Spike in property agent commissions may draw greater scrutiny given its wider impact

SINGAPORE'S physical property market has been resilient, but this has not been reflected in the share prices of the listed developers. Shares of CapitaLand and City Developments, two of the largest local players, have declined nearly 10 per cent and 30 per cent, respectively, in the past year.

But the share prices of the property agents tell a slightly different story. PropNex, for instance, has gained more than 60 per cent.

This divergence is reflective, also, of the financial performance of both segments of the property sector. Developers' profit margins for Singapore private housing projects here have shrunk, but the commissions they have been paying to property agents to move their units have risen.