Are property agent commission rates fixed in Singapore?

No, property agent commission rates in Singapore are not fixed and are negotiable between the client (seller, buyer, landlord, or tenant) and the property agency/agent. The rates mentioned in this guide are typical market rates but can vary.

Do I have to pay GST on agent commission?

If the property agency is GST-registered, they will charge Goods and Services Tax (GST) on the commission payable. You should clarify this with your agent and agency beforehand.

What is a co-broke situation and how does it affect commission?

Co-broking is common in Singapore, where the seller's agent and buyer's agent (or landlord's agent and tenant's agent) work together to close a deal. Typically, the commission paid by the client (e.g., seller) is shared between their agent and the co-broking agent. The client usually only pays commission to the agent they engaged.

Property Agent Commissions in Singapore: A Guide

What is Property Agent Commission?

Property agent commission is a professional fee paid to a real estate agency (and subsequently its agent) for services rendered in facilitating a property transaction. This includes selling, buying, or renting out a property. In Singapore, these commission rates are not mandated by law; they are open to negotiation between you (the client) and the property agency or agent you engage.

It is crucial to have a clear, written agreement on the commission rate and the terms of service. This is typically done by signing an agency agreement before the agent officially begins working on your behalf.

Typical Commission Rates in Singapore

While commission rates are negotiable, the following are commonly observed market rates for residential property transactions. These can vary based on the complexity of the deal, property type, and market conditions.

1. Selling Property (HDB or Private)

Seller's Agent Commission: Generally ranges from 1% to 2% of the property's sale price.
This commission is paid by the seller to their appointed agent's agency.
In a co-broking scenario (where another agent introduces the buyer), the seller's agent typically shares this commission with the buyer's agent. The seller, however, still only pays the agreed commission to their own agent.

2. Buying Property (HDB or Private)

Private Property Purchases: If a buyer engages an agent specifically to represent their interests, the commission is often around 1% of the purchase price. Frequently, this is covered through a co-broking arrangement with the seller's agent, meaning the buyer might not pay a direct commission. This should always be clarified upfront.
HDB Resale Flat Purchases: Buyers engaging an agent for HDB resale flats may agree to pay their agent a commission, commonly around 1% of the purchase price or a pre-agreed fixed fee. This is more likely if the seller is not represented by an agent or if a co-broking arrangement isn't in place.

Important Note for Buyers: Always have a transparent discussion with your agent about any commission payable *before* committing to their services. Ensure all terms are clearly documented in a signed agency agreement.

3. Renting Out Property (Landlord's Perspective)

For a 2-year lease agreement: The landlord typically pays their agent a commission equivalent to 1 month's rent.
For a 1-year lease agreement: The landlord typically pays their agent a commission equivalent to 0.5 month's rent.

4. Renting Property (Tenant's Perspective)

For a 2-year lease (and often when the monthly rental is above a certain threshold, e.g., S$3,500 - S$4,000): Tenants usually do not pay commission directly, as their agent will co-broke with the landlord's agent, who shares their commission.
For a 1-year lease, or for lower rental amounts: The tenant may be expected to pay their agent a commission, typically 0.5 month's rent.
If the landlord is listing the property directly (without an agent), a tenant engaging an agent will likely pay their agent 1 month's rent for a 2-year lease or 0.5 month's rent for a 1-year lease.

Important Note for Tenants: Clarify any commission payable with your agent before you begin your property search. If the landlord has an agent, your agent will usually co-broke. If it's a direct owner listing, you will typically compensate your own agent.

What Services Do Property Agents Provide?

The commission paid to an agent covers a wide array of professional services tailored to their client's needs:

For Sellers/Landlords:

Providing market analysis and advising on optimal pricing strategies.
Developing marketing plans and advertising the property across various channels (e.g., online portals, print).
Arranging and conducting property viewings for prospective buyers/tenants.
Screening potential buyers/tenants.
Negotiating offers and terms to achieve the best outcome for the client.
Assisting with the extensive paperwork and administrative procedures involved in the transaction.
Coordinating with other involved parties, such as lawyers, valuers, and inspectors.

For Buyers/Tenants:

Understanding the client's specific needs, preferences, and budget.
Sourcing and shortlisting suitable properties from the market.
Arranging and accompanying clients for property viewings.
Providing insights on property values, neighbourhood trends, and market conditions.
Negotiating the purchase price or rental terms on behalf of the client.
Assisting with the offer process, paperwork, and administrative procedures.

Council for Estate Agencies (CEA) Guidelines

The Council for Estate Agencies (CEA) is the statutory board that regulates the real estate agency industry in Singapore. Key guidelines and regulations that impact consumers include:

Prescribed Estate Agency Agreements: It is mandatory for clients to sign a prescribed agency agreement with the property agency before an agent can formally represent them. This agreement must clearly state the commission rate, the scope of the agent's duties, and other essential terms and conditions.
No Dual Representation: A property agent is prohibited from representing both the buyer and the seller (or both the landlord and the tenant) in the same property transaction. They cannot collect commission from both parties for the same deal. An agent must always act in the best interest of the client who has engaged them.
Disclosure of Conflicts of Interest: Agents are required to disclose any actual or potential conflicts of interest to their clients.
Professionalism and Ethics: Agents must adhere to a strict code of ethics and professional conduct set by the CEA.

For comprehensive information and to verify an agent's registration, visit the official CEA website.

Tips Regarding Agent Commissions

Negotiate Before Signing: Commission rates are not fixed. Feel free to discuss and negotiate the rate with the agent/agency before signing the agency agreement.
Clarify All Terms: Ensure you fully understand when the commission becomes payable (e.g., upon successful completion of the sale, upon the signing of the tenancy agreement).
Ask About GST: Confirm whether the property agency is GST-registered, as GST will be chargeable on the commission if they are.
Get it in Writing: Always ensure you have a signed agency agreement that clearly documents the agreed commission rate, the services to be provided, and the duration of the agreement.
Choose a Reputable Agent: Work with an agent who is registered with the CEA and affiliated with a licensed property agency. You can verify an agent's credentials on the CEA Public Register.

Understanding these commission structures and agent responsibilities can help you navigate your property transactions more confidently. If you are planning to buy, remember to factor these potential costs into your overall budget using our Full Property Buying Calculator.