Real estate companies in Singapore are jostling for the best property agents as a result of the enforcement by the new regulatory body, the Council for Estate Agencies (CEA).
New rules state that agents can only work with one property firm, which means that those who previously represented multiple companies now need to choose just one.
This has resulted in an industry shake-up, with agents being drawn to companies with a record of high-profile residential launches that help them receive more commissions.
The number of residential brokers at companies including Huttons Real Estate Group and Savills Singapore has increased rapidly.
Other companies including ERA, PropNex and Knight Frank have seen declines in the headcount numbers, as agents either left to work for other companies or left the business entirely, discouraged by the stricter regulations.
At Savills, the residential team has grown from 35 people in October to 550 brokers now. Chris Marriott, chief executive for Savills Southeast Asia, is expanding his team to tap on market opportunities.
“There are a large number of projects coming through, both in terms of new launches as well as completions (when projects receive their Temporary Occupation Permit),“ said Mr. Marriott.
The reinforced sales team will focus on marketing assets in prime districts in Singapore and handle new launches, re-sales and sub-sales.
New agents at Savills are all experienced, he said. Sources also said that a large number of its agents previously worked for Knight Frank.
Companies that have seen a dip in headcount numbers said that some of their former agents have left to work for competitors. Some inexperienced and inactive agents have also decided to leave the industry, they said.
For instance, ERA registered about 4,800 salespersons with CEA during a recent registration exercise, down from the 5,800 agents it had at the start of the year. However, Eugene Lim, associate director at ERA Asia-Pacific, said that only 3,800 of the sales team were “performing agents” prior to the registration exercise.