Top Image: Zachary Tang / RICE Media
Singaporeans care a lot about their housing, and rightfully so. Everyone needs a place to live, and sooner or later, most Singaporeans will end up buying their own houses.
When it comes to buying a Housing Development Board (HDB) flat, our parents might have had to engage a property agent charging a 2 percent commission. Let’s say you’re selling your HDB flat for $500,000—your agent pockets $10,000, and the other $490,000 goes to you.
But now, agencies charging fixed fees are making things more cost-friendly. The recent introduction of the HDB resale portal reduces the need to engage an agent at all. For those who are tired of some property agents’ seemingly exorbitant commissions and unnecessary displays of glamorous lifestyles, these are welcome changes.
And who can blame Singaporeans for trying to save money in this economy?
At the end of the day, is an HDB flat worth penny-pinching on? We speak to buyers and sellers past, present, and future to hear about their experiences, how the property market has changed, and how they think it might continue to change.
“I bought my flat in 2018 and sold it in 2023.
My property agent deserved every dollar. She replied super quickly, walked us through the process, engaged the photographer to do photography and a full 360° digital tour, helped us get a great price and updated us every step of the way. She also managed the admin processes for us. It was all about the little things—whenever documents needed to be signed, she would travel to meet me wherever I was. She helped us sell a lot of our furniture, appliances, books, etc., coordinating with buyers and transferring the sale proceeds to us.
Personally, I just want the process to be as painless as possible and in exchange for what my flat is worth. I thought I got a great deal and never felt like she wasn’t being transparent with us. For me at least, I preferred having a person to talk to and coordinate with versus going to the portal and managing things myself.”
— Jerome, 32
“We confirmed our chosen flat before we managed to sell ours sometime in Q1. After speaking with a few property agents, we selected one and arranged viewings through PropertyGuru to gauge the market. Initially, we set aside a budget of 1 percent for agent fees, but the agent informed us that their rate was actually 2.5 percent. We were offered 2 percent after a few rounds of discussions.
As first-time buyers of a resale flat (our current unit was purchased through the Sale of Balance Flats exercise), we diligently researched online and decided to hire an agent to ensure the process met our needs. The agent we chose presented their credentials, marketing videos, YouTube content performance, and ad-boosting strategy for marketing our unit. However, when it came time to answer relevant questions, such as video performance and access to performance reports, we received only vague responses; there was also a time during the price negotiations when we questioned if the agent was on our side of the table, given how it was approached.
There is a need for greater assurance throughout the process, including accuracy in financial breakdowns and clear communication. If we find ourselves having to initiate and redo spreadsheet formulas because there were missing items (as basic as stamp duty) or reconfirm details via email to ensure a paper trail, it raises concerns about whether the agent truly deserves the 2 percent fee.
The marketing tactics in the property market need to evolve. No more stroking the egos of the top 10 percent earners by publicising their awards, cars, and lifestyle. Instead, the focus should be on the true value of their services, what they bring to the table, and how they intend to help home sellers and buyers. Based on my observation, this focus is almost non-existent.
Initiatives like the HDB resale portal will qualify serious home sellers and buyers, as it requires them to register an ‘Intent to Sell’ via the HDB website. This may allow Singaporeans to be more informed about the prices of listed properties ahead of scheduling a viewing. As this initiative is fairly new, however, I’m also unsure how it can possibly disrupt or add value to the property market.”
— Khalif, 37
“I bought my 4-room flat 14 years ago in the resale market. I paid $280,000 then, and with renovation, it came up to about $300,000, which is pretty decent compared to the crazy prices nowadays. I can’t remember how much commission I paid back then, but the agent did the necessary. I had no complaints.
A 2 percent commission is a lot of money if the property is bought/sold for millions. I would gladly pay the 2 percent if the agent is experienced, honest, diligent, objective, and most importantly, able to give good advice.
A flat fee commission might not incentivise the agent, but it’s good for the client. It’s difficult to set it at a level that pleases both parties though.
I think the resale portal would provide greater transparency to people who are buying/selling their flats and prevent any ridiculous price quotes as there is a platform for comparison.”
— Christine, 54
“I’m currently looking at flats on the resale market. To be honest, my biggest problem right now—besides sky-high housing prices—is HDB.
You have to apply for a HDB Flat Eligibility (HFE) Letter before you can even access the HDB resale portal. Nowadays, if you’re trying to arrange home viewings, the seller’s agents will also ask if you have the HFE.
After submitting the required documents (pay slips, credit scores), my partner and I didn’t hear back from HDB until over a month later. All we got was a generic rejection because we apparently didn’t submit all of the required documents. They didn’t even tell us what we supposedly missed out on. I swear we submitted everything!
We’ve had to apply for a second time and wait a whole additional month (and counting).
Still, I think my partner and I will manage just fine without an agent. Reading up and doing our research together has been fun. With all the resources available online and the new HDB resale portal (if only they’d give us our HFE so we can get on the platform), navigating the property market is entirely doable.”
— Anna, 29
“I bought and moved into a Built-To-Order flat in the North East district with my husband without any hitch whatsoever a few years before Covid hit. Whatever gripes people might have now about the cost of housing, queue numbers, eligibility, long construction times—thank god we had little to no issues. It was smooth sailing from the moment we applied for a flat to the moment we got our keys. Our CPF accounts were wiped clean, though. Thanks HDB!
Moving hasn’t crossed our minds; it’s too much hassle to look at resale flats. Plus, we’re comfortable here and don’t buy into the typical Singaporean ‘turn-a-profit-from-your-flat’ mentality.
But if we do change our minds… I’d prefer to market and sell our flat ourselves via the HDB portal. Video production? Snazzy interior photos? Copywriting? Please, I’m a PR industry girlie. Okay fine, I’ll need help in the paperwork and processing side of things, so I’ll need someone to help me with those. But marketing? I’ve got it covered—I know how to build online hype on Instagram. Property agents charging 2 percent commission for marketing and finding interested buyers? No, thanks.”
— Cherie, 34
“I’m sure there are good agents who are well worth the commission, but I’ve seen so many bad ones.
I have experienced renting before, and am now looking for a forever home.
One common one is baiting and switching. They’ll spam property platforms with listings that either aren’t under their purview or aren’t available. When you reach out to them to ask about the place, they’ll recommend a different property to you.
While it’s hard to prove, I’m pretty sure they lie about the offers a property gets all the time. A friend who was selling his place posed as a buyer just to test his agent. The agent told this “prospective buyer” that the place was sold! My friend was actually still deciding between a couple of offers. I think the agent just didn’t want to do the extra work of arranging viewings and communicating with a new potential buyer.
As property prices balloon, agents who operate on 2 percent commissions are going to earn more for the same amount of work. If they’re only doing the bare minimum, it’s no wonder that clients are upset.”
— Jasper, 32
“Back in June 2022, I engaged a property agent to help me find a place.
It was on a 2 percent commission basis, but I thought she was worth the price.
She was able to recommend places that weren’t even listed on property sites yet. And she found a few places that fit my budget and requirements pretty quickly.
If I were looking for the place myself, I’d have taken much, much longer. It also freed me up to take care of the other things in my life, like wedding planning. I feel that time is money, so I don’t mind paying for something that will save me time.”
— Samantha, 30
