More competition, higher costs, slowing sales could hurt property agents’ earnings

AFTER a year of robust earnings as commissions rose while transaction volumes slipped in 2022, Singapore housing agents now face increasing competition in the industry.

For a start, sales volumes have slowed this year, observed Joel Kwok, a marketing director at ERA. It is now taking a longer time to clinch a deal – from less than a month in 2021 and 2022, to around four to six weeks in the current market, said Kwok.  

Quarterly data from the Urban Redevelopment Authority showed that overall sales (excluding executive condos) dipped by 22.9 per cent year on year in Q1 2023. New sales volume was down 31.2 per cent year on year, while sales volume in the secondary market (consisting of sub-sales and resales) dropped 18.6 per cent year on year.