A sterner deal for property agents now

A sterner deal for property agents now

Freelancing may end; agents will have to pass exam

By UMA SHANKARI

(SINGAPORE) The government has proposed ways to regulate property agents here.

To start with, their activities will be monitored more closely and rules enforced more keenly. A new government agency will be created to take on the enhanced regulatory powers.

A recognised accreditation body for agents will be formed. It will create and maintain a public central registry listing all accredited agents so that consumers are able to ascertain that the agent they engage is qualified.

The Ministry of National Development (MND) is also looking at whether industry players can work with government to set up an independent tribunal specialising in real estate disputes. ‘Such a set-up would send a strong signal on the industry’s commitment to enhance fair dealing and raise professional standards,’ said the ministry.

MND is also proposing that real estate agents should no longer be allowed to be freelancers (agents who are not contracted with any accredited agencies). It also wants to prevent them from representing more than one agency.

Agents must also pass an industry examination and be accredited by the accreditation body (which will be set up next year) before they can practise.

Key elements of the new framework are expected to be announced in December 2009 to January 2010. Legislative enactment is expected by the second half of 2010.

‘The new regulatory framework seeks to achieve two objectives: one, to enable consumers to better safeguard their interests through public education and robust regulations, and two, to increase the professionalism of the real estate industry,’ said MND in a statement yesterday.

The proposed framework comes as the number of complaints against property agents have been rising in recent years. The Consumers Association of Singapore (Case) received 1,100 real estate-related complaints last year, 1,055 in 2007 and 991 in 2006. This year, it received 727 complaints from January to September.

Minister for National Development Mah Bow Tan commented in March this year that the status quo was ‘not tenable’ and that the whole system was ‘not satisfactory’.

With this in mind, MND and other relevant agencies have been studying ways to strengthen the regulatory framework over the past few months. Various stakeholders were consulted, such as industry associations, real estate agency directors, individual agents, Case, and the Real Estate Developers’ Association of Singapore (Redas). MND is now is seeking public feedback.

The framework is likely to focus on residential property transactions as a start as the bulk of complaints are related to purchase of residential properties by individuals - particularly in the HDB resale market.

The proposed framework will also require property firms to take greater responsibility for their agents’ actions. Agencies, for example, will be required to put in place complaints-handling processes, including a mediation platform at the agency level in the event of a dispute.

The regulatory authority will also work with the accreditation body to establish a disciplinary framework to take action against non-compliance or infringement of accreditation requirements. If agencies and/or agents are found to be guilty, they will face disciplinary action in the form of demerit points and possible warnings, fines, suspension and expulsion.

Agencies that are unable to exercise enough control over their agents may also be subject to punitive measures such as restriction on recruiting more agents.

Industry players said that the framework could help usher in better standards of practice to an industry that is right now almost entirely self-regulated. ‘I think the impact will be towards greater professionalism and more protection for the consumer,’ said PropNex CEO Mohamed Ismail.

Market watchers also said that if the proposed regulatory changes are implemented, the number of agents could fall by as much as 20 per cent as those who are not prepared to sit for the industry examination could make an exit. Right now, there are an estimated 25,000 to 30,000 real estate agents in the market with varying degrees of training and professional standards.

Source : Business Times - 13 October 2009

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Recession over - but a hard climb ahead

Recession over - but a hard climb ahead

Contraction for 2009 now expected to be just 2-2.5%; outlook for 2010 subdued

By ANNA TEO

(SINGAPORE) While the full-year growth forecast for the Singapore economy has been hiked sharply after two resurgent quarters, the 2010 outlook is somewhat more subdued, the government says.

The recession may have ended but GDP growth in 2010 is expected to be slower than in previous post-recession periods, says the Monetary Authority of Singapore (MAS).

Advance estimates of third-quarter GDP growth show a 0.8 per cent year- on-year rebound - the first positive number after three negative quarters. The on-quarter sequential growth of 14.9 per cent is also in line with market expectations. And Q2 figures, meanwhile, have also been revised up.

