NUS Survey Reveals Real Estate Executives' Concerns Over Surplus of Agents

A recent survey by the National University of Singapore (NUS) has revealed that a majority of senior real estate executives believe there is an excess of salespersons in the industry. Despite this, the Q4 2023 Real Estate Sentiment Index indicates that 84% of these executives expect the allure of high commission fees to continue drawing new agents into the market.

The NUS survey points out that the number of real estate salespersons has been on an upward trend, with 35,251 registered as of January 1, up from the previous year, despite a slowdown in the domestic property market due to cooling measures and rising interest rates.

Professor Sing Tien Foo of NUS Business School expressed concerns that an oversupply of agents might not contribute to economic growth and could potentially disrupt the balance of the workforce across industries. He suggested that if market forces do not address this imbalance, regulatory intervention might be necessary.

The survey also highlighted a concentration of salespersons within the top three agencies, raising concerns about potential unfair competitive advantages and the impact on commission fees. While some respondents called for a cap on the number of agents, others disagreed or remained neutral. Further research was recommended to explore the implications of such a cap.

Overall, the sentiment is that increased competition among agents could benefit consumers, but the current distribution raises questions about market dynamics and fee structures. The survey included participants from various sectors, including development, consulting, architecture, banking, and law.

Adapt from The Business Times

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