Will the new HDB resale listing portal really cut out agents?

In fact, I'd want it to be bigger and have all the listings. Far from a threat of being "cut out", the resale portal can actually make life easier for agents in many ways; and if HDB is cutting out unrealistic prices, that probably helps to temper expectations too. 

At the very least, it might bring an end to property portals that have effectively cornered the market, forcing agents to spend jaw-dropping amounts on marketing. Ask some veteran agents, and they'll tell you that the cost of advertising on portals is even higher than in the days of classified newspaper ads and flyers. Having all the resale listings on the HDB portal — if that ever happens — might mitigate the need to spend so much on online listings.

As to the issue of being "replaced," the resale listing portal doesn't entirely replace a realtor — it replaces a narrow segment of what a realtor does. But this is a very small part of why people still use property agents; if it was simply a matter of knowing where to sign, realtors would have vanished decades ago. We'd have an AI replacing them all by next Tuesday. 

The true value of a realtor is (at least when it comes to HDB sales), in my frank opinion, is in handling inquiries and viewings.

Everything else that they do could conceivably be replaced — you can look up property transaction histories on your own (on the URA transaction site), you can list your own unit on some (not all) portals, and you can learn quite a bit about price comparisons or projects online (that's what we're here for). 

What's essential, and difficult to be replaced, is having someone to screen out nonsense callers, conduct viewings, deal with no-shows, spend hours on negotiations, and do the little things like tidy up a unit before the next batch of viewers arrive. 

And when it comes to negotiations, a lot of people overlook the issue of language. From my experience, having an agent who can speak dialect can bring in a lot more offers; and I've seen DIY buyers and sellers lose out just because of issues like not being comfortable negotiating in Chinese, Malay, English, etc. Among older Singaporeans, who may only be comfortable speaking in a dialect, property agents are also invaluable.

There's also some people who will never feel comfortable buying or selling on their own

The fact is, your home is probably the most expensive thing you'll ever buy in your life. And when it comes to something you'll spend the next 20 to 25 years paying for, there's often a comfort in knowing a real flesh-and-blood professional is taking the time and effort to settle things for you. 

Whilst the real estate transaction process has gotten simpler, there's a non-zero chance of issues like losing the deposit (due to a lapsed Option), or being hit by unexpectedly high cash requirements (due to Cash Over Valuation). It's possible that these reasons alone will see good property agents unscathed by DIY portals. 

We've learned this from trying to cut out the property agent once before (remember, when we tried to create our own direct buy/sell property portal), and that ultimately, it's not that people want to cut out the agent — but the standards of property agents in Singapore is low and can be improved. 

Perhaps given the headwinds of cries of too many agents and this new resale listing service, we might see further streamlining of property agent numbers in the future. If it's a matter of competition that forces the quality of property agents in Singapore to increase, then that'll surely be a welcome move. 

Weekly Sales Roundup (May 6 – May 12)

Top 5 most expensive new sales (by project)

Top 5 cheapest new sales (by project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
THE MYST	$1,227,000	517	$2,375	99 yrs (2023)
LENTORIA	$1,248,000	538	$2,319	99 yrs (2022)
THE LAKEGARDEN RESIDENCES	$1,336,500	592	$2,258	99 yrs (2023)
TEMBUSU GRAND	$1,399,000	527	$2,652	99 yrs (2022)
THE LANDMARK	$1,512,000	495	$3,054	99 yrs (2020)

Top 5 most expensive resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
N.A.	$8,000,000	$4,858	$1,647	FH
THE LADYHILL	$7,228,000	$2,271	$3,182	FH
REGENCY PARK	$6,450,000	$3,175	$2,031	Freehold
CITYVISTA RESIDENCES	$5,800,000	2809	$2,064	FH
THE WHARF RESIDENCE	$5,105,000	2207	$2,313	999 yrs (1841)

Top 5 cheapest resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
STRATUM	$645,000	452	$1,427	99 yrs (2012)
PALM ISLES	$676,000	$517	$1,308	99 yrs (2011)
SPACE @ KOVAN	$690,000	$420	$1,644	FH
28 IMPERIAL RESIDENCES	$700,000	$409	$1,711	FH
KINGSFORD WATERBAY	$732,000	$484	$1,511	99 yrs (2014)

Top 5 biggest winners

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
N.A.	$3,980,000	1798	$2,214	$2,530,000	25 Years
RIVERGATE	$4,310,000	1539	$2,800	$2,424,980	18 Years
THE LADYHILL	$7,228,000	2271	$3,182	$2,028,000	15 Years
THE BELVEDERE	$3,088,000	1259	$2,452	$1,892,000	17 Years
THE STERLING	$4,500,000	1970	$2,284	$1,850,000	13 Years

Top 5 biggest losers

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
CITYVISTA RESIDENCES	$5,800,000	2809	$2,064	-$2,274,106	17 Years
SEASCAPE	$5,050,000	2680	$1,884	-$1,750,000	11 Years
MARINA BAY SUITES	$3,300,000	1572	$2,100	-$1,097,000	14 Years
ST REGIS RESIDENCES SINGAPORE	$5,080,000	2153	$2,360	-$308,000	15 Years
THE FORESTA @ MOUNT FABER	$888,000	431	$2,062	$4,400	13 Years

Transaction breakdown

ALSO READ: Welcome to the club: Sengkang sees first million-dollar resale flat

This article was first published in Stackedhomes.