The continued expansion of biomedical and electronics output, and improvements in the trade-related and tourism sectors spurred growth, the Ministry of Trade and Industry (MTI) said yesterday, as it revised the official forecast for 2009 to a 2-2.5 per cent contraction. The previous forecast was a 4-6 per cent contraction.

MAS - which yesterday kept monetary policy unchanged by maintaining its neutral stance on the Singapore dollar - says the economy is not expected to sustain the robust pace of Q2 and Q3, especially with the key export markets yet to recover decisively.

With the global backdrop still highly uncertain, the Singapore economy is ‘likely to settle at a more gradual pace of expansion’.

- MAS

With the global backdrop still highly uncertain, the Singapore economy is ‘likely to settle at a more gradual pace of expansion’, MAS says.

MTI, meanwhile, also reckons that economic activity will probably remain below pre-crisis levels, and growth in 2010 may well be dampened and uneven.

While ‘one-off factors such as restocking activities and fiscal stimulus measures will continue to support growth in the near term’, a sustained pick-up in private spending and investment in the developed world is needed to support growth momentum into the second half of 2010, it says.

But the risk of ‘a return to recessionary conditions is low in the absence of further financial shocks’, it adds.

The cautious tone of the official remarks appears to have rubbed off on some private sector economists, many of whom have been highly bullish of late.

Still, some expect the flash Q3 GDP figures - which are based on only July and August data - to be revised up in due course.

While Barclays Capital took the cue from the Q3 figures to raise its full-year forecast to a 1.5 per cent decline, from minus 2.5 per cent previously, United Overseas Bank (UOB) is staying with its minus 3.3 per cent projection, ‘although there could be an upside bias’.

UOB economists believe that the manufacturing sector ‘could see some downward pressure in Q4′ as it has been largely driven by the volatile pharmaceuticals, and the electronics cluster hasn’t recovered.

They also note that the official forecast suggests, at best, a sequential contraction of around one per cent in Q4.

Macquarie Securities’ Rajeev Malik says he is maintaining his 2010 GDP forecast of 5 per cent growth.

‘The one-off sizeable positive impact of restocking will not be repeated next year and the economy will have to rely more on the below-trend improvement in final demand in the industrialised economies.’

Morgan Stanley’s economists, looking at 4 per cent growth in 2010, also believe recovery will be uneven.

Global growth next year will likely be slower than during 2004-2007 at 3.7 per cent, they say. And given the low-labour intensity of the biomedical growth engine, and with ‘capex recession’ likely to persist for a while yet, ‘we suspect labour market conditions are also likely to remain soft’.

DBS Bank’s economists say that the September export figures to be released later this week will show some tech payback.

‘Fundamentally, it probably reflects the gradual tapering-off in the pace of the global recovery as well as demand. But rather than viewing this as the recovery losing steam, we believe it is consistent with the recovery process and the economy will likely shift towards a steadier and more sustainable pace of growth going forward.’

Daiwa Securities’ PK Basu, meanwhile, is looking at 6.7 per cent growth in 2010, following a 0.6 per cent decline for 2009. The key indicators, from electronic output to visitor arrivals, are well on the mend, and the Q3 numbers will be revised up.

And, with the improved economic outlook, the economists also note that MAS has flagged the prospect of higher oil and food prices as inflation risks for 2010.

Source : Straits Times - 13 October 2009

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MINDY YONG

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Move to ban ‘one agent for buyer and seller’ under study

Move to ban ‘one agent for buyer and seller’ under study

By Jessica Cheam

THE Government is contemplating a move to ban property agents from engaging in the widespread practice of representing both the seller and buyer of an HDB flat in the same transaction.

The idea is set to get the thumbs up from home buyers and sellers, but could leave some agents unhappy at a potential loss of commission income.

The proposal was released yesterday by the Ministry of National Development (MND) to raise industry standards. The move would ensure that agents are ‘not in a conflict-of-interest position’, it said.

