http://www.straitstimes.com/Singapor...ry_695560.html

Jul 28, 2011

Tussle for good property agents

Smaller agencies fear losing out as big players offer perks such as free registration

By Jessica Cheam


REAL estate agencies are coming up with creative ways to recruit property agents in an industry that has become more competitive since the Government moved to regulate it.

A survey of recent advertisements by property agencies shows some offering incentives, from free registration fees and higher commission rates to iPhone apps and free training workshops.

But the move has upset some smaller players, who fear they will be muscled out of the industry as they cannot afford to offer such perks.

'The result is that the big (agencies) will become bigger, the small will become smaller,' said one 36-year-old property agent, who has been in the industry for nine years. He declined to be named.

A group of smaller agencies has raised its concerns with the Institute of Estate Agents, which offers industry training and represents small and mid-sized agencies.

IEA president Mohamed Ismail told The Straits Times that these agencies had flagged concerns about the tactics used to lure agents.

'We have taken up their concerns with the CEA and are in discussion with them,' he said, referring to the Council of Estate Agencies.

He added that many players in the industry feel that the CEA should issue advertising guidelines for agencies, and not just agents.

The CEA was set up last October to regulate the property industry, which had earned a 'cowboy' reputation because of rising complaints about rogue agents during Singapore's property market boom.

Since Jan 1, all agents have had to be registered with the CEA, and since March 1, they have had to carry an Estate Agent Card, which displays the agent's name, licence number and a recent photograph. The registration fee is $230 a year.

The CEA recently issued new rules, due to take effect from Monday, banning agents from exaggerated advertising claims, such as describing themselves as 'specialists' or 'experts', or promising that HDB flat sellers will receive a certain cash premium.

Mr Ismail said the CEA could consider issuing guidelines for agencies on what the ethical parameters are regarding recruitment, and on agent-to-agent matters such as co-broking.

When contacted, the CEA said it would 'continue to work closely with the industry and our key stakeholders to come up regularly with practice guidelines to enhance professionalism'.

'The media will be informed when they are finalised,' it said, adding that it was aware of 'the recruitment techniques by estate agents and is in discussion with the industry'.

Agency bosses such as ERA Realty key executive officer Eugene Lim acknowledge that competition for good agents has become fiercer since the industry was regulated, saying: 'There are higher standards now... The avenue to recruit fresh blood has slowed down because of the new rules. It takes half a year to train a new agent now, and we have no choice but to be innovative.'

But he does not see any issue in offering perks for agents to join, as 'it's an open invitation and fair competition'.

'It's the same as head-hunting; there is nothing wrong with offering incentives, just as you would offer a higher salary to a potentially good employee.'

He warned against CEA issuing too many guidelines, saying they would eventually amount to 'micro-managing' the industry. ERA is one of the agencies offering free registration fees to attract agents.

Property agent Lee Han Sing, of C&H Properties, said several agencies have been known to offer similar perks, such as a full refund of all costs associated with industry examinations.

'There is more movement among the younger agents, who are moving from agency to agency to seek the best deals,' he said.

Dennis Wee Group director Chris Koh cautioned, however, that agents have to be wary of the strings attached.

'Many offer these perks, but they set targets for the agents and bond them to a specific team leader for at least a year,' he said.

Before CEA regulation, agents would flit from agency to agency as there were no registration fees or licences issued, but Mr Koh said: 'There's not as much movement since CEA started, so agencies have to be creative now.'

What is more important is that efforts to raise the professionalism of the industry seem to be working, with agents who join the industry being more serious about the job, he said.

'This raises the value of good agents. If you're a good producer, people will want you.'

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