Do We Really Need 35,251 Property Agents In Singapore?

All hail the digital generation (of property agents)

As of this year, we have around 35,251 property agents, up from 34,427 last year; which when we consider how much they like flyers, makes it amazing there are any trees left. 

But this is despite the fact that the property market is starting to cool, and we may even be headed for a correction. This is the opposite of what you might expect, as it’s during the boom market that most people start thinking it’s easy money. 

I then wondered if there was a correlation between how well the property market is doing, and how many agents are there. 

Here’s what I found:

As you can see, it is quite correlated in terms of the peaks and troughs. But given there could be a delay in terms of price moving before people start to act (and as the new agents need to pass their exams, get their licenses, etc.) - here’s how it looks when we add in a year delay in terms of prices:

So if we look at how prices move, there’s now an even closer correlation with the number of property agents entering the market. Now that we’ve incorporated the one-year delay, we can see that property prices and the number of property agents in Singapore are much more in sync.

Now as of 2024, some of these new agents are late to the party. They noticed the post-Covid property goldmine in 2023; but it’s too bad that, just as they got their licenses at the start of this year, the market is beginning to cool. 

But market conditions aside, I think there’s another reason for the eagerness to join the industry. I’ve seen an increasing number of younger agents, who cite property videos on YouTube, or interior tours on Instagram, as the thing that sparked their interest. 

Consider how properties today are marketed: we’ve gone from classified ads, to property portals, to digital content with video and Instagrammable interiors. 

The skills of a YouTuber or Instagram model are arguably more relevant to property marketing than ever before. And among the younger crowd (who don’t seem too happy with the conventional job market by the way), this is something that they get. I think it’s starting to dawn on them that, when it comes to digital property marketing, main character syndrome isn’t frowned upon. Behaving like that is an advantage. 

The younger generation of agents are more exposed to online content, and have a better sense of what works. They know what sort of posts attract clicks, they know how to present themselves on social media; and when they create content, it comes off as less pretentious than my generation’s attempts. 

But that leads to the question of how many property agents we need

The number of agents has hovered around 30,000 to 35,000 for many years; and even around a decade ago, many asked if so many agents are necessary. 

We have an increasing number of avenues for people to buy or even list properties without agents; the HDB resale portal will also come about soon. Fewer tenants like to use leasing agents, and some buyers these days even shun the use of a buyer’s agent. 

Now I’m not saying the age of property agents is at an end; far from it (in fact, here’s a long explanation as to why agents are still important). 

But I worry that some property agencies have given up on nurturing better agents, and instead just gone for casting the widest net possible (e.g., if one in 10 agents are actual talents, they don’t try turning that ratio into five or six out of 10; instead they just get 10,000 new recruits, and leave the less talented ones are left to perish Lord-of-the-Flies style). 

When agencies just start going for numbers like that, service quality sinks like a brick in a bathtub. Buyers and sellers are forced to sift through multiple bad agents, to get to the genuinely good ones. 

Still, on the plus side, taking on younger and more tech-savvy agents might make up for this. It improves the odds of a quicker transaction; and some clients are more satisfied at seeing nice promotional videos, Instagram pics, etc. Quite a few have told me that it simply feels like they’re getting their money’s worth. 

This may even be sufficient to convince buyers and sellers to work with agents again, despite the increasing avenues for DIY property transactions.

Meanwhile in other property news:

• So you want to live near a landed enclave for peace and quiet, but you don’t want a mortgage that your great-grandchildren will be paying off. Okay, here are the most affordable options. 
• What’s more magical than seeing a unicorn? A three-bedder priced below $1.2 million in Singapore. Experience the magic here. 

• Dual-key units: when you buy one, it feels like you fought IRAS and won. Here’s what it’s like to live in one at Whistler Grand. 
• While I think property agents get a bad rep sometimes, some of them may deserve it. 
• What’s it like being a homeowner as early as your mid-twenties? One of them explains it all

Weekly Sales Roundup (08 January - 14 January)

Top 5 Most Expensive New Sales (By Project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
WATTEN HOUSE	$12,236,000	3412	$3,576	FH
THE RESERVE RESIDENCES	$8,098,520	2809	$2,883	99 yrs (2021)
LEEDON GREEN	$4,708,000	1356	$3,471	FH
THE CONTINUUM	$2,688,000	947	$2,838	FH
PINETREE HILL	$2,567,000	969	$2,650	99 yrs (2022)

Top 5 Cheapest New Sales (By Project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
PINETREE HILL	$1,349,000	538	$2,507	99 yrs (2022)
RIVERFRONT RESIDENCES	$1,490,550	872	$1,710	99 yrs (2018)
THE MYST	$1,507,000	678	$2,222	99 yrs (2023)
LENTOR HILLS RESIDENCES	$1,777,000	753	$2,358	99 yrs (2022)
SCENECA RESIDENCE	$1,860,000	904	$2,057	99 yrs (2021)

Top 5 Most Expensive Resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
THE RITZ-CARLTON RESIDENCES CAIRNHILL	$16,500,000	3057	$5,397	FH
THE ARCADIA	$4,600,000	3735	$1,232	99 yrs (1979)
CYAN	$3,550,000	1528	$2,323	FH
THE ARC AT DRAYCOTT	$3,500,000	1270	$2,756	FH
NEWEST	$2,800,000	2519	$1,112	956 yrs (1928)

Top 5 Cheapest Resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
VETRO	$658,000	474	$1,389	999 yrs (1882)
VENTURA VIEW	$700,000	441	$1,586	FH
PRESTIGE HEIGHTS	$730,000	409	$1,785	FH
SIMS URBAN OASIS	$785,000	409	$1,919	99 yrs (2014)
ALEXIS	$800,000	398	$2,009	FH

Top 5 Biggest Winners

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
THE RITZ-CARLTON RESIDENCES CAIRNHILL	$16,500,000	3057	$5,397	$4,900,000	8 Years
WARNER COURT	$2,800,000	1270	$2,204	$2,062,000	22 Years
THE WATERINA	$2,500,000	1313	$1,904	$1,733,263	22 Years
HILLINGTON GREEN	$2,375,000	1528	$1,554	$1,600,000	19 Years
VARSITY PARK CONDOMINIUM	$2,295,888	1572	$1,461	$1,476,857	17 Years

Top 5 Biggest Losers

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
THE ROCHESTER RESIDENCES	$1,638,000	1281	$1,279	-$181,020	16 Year
STARLIGHT SUITES	$1,890,000	850	$2,223	$26,644	14 Years
KINGSFORD WATERBAY	$1,168,000	850	$1,374	$31,000	6 Years
VETRO	$658,000	474	$1,389	$38,000	12 Years
RV POINT	$945,000	484	$1,951	$68,960	13 Years

Transaction Breakdown

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