

Another firm, PropNex, terminated 1,200 agents at the start of this year, either because they were inactive or unwilling to take up personal indemnity insurance.

The insurance covers any financial liabilities arising from housing transactions.

Agents associated with money-lending were also released.

CEO of PropNex, Mohd Ismail said: "Any PropNex agent who has a money-lending licence will not be allowed to practice. He or she will have to make a decision, because we do see a conflict of interest. We have terminated an agent who has been very active, however, he wanted to maintain both and that was not acceptable to us."

ERA, which has about 3,000 active agents, says it removes about 100 inactive agents from its database every month.

Associate director of ERA Asia Pacific, Eugene Lim said the company has also been conducting training to prepare their agents for the Common Examination for Salespersons.

To date, more than 2,500 ERA agents have taken this exam, with some having to do retakes for the paper.

HSR, which represents some 7,000 agents, says it regularly checks its database for inactive agents who are then put on a passive list and sent reminders to go for retraining.

There are an estimated 30,000 housing agents in Singapore.

The National Development Ministry has also been in consultation with various real estate firms to standardise documents used in the trade.

These include documents governing an agent's exclusive right to sell a property.

Currently, each agency has its own terms and conditions, which can be confusing for consumers.

[delirious_jeff 0]

Maybe HDB owners should start marketing and selling their own HDB flats.

[bepgof 20]

Before real earthquake comes, can always see those toads, snakes, insects, etc panick and seeking for new safe homes

Edited August 8, 2010 by bepgof

[ngunadi 2]

Before real earthquake comes, can always see those toads, snakes, insects, etc panick and seeking for new save homes

Considering that MBT keeps announcing more BTO, and even next year BTO would be more than this year, MBT only realized the gravity of the housing issue now. Especially when the latest HDB report that COV median is 30k.

Maybe won't be surprising if housing price would dip soon?

Market will slow down.

Maybe related or not related with all the axing of agents.

[bepgof 20]

Considering that MBT keeps announcing more BTO, and even next year BTO would be more than this year, MBT only realized the gravity of the housing issue now. Especially when the latest HDB report that COV median is 30k.

Maybe won't be surprising if housing price would dip soon?

Market will slow down.

Maybe related or not related with all the axing of agents.

Supply & demand always work hand in hand, there is an "invisible hand" does this equilibrium, according to Adam Smith. Lee SL got a Econ MBA by HVU & has mentioned this term many times. Substitution( no coffee then take tea lor) also comes into play when supply not enough. There is one big & visible hand to do the "stirring". "stirring" done by changing rules of the games.

So, as I have said a few times, as compared to HK & some major cities in China, proty price in Singapore has "many rooms" to grow. Our neighbours also like Singapore properties very much and said "good & cheap".

Edited August 8, 2010 by bepgof

[Jgal 0]

Considering that MBT keeps announcing more BTO, and even next year BTO would be more than this year, MBT only realized the gravity of the housing issue now. Especially when the latest HDB report that COV median is 30k.

Maybe won't be surprising if housing price would dip soon?

Market will slow down.

Maybe related or not related with all the axing of agents.

I believe next year, there will be WIS for mature estate. There are 1 set of hdb flats almost ready at holland , 1 set at buona vista , 1 set at dover another set at havelock road. Dawson is completing also.. So the leftover will also be out in the mkt. I believe the price wont be cheap.. ard Dawson price or more.

In any case, good luck to those that bought their flat at those faraway estates.. Once there is oversupply, it may go back to 2005 scenerio whereby alot of leftover from hdb. And the flat price in those estate drop below buying price.

Edited August 11, 2010 by Jgal

[chronograph 0]

Don't think HDB will make the same mistake of oversupply like 2005. Gov target is to have 6.5 mils population, at the current HDB supply rate, it is still not enough to feed the demand.

[Jgal 0]

Don't think HDB will make the same mistake of oversupply like 2005. Gov target is to have 6.5 mils population, at the current HDB supply rate, it is still not enough to feed the demand.

but dun forget.. alot of family are consolidating because the high price/cov. i heard alot of my colleague now stay with the in-laws after marrying/having children.

So instead of 1 family 1 flat, you get 2-3 "family units" in 1 flat.

