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What is the normal commission for agents?
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In Singapore, the commission rates for property agents can vary but generally follow some standard practices:
For Sales
- Non-landed private properties (e.g., condos): Sellers typically pay a commission of 2% to 4% of the sale price.
- HDB resale flats: Sellers usually pay a 2% commission, while buyers may pay a 1% commission, which is often covered by the seller's agent as part of their 2% commission.
- Landed properties: Sellers often pay a 2% commission, though this can be higher and is negotiable. Starting July 2024, buyers may also be asked to pay a buyer’s agent fee, anticipated to be around 0.5% to 1% of the sale price.
For Rentals
- Rentals above S$3,500 per month: The landlord's agent typically collects one month's rent as commission for a two-year lease. For rentals below S$3,500 per month, the landlord's agent collects one month's rent for a two-year lease and half a month's rent for a one-year lease. Tenants may also pay a commission, usually one month's rent for a two-year lease and half a month's rent for a one-year lease, if they have an agent.
General Guidelines
- There is no fixed commission rate set by regulatory bodies; rates are negotiable between the client and the agent.
- Agents are prohibited from collecting commissions from both the buyer and seller in a single transaction.
- Commissions should be agreed upon and documented in a written agreement before the transaction.
- GST may be applicable on the commission if the agent's agency is GST-registered.
These rates and practices can vary based on the specific agreement between the client and the agent, as well as the type of property and the services provided.
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