Currently, many disputes arise because an agent represents both buyer and seller in the same HDB resale transaction.

The practice means the seller’s agent often gets a commission from the buyer as well and may refuse to sell to a certain buyer if no commission can be made.

In other words, the agent may not be trying his best to achieve the best price.

For example, suppose a seller’s agent gets an offer of $300,000 for an HDB flat from a direct buyer willing to pay a commission. He gets to collect 2 per cent in fees from the seller and 1 per cent from the buyer. All up: $9,000 in commission.

But suppose another buyer comes along with his own agent and offers $320,000. Although the price offered is higher, the seller’s agent might refuse to cooperate with the buyer’s agent as the potential commission is lower at $6,400 than if it was a direct buyer.

This practice presents a clear conflict of interest - sellers naturally want the highest price for their property, and buyers want to pay the lowest, MND said in a statement.

‘The same agent cannot possibly discharge his professional duties to both equally and represent both their interests fully.’

However, MND noted that flat buyers may need an agent’s administrative help, and proposes the seller’s agent be paid a fixed administrative fee to help buyers process the paperwork. Alternatively, buyers could engage their own agents or even handle the transactions themselves.

Agency bosses yesterday acknowledged that this move might be unpopular with property agents as it will hit their commission cheques.

‘This could be a big issue for agents since this practice has been adopted for many years now,’ said ERA associate director Eugene Lim. Still, ERA supports the move if it protects the consumer by preventing conflicts of interest, he said.

PropNex chief executive Mohamed Ismail said it is common for some agents to refuse to co-broke in order to earn larger commissions. Co-broking is where a seller has one agent and a buyer another.

‘In the longer term, agents will not lose out as it levels the playing field. All agents will have to co-broke, and everyone will get his rightful commission,’ he said.

Mrs Loh Jo Lyn, 28, is one home buyer who had a bad experience buying an HDB flat when her bid through her agent was rejected by another agent who wanted a direct buyer.

‘This is definitely moving in the right direction. The industry needs more regulation to protect sellers and buyers,’ she said.

Source : Straits Times - 13 October 2009

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MINDY YONG

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mindy@mindyyong.com

Reinvented portal extends its Reach

Reinvented portal extends its Reach

By Radha Basu, Senior Correspondent

BLOGS were buzzing, opinions were flying, citizens were sounding off. But when engineer Lai Chee Fan entered the fray last week over the latest hot topic to excite us all, he chose the online forum that is fast becoming the preferred cyber soapbox for concerned Singaporeans.

Reach, the Government feedback portal, increasingly finds itself as the benign host at the eye of many an online storm as people such as Mr Lai give their two cents’ worth.

These past few days, it has been the furore over a China-born, Singapore permanent resident who marched in her country’s national day parade.

Referring to what he termed a ‘vicious outcry’, Mr Lai pointed out that there were plenty of Singaporeans who were PRs of other countries who celebrated on Aug 9, Singapore’s National Day.

‘Why so much hypocrisy, Singaporeans?’

It might seem odd that Reach, once a purely vanilla-flavoured site to gather feedback on government policies, should be the forum for such exchanges.

But the portal has reinvented itself with a vengeance.

The process involved a name change to Reach three years ago to the day yesterday and a top-to-toe makeover.

Three-year-old Reach an active portal for views

‘We have moved far beyond being just a government postbox,’ said Reach chairman Amy Khor.

‘Our focus now is to gauge ground sentiments, engage citizens and allow them to suggest ways to improve public policies or promote alternative policies.’

It has certainly clicked with Singaporeans lately. The number of unique visitors to the portal has increased threefold over the past year.

More than 205,000 individuals logged on in the first nine months of this year compared with only 49,000 in the same period last year.

And the total number of visits increased from 141,000 last year to 634,000 this year for the same nine-month period, culminating in more than two million page views.

There have been nearly 15,000 posts for the first nine months of this year, compared with only 7,700 for all of 2007. Reach’s workforce has grown from 15 in 2006 to 18. On critical issues, the debate is often vigorous and sometimes critical of government policy.

