Singapore’s ongoing sales drought has caused some new real estate agents to drop out of the industry.
Notably, majority of the 3,959 salespersons who opted not to renew their licences in 2014 are new agents who have been in the business for less than three years.
“Generally, it is more difficult for a new entrant to gain a foothold in this business. It takes a few years to build up their clientele base to get referral business. With fewer deals and higher marketing costs, everyone’s income has taken a hit. Salespersons now have to put in more time, effort and money to secure a deal,” said ERA Realty Division Director Eric Tng.
Aside from the high property cost and sluggish sales, property agents were also affected by the newly formed Do Not Call (DNC) list and Personal Data Protection Act (PDPA), said PropNex CEO Mohamed Ismail Gafoor, noting that adhering to these stricter guidelines made it more difficult for them.
He noted when sales are weak, some agents are deterred from renewing their licences as they need to pay for Continuing Professional Development (CPD) courses and professional indemnity insurance as well as make regular CPF contributions.
Meanwhile, property agents who leave the industry turned to multi-level marketing (MLM) or other jobs with a fixed monthly income.
Tng added, “Interestingly, many salespersons will keep their license and wait for good times to return. Meanwhile, they will take up a part time job or do other kind of sales (like MLM) to supplement their income. For those who dropout, most will return to full time employment.”
Image: File photo of property agent
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
