The Ministry of National Development released today its findings on public feedback for a more regulated property industry, and PropNex Realty, one of Singapore’s leading property agencies, supports most of the feedback given.
“Indeed, most of the Government’s findings were not surprising,” says PropNex CEO Mr Mohamed Ismail. “Given the many complaints raised by consumers and suggestions given by the public in the forum, it was clear from early on that the public is concerned about quality service provided by real estate practitioners.”
“A central registry would probably be implemented,” forecasts Mr Ismail, “because there is definitely a need for greater control and monitoring of rogue agents, who are now able to switch agencies and continue their shenanigans elsewhere with other consumers.”
Professional indemnity insurance, which PropNex Realty already mandates for all its agents, is another likely measure he feels will be effected, to further safeguard consumers’ interests. “The medical and legal professions already have this,” observes Mr Ismail, “so why shouldn’t the property industry, given the high investment values of the transactions?”
Another proposed regulation was Dual Commission and the enforcement of agents acting for only one party, i.e. not both the buyer and seller.
“PropNex has always supported this,” reveals Mr Ismail, “because this encourages co-broking and drives agents to discharge their fiduciary duties in obtaining the best price possible for their client. Co-broking removes any conflict of interest and can only result in more professional service."
“Larger agencies are able to enjoy economies of scale,” he explains. “They are able to afford better training for their agents and other value-added services like legal counsel. Limiting the size of agencies would also hinder brand expansion within and outside of Singapore, restricting the entrepreneurial spirit and holding back the branding of Singapore in the real estate market.”