How Property Agents Are Paid in Singapore: A Clear Guide
Buying, selling, or renting a home in Singapore almost always involves a property agent — but many people have no clear idea how agents are paid, who foots the bill, or whether the fees are negotiable. Understanding this upfront helps you budget accurately and engage agents with confidence.
Who Regulates Property Agents in Singapore?
All property agents in Singapore must be registered with the Council for Estate Agencies (CEA), the statutory board that licenses agents and enforces the Code of Ethics and Professional Client Care. Before engaging anyone, verify their registration on the CEA Public Register at cea.gov.sg. An unregistered person collecting commission for a property transaction is acting illegally.
Agents operate under a licensed estate agency (the firm). Their conduct — including how commission is documented — must comply with CEA's rules.
How Commission Works: The Basics
There is no government-mandated commission rate in Singapore. Fees are negotiable between client and agent. That said, market norms have emerged over years of practice, and understanding these norms helps you gauge what is reasonable.
Commission is typically a percentage of the transaction price (for sales) or a portion of the monthly rent (for leases). It is paid upon successful completion — not upfront.
HDB Transactions
Selling an HDB Flat
The seller typically pays their own agent. The widely accepted market norm for HDB resale is around 1% of the sale price, though this can vary. On a flat sold at S$600,000, that works out to roughly S$6,000 — but again, rates are negotiable, and some agents may quote a flat fee instead.
If you want to understand the full selling journey before discussing fees, Selling Your HDB Flat: A Step-by-Step Guide for Owners walks through every stage from valuation to key handover.
Buying an HDB Resale Flat
Historically, HDB buyers were often not charged commission — the seller's agent would be co-broking (sharing commission) with the buyer's agent from the seller's side. However, this practice has been shifting. Today, many buyer's agents for HDB resale transactions charge the buyer a fee, often in the range of 1% of the purchase price, because CEA guidelines require clear documentation of who the agent represents and who pays them.
Always clarify in writing at the start of engagement:
- Who the agent represents (you, the other party, or both as a dual agent)
- Who pays the commission and how much
If you are navigating the resale buying process for the first time, Singapore HDB Resale Process: A Complete Buyer's Guide gives a full picture of what to expect.
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- Is there a fixed commission rate for property agents in Singapore?
- No, there is no government-mandated commission rate in Singapore. Commission is negotiable between the client and the agent, though market norms have developed over time — for example, around 1% for HDB resale sales and 1%–2% for private property sales. All agreed fees must be documented in writing before the agent starts work.
- Who pays the buyer's agent commission in a Singapore HDB resale transaction?
- In HDB resale transactions, the buyer's agent fee is increasingly charged directly to the buyer, often around 1% of the purchase price, though this is negotiable. Historically, buyer's agents were co-broking from the seller's commission, but CEA guidelines now require clear documentation of who the agent represents and who pays them, making direct buyer-pays arrangements more common.
- Do buyers of new launch condos in Singapore pay agent commission?
- No, buyers of new launch condominiums in Singapore do not typically pay agent commission directly. The developer pays the agent's commission as part of their marketing budget, which is factored into overall project costs. Buyers should still confirm this arrangement with their agent before proceeding.
- What is co-broking in Singapore property transactions?
- Co-broking is when the seller's or landlord's agent shares a portion of their commission with the buyer's or tenant's agent. In practice, this means the buyer or tenant may pay nothing directly to their agent, as the payment flows from the seller's or landlord's side. The internal commission split between the two agents is their own arrangement and does not affect the buyer's or tenant's obligations.
- How much commission is typical for rental transactions in Singapore?
- For rental transactions in Singapore, the widely accepted market norm is around half a month's rent per side for a one-year lease, and one month's rent per side for a two-year lease. These are conventions, not fixed rules, and can be negotiated. All commission arrangements should be agreed and documented in writing before the agent begins marketing the property or arranging viewings.