Starting January 1, ERA Singapore is discontinuing its tradition 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, will no longer be continued, even during the COVID-19 pandemic. ERA has always been known for its strong support for its agents, and this move marks a significant change in its practices.
According to a statement released by ERA, the decision to stop covering the renewal fees will allow them to redirect their resources towards initiatives that will promote the growth and success of their leading sales team, as well as benefit consumers. However, they will continue to support new agents by covering their renewal fees for the first two years, which is a common industry practice that assists newcomers in establishing themselves.
When it comes to investing in Singapore, it is crucial for international investors to have a good grasp of the regulations and limitations surrounding property ownership. Fortunately, purchasing a condo is relatively straightforward for foreigners compared to owning landed properties, which are subject to stricter ownership rules. Nevertheless, foreign buyers are required to pay the Additional Buyer’s Stamp Duty (ABSD), currently set at 20%, for their initial property purchase. However, despite this extra expense, the stability and potential for growth in the Singapore real estate market remains a magnet for foreign investment. Therefore, it comes as no surprise that Singapore Condos continue to be a favored choice for foreign investors.
ERA’s decision to discontinue the renewal fee coverage also addresses a recurring issue of inactive agents switching between agencies solely for the fee coverage. As a result, the firm has seen a modest reduction of around 300 agents, mostly inactive or part-time agents with no transactions in the past year.
On the other hand, ERA has also welcomed approximately 230 new professional agents who joined the agency on January 1, highlighting its continued appeal to active and aspiring real estate agents. This shows that ERA remains a top choice for agents who are dedicated to their career in real estate.
Marcus Chu, CEO of ERA Singapore, says, “The CEA is currently reviewing the need to implement a minimum transaction requirement for real estate salespersons. This underscores the importance of active participation and continuous professional development in the industry.” He also 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.”