PropertyBT: Are property agents still relevant - Insights from OrangeTee’s CEO
IF you’ve ever bought, sold, or rented a home, then you’ve probably worked with a property agent. This question often crosses people’s minds: Are property agents really worth it? It’s a thorny issue that has sparked a lot of debate.
At the start of 2024, there were over 35,000 agents in Singapore - according to the Council for Estate Agencies. Do agents really add value to property transactions?
Why are there so many agents
In the most recent episode of the PropertyBT podcast by The Business Times, host Leslie Yee, delves into this controversial topic with guest Justin Quek, CEO of OrangeTee & Tie. Founded in 2000, OrangeTee ranks among Singapore’s top five property agencies by the number of property agents.
Leslie kicks off the conversation by asking Justin to provide a sense of the composition of property agents. Justin explains that the beauty of the profession lies in its flexibility, attracting people of various ages and diverse backgrounds. At OrangeTee, agents range from their early 20s to their 70s, coming from varied careers in teaching, banking, and even in rank and file positions in cleaning.
Not all agents created equal
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Leslie highlights that while the flexibility of being a property agent is a lure, agents are typically paid for closing. This can be lucrative for those closing multiple or high-value deals but also involves marketing costs and fluctuating earnings.
With intense competition, some agents may resort to hard sell tactics, pressuring customers to make hasty decisions. Leslie raises the concern of agents listing properties at high prices to pressure buyers. Justin suggests that most agents do not want to list houses at inflated prices since their commissions come from successful closures - pointing out that the pressure often comes from sellers wanting to achieve the highest price possible.
Are agents still relevant
A Memorandum of Understanding (MOU) signed earlier this year by large agencies in Singapore, aims to implement best practices, such as recommending buyers to pay for their agents and sellers for theirs, although it faces a cultural resistance.
With technology playing an increasingly significant role in real estate, Leslie asks Justin about its impact. Justin acknowledges that technology is chipping away at the value proposition of property agents but believes that human interaction still holds significant importance in real estate transactions.
Evolution of selling
The Council for Estate Agencies, is considering whether to allow agents with few transactions to remain in the business. Justin stresses the need for flexibility to account for various life stages and seasonal changes.
Justin explains that high commissions often come from developments nearing Additional Buyer Stamp Duty (ABSD) deadlines and may face challenges in selling all units.
Listen now to the podcast to hear Justine Quek’s insights into how the property agency business will evolve and provide even more value in the future.
For more episodes, go to bt.sg/podcasts and if you have feedback or an episode idea, please get in touch at btpodcasts@sph.com.sg.
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Written and hosted by: Leslie Yee (lyee@sph.com.sg)
With Justin Quek, CEO, OrangeTee & Tie
Edited by: Emily Liu & Claressa Monteiro
Produced by: Leslie Yee & Emily Liu
Engineered by: Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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