A recent post on Reddit (r/Singapore) raised a few eyebrows. It’s a photo of a notice pasted at what looked like an HDB lift lobby from someone looking for a unit to buy due to them “downgrading” from retrenchment. You’re probably think “oh, you poor downgrader” and move on. However, those who’ve actually tried calling or Whatsapping the number would find out that they’re actually property agents looking for homeowners. It doesn’t take a genius to figure out why this tactic is used by an agent.
Playing the pity game
Most of the respondents in the Reddit thread knew right away that it was the work of a property agent, and not someone looking to downgrade. This is because anyone who’s looking to buy an HDB will know that there are a few rules:
The fake sob story is made up to inspire homeowners to sell at a lower “pity” rate, which the agent can then sell at a much higher price.
HDBs are the new luxury property
It’s no secret that HDBs are no longer as affordable as it once was, especially with resale prices for some units exceeding the million dollar mark recently. A record 236 million-dollar HDB flats were sold this past quarter, according to an OrangeTee researcher. The Resale Price Index (RPI), which tracks how much HDB resale flats cost, rose to 187.9 from 183.7. In simple terms, HDB resale flats are getting more expensive, and the price increase is speeding up.
With prices this high, property agents – who make a very decent commission on sales – are now turning their focus on HDB owners. There is no hard and fast rule on whether the owner should be paying their agents and how much, but the general rules is that agents get 2% of the sale price. So, if an agent gets to sell an HDB at 1 million, they’d get $20,000. It’s no wonder they’re getting very competitive!
It’s no wonder many property agents are turning to HDBs, as private home sales in 2023 hit their lowest point since 2016. Some Redditors have noticed similar notes pasted at other HDB lift lobbies across Singapore.
Property market more stable than employment?
According to the latest figures from the Council for Estate Agencies (CEA), there were 35,251 property agents in the industry as of January 1, 2024, up from 34,427 at the beginning of 2023. This could be partly due to the massive retrenchments over the past two years especially in tech sectors, with companies like Google, Amazon, Duolingo, and Twitch announcing job cuts within the first two weeks of January this year.
So it’s no surprise that more people in Singapore are jumping into the property agent game, drawn by the booming housing market and rising demand for homes. This applies to both HDBs as well as private residential properties, with prices of both types of properties increasing this year, according to URA.
This means that property agents are looking for any piece of property they can get their hands on – no matter the history or price. This includes old apartments and condos. Most of them still use a tactic of a fake sob story to get people to call them. This one wanted a “good prices” due to “elderly parents” living nearby:
This this tactic – which is rather disingenuous – may seem like a recent thing, it’s been around for years. It definitely turns more heads than a boring poster with the agent’s portrait saying “Sell Your Property”, right?