Personally, think unless salary increases soon, more and more ppl will chose to stay in more crowded environment. e.g. if a PR earns $3k a mth, they cant be renting a place > half his salary. Thus, she/he instead of taking 1 rm, will share room.

At the rate, it's going.. i think there will be oversupply. Also hor, ppl that ballot normally, only take the good units... some of them rather wait for the next ballot than to take up low flr / west sun units.

Edited August 11, 2010 by Jgal

[chronograph 0]

but dun forget, your sampling size is way too small. Based on what release from the news on BTO, the number of application to one unit far exceeded expectation, the new flat is still highly in demand. Unless the news is not true or some information is intentionally hide away.

Besides, PRs need to accompany by a Singaporean applicant to be eligible for new flat. Otherwise they have to go resales which is even worst.

MBT said cannot satisfied everyone, which i agreed. Like your example, west facing don't want, low floor don;t want, that's the reason why GOV came out with BTO, only when application hits a certain % then will they go ahead to build. In that way GOV will not repeat the same mistake. (I also have colleagues staying in low floor, just individual preferences.)

I also want to complaint, everything go up and up very fast but salary always stay put or climb like snail.

[mach668 0]

but dun forget, your sampling size is way too small. Based on what release from the news on BTO, the number of application to one unit far exceeded expectation, the new flat is still highly in demand. Unless the news is not true or some information is intentionally hide away.

Besides, PRs need to accompany by a Singaporean applicant to be eligible for new flat. Otherwise they have to go resales which is even worst.

MBT said cannot satisfied everyone, which i agreed. Like your example, west facing don't want, low floor don;t want, that's the reason why GOV came out with BTO, only when application hits a certain % then will they go ahead to build. In that way GOV will not repeat the same mistake. (I also have colleagues staying in low floor, just individual preferences.)

I also want to complaint, everything go up and up very fast but salary always stay put or climb like snail.

agreed. under BTO system, over-supply like in previous downturn is highly unlikely given the fact that nowsaday flats are bulild to order, not build for order! younger generation would preferred to have their own house. if their is a overflow of BTO units, COV in resale market might dip, and that is the solution MBT is using right now by pouring in more BTO units. do u think government will let history repeat easily?

in my opinion, unless their is a change of hand of government or a major crisis be it similiar to 911/SARS/sept 09, then the property price might head south. major price correction is probably a dream of those ppl that have not purchase a unit during last crisis.

i've a friend who intend to buy a condo unit early last yr but hold back due to the believe of price might drop further. till today, he's still empty handed and says he miss the boat!

[forgotten 1]

These BTO units will only be available in the resale market 9 years later. 4 years building, 5 years MOP.

PRs can only purchase from resale market.

It's also tough for people of 3 generations to squeeze into 1 small HDB. E.g in 3rm HDB, grandparents or kids sleep in living room?

Edited August 12, 2010 by forgotten

[mach668 0]

These BTO units will only be available in the resale market 9 years later. 4 years building, 5 years MOP.

PRs can only purchase from resale market.

It's also tough for people of 3 generations to squeeze into 1 small HDB. E.g in 3rm HDB, grandparents or kids sleep in living room?

that's why government want the younger generation to start family early, apply for flats while they are young enough to wait, upgarde to bigger flats or private housing when they fullfilled min period.

as you mentioned "'These BTO units will only be available in the resale market 9 years later. 4 years building, 5 years MOP.'' prices might not head south easily, it will dip but probably not a lot for HDB in my opinion. as for the COV, most likely will hit a ceiling soon. paying high COV to purchase a re-sale flat is a bit diff from paying high $$ for COE!

that's why i tell my friend if he come across a suitable unit he should consider if that's for him to stay long term. but off course not at a record price!

[delirious_jeff 0]

Considering that MBT keeps announcing more BTO, and even next year BTO would be more than this year, MBT only realized the gravity of the housing issue now. Especially when the latest HDB report that COV median is 30k.

Maybe won't be surprising if housing price would dip soon?

Market will slow down.

Maybe related or not related with all the axing of agents.

MBT gonna release 16,000++ BTO. Gahmen wants to have 100,000 more FTs.

Looks like the demand shall be more than supply.