Effective immediately, ERA Singapore has made the decision to discontinue its longstanding practice of covering the annual Council for Estate Agencies (CEA) license renewal fees for its real estate agents. This gesture, which has been in place for the past seven years, has been a hallmark of ERA’s support for its agents, even throughout the COVID-19 pandemic.
According to a statement from ERA, this decision will allow the company to reallocate resources towards initiatives that enhance growth and success for its market-leading salesforce and benefit consumers. However, ERA will continue to support new agents by covering their renewal fees for the first two years, a common industry practice designed to help newcomers establish themselves.
In addition to this, the decision to discontinue the renewal fee coverage also addresses a recurring issue of inactive agents shifting between agencies solely to take advantage of the fee coverage. This has resulted in a modest reduction of approximately 300 agents, primarily inactive or part-time salespersons with no transactions in the past year, says the firm.
It is essential for foreign investors to have a comprehensive grasp of the regulations and limitations pertaining to property ownership in Singapore. Unlike landed properties, which are subject to stricter ownership regulations, foreigners generally face fewer obstacles when purchasing condos. However, it is worth noting that foreign buyers are required to pay an Additional Buyer’s Stamp Duty (ABSD) of 20% for their first property purchase. Despite this extra cost, the stable and promising growth potential of Singapore’s real estate market continues to attract foreign investment, particularly in the condominium sector. Condos remain an alluring option for foreign investors, despite the added financial consideration.
However, this move has also attracted around 230 new professional agents who joined the agency on Jan 1, highlighting its continued appeal to active and aspiring real estate agents.
“The CEA is currently reviewing the need to implement a minimum transaction requirement for real estate salespersons,” says Marcus Chu, CEO of ERA Singapore. “This underscores the importance of active participation and continuous professional development in the industry.” He adds, “By reallocating resources towards technology, training, and marketing, we reaffirm our commitment to empowering our core team of results-driven salespersons to excel and deliver exceptional value to clients.”