Some property agencies have adjusted their policies in response to the CEA's review. ERA, for example, discontinued coverage of renewal fees for its agents since Jan 1. New agents will, however, continue to have these fees paid by ERA for the first two years.
The agency said the change allows resources to be allocated to other initiatives and addresses the trend of inactive agents switching agencies to benefit from fee coverage.
ERA said it has since lost about 300 agents, most of which were inactive or part-time agents with no transactions in the past year. These departures were partly offset by the addition of 230 new agents.
PropNex said it does not cover renewal fees, saying that renewal of an agent's licence is an individual responsibility.
“This policy has contributed to a high number of active salespersons and the strong performance of our agency. This also fosters accountability, helping us maintain a highly engaged and committed salesforce,” said chief agency officer Eddie Lim.
Other agencies, such as OrangeTee & Tie, continue to pay agents' renewal fees. It said it has been doing so since 2022 to help agents with business costs.
Asked if it might change its policy, CEO Justin Quek would only say that the agency continually reviews its policies to ensure they align with market demands and the company's long-term goals.
Huttons Asia said support for the annual fees for its agents is given out on a “circumstantial basis”.
For example, it did so when the property market took a hit at the start of the COVID-19 pandemic. Realtors who achieve specific gross commission levels also get subsidies for their fees the following year, said CEO Mark Yip.
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The agency said the change allows resources to be allocated to other initiatives and addresses the trend of inactive agents switching agencies to benefit from fee coverage.
ERA said it has since lost about 300 agents, most of which were inactive or part-time agents with no transactions in the past year. These departures were partly offset by the addition of 230 new agents.
PropNex said it does not cover renewal fees, saying that renewal of an agent's licence is an individual responsibility.
“This policy has contributed to a high number of active salespersons and the strong performance of our agency. This also fosters accountability, helping us maintain a highly engaged and committed salesforce,” said chief agency officer Eddie Lim.
Other agencies, such as OrangeTee & Tie, continue to pay agents' renewal fees. It said it has been doing so since 2022 to help agents with business costs.
Asked if it might change its policy, CEO Justin Quek would only say that the agency continually reviews its policies to ensure they align with market demands and the company's long-term goals.
Huttons Asia said support for the annual fees for its agents is given out on a “circumstantial basis”.
For example, it did so when the property market took a hit at the start of the COVID-19 pandemic. Realtors who achieve specific gross commission levels also get subsidies for their fees the following year, said CEO Mark Yip.
Continue reading...