The spike in visits to the website - although still modest when compared with some news and entertainment sites - showed that Reach had made ‘encouraging progress’ in meeting its aim of engaging citizens in policy and public life, said Dr Khor.

Reach has made a point of being far more inclusive than the former feedback unit. It not only solicits feedback on specific government issues, but allows people to initiate their own threads and discussions on what they reckon are the hot-button issues of the day.

This year, only 200 threads have been initiated by Reach staff seeking feedback. The Budget and the Prime Minister’s National Day Rally Speech were two of the bigger issues.

Yet, the site’s users initiated 700 threads on all manner of topics, with the marching Chinese PR and parental anger over the maths paper for the Primary School Leaving Examination being two of the latest ones.

But nothing has ignited the online community like the topic of whether there is a ‘gay agenda’ in Singapore.

Almost 2,000 replies flooded in, with opinions flying from all directions. While one camp said Singaporeans should embrace diversity and be more tolerant of homosexuality, the other insisted that the homosexual lifestyle is not right.

Art therapist Kia Yu, 43, made several posts, reinforcing the increasingly key role Reach is playing.

‘Singapore needs more concerned citizens to speak up to let our leaders know how we feel about important issues,’ she said. ‘Reach gives us that valuable chance.’

Not surprisingly, some posts on controversial topics such as homosexuality and the foreigner-immigrant debate can be considered incendiary.

While seditious posts are removed, Dr Khor said she preferred forums to be moderated ‘with a light touch’.

Reach does not track how many seditious posts are removed every year, but Dr Khor said such instances are ‘extremely rare’.

People could ‘freely and frankly express their views’, but if some of these were deemed too extreme, other contributors jumped in to knock them down, she said.

‘Self-policing helps to ensure that extreme views are always challenged.’

Aside from the Discussion Corner, where anyone is free to leave a view, Reach has a section called Talk Abuzz that summarises the latest issues being discussed and the Government’s response to them.

Reach staff also present monthly summary reports to various ministries on talked-about issues that they feel could impact public policy.

There have already been several instances when feedback from portal contributors has fed into actual policy, said Dr Khor, adding that while not all ideas can be implemented, they will all definitely be ‘heard and considered’.

When the old-age annuity scheme CPF Life was first mooted in 2007, for instance, payouts were meant to start only at age 85.

But after extensive feedback from Reach contributors, among others, the Government tweaked the scheme, allowing payouts to begin between age 62 and 65.

It is this desire to get their views considered by the Government that is motivating members of the Internet savvy Generation Y to turn to Reach as well, said full-time national serviceman Soh Yi Da.

The self-confessed news junkie said he is very interested in ‘offering suggestions on how Singapore can improve as a society’.

Aside from reading local and foreign newspapers daily, Mr Soh, 20, regularly visits ‘alternative news websites’ that are critical of government policy.

He said that when it comes to making suggestions or offering comments, he always chooses Reach.

‘Such portals allow ordinary citizens to serve as the eyes and ears of the Government and play an active role in shaping the future of the nation,’ said the former Hwa Chong Institution student who hopes to study public policy at university.

Fellow contributors such as Mr Lai agree. The father of two grown children makes at least two posts every week offering suggestions on ways to ‘improve Singapore’.

At 59, ageing in Singapore is an issue close to his heart and something he regularly writes to Reach about.

He recently suggested that the Government spend $108 million to give Singaporeans above 85 a $300 monthly allowance, which could be deducted from the $6.5 billion earned in goods and services tax over the past financial year.

Another suggestion was to install electronic display boards to state when the next bus is arriving in Housing Board heartland such as Bishan.

His first suggestion was ignored, but the second one was taken up.

‘As a citizen who cares for this country, I just want to make my views heard,’ said Mr Lai.

‘Whether those in Government listen or not is up to them.’

Source : Straits Times - 13 October 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com