Property agents in Singapore have been advised to be more responsible in the light of “scare tactics” on clients’ concerns.
A number of emails showed that some real estate agents are highlighting the recent land sales of the government to lower customer expectations of property prices. These emails point out correspondence between agents of ERA, a real estate company.
In one of the emails, a senior official focused on a media report about land released for private houses. He asked the agents to use the report as “a bargaining point to lower down your private residential seller’s high expectations.”
This stance prompted another agent to reveal that she managed to close a deal by telling her client that the “market is going to crash.”
Industry analysts stated that the gap between sellers’ and buyer’s expectations is widening because of mixed market outlook.
ERA pointed out that it did not have any specific rules on how agents should deal with their clients, provided that the information they presented are factually correct.
Eugene Lim, associate director from ERA Asia-Pacific, said “It could be wrong usage of the word or overly strong usage of the word”, adding what the agent was trying to emphasize was that there will be a downward pressure on prices since supply is rising. It is also a matter of opinion and perspective.
“Today’s sellers” are not “spooked by language”, as most of them have sufficient information to make an opinion, Mr. Lim added.
Steven Tan, a member of the advisory committee of Singapore Accredited Estate Agencies (SAEA) said that such conduct is not supported by the industry.
“Instead, the agent should provide more comprehensive analysis of the market condition and get the best possible price for the seller,” said Mr. Tan.
Dr. Tan Tee Khoon, CEO of SAEA, noted that it may not have been a ‘scare tactic’. It could have been a “responsible advice to make hay while the sun shines and sell at the best price.”
The National Development Ministry is creating a statutory board called the Council for Estate Agencies, to enforce a regulatory framework for property agents and protect clients over agencies or agents’ “scare tactics”.