“...charging low commission rates for HDB flat transactions is a personal decision and a pragmatic response to changing market dynamics and the evolving role of real estate agents.” - Preston Soon

5 Reasons Low Agent's Commission for HDB Flat Transactions

As a seasoned property owner who transitioned from a humble 2-room HDB flat in Commonwealth in 1995 to owning three homes today, including a landed property, I understand the significance of affordable commission rates in the real estate market. Here are five compelling reasons why charging low commissions for HDB flat transactions is not only beneficial but also aligned with the changing dynamics of the real estate industry.

1. Personal Experience and Empathy:

My journey from an HDB flat owner to a multi-property homeowner has given me valuable insights into the aspirations and challenges of HDB flat owners. I empathize with the desire to maximize returns on property investments and appreciate the need to reduce transaction costs, ensuring sellers retain more of their hard-earned money.

2. Market Trends:

The trend of decreasing commission charges in the real estate industry, which began around the year 2019, has gained momentum in recent years. The market has evolved to recognize that lower commissions can attract more sellers and buyers, fostering a healthier and more competitive environment.

3. Homogenization of Properties:

Singapore's HDB segment has witnessed the proliferation of similar, homogeneous properties. This increased uniformity has contributed to a more efficient market where property transactions are becoming increasingly commoditized. In such a scenario, it makes sense to align commission rates with the changing dynamics of property transactions.

4. Informed Sellers:

Today, property owners are more knowledgeable about the sales process than ever before. With resources such as HDB's resale seminars, homeowners have access to valuable information that empowers them to take charge of their property transactions. This increased awareness means that agents may need to provide fewer advisory services, further justifying lower commission rates.

5. Government Data Dissemination:

The Singapore government has taken proactive steps to provide comprehensive property market data to the public. This wealth of information equips property owners with the knowledge they need to make informed decisions. With widespread access to property data, the role of the middleman has evolved to primarily managing the transaction process. Consequently, lower agent commissions are more justified.

Conclusion

In conclusion, charging low commission rates for HDB flat transactions is a personal decision and a pragmatic response to changing market dynamics and the evolving role of real estate agents. As someone who has experienced the property journey firsthand and witnessed the industry's transformation, I believe that providing affordable and competitive commission rates is not just a business decision but a commitment to serving the best interests of property sellers in Singapore. By embracing lower commissions, we contribute to a more accessible and efficient property market that benefits all stakeholders.

Back to HOME