Property Agent Commission in Singapore Guide: Market Rates and Practices

Singapore’s real estate market is complex and highly regulated, making property transactions challenging for buyers, sellers, landlords, and tenants alike. While engaging a property agent is not mandatory, doing so is often advisable – particularly when navigating government regulations, market fluctuations, and administrative processes where errors can be costly.

This guide covers everything you need to know about property agent commission in Singapore. These include how much to pay, who pays whom, what is included, how to negotiate, and the latest industry practices under the new co-broking framework.

 

Property Agent Commission Rates Are Negotiable – There Are No Fixed Rules

The Council of Estate Agencies (CEA) does not set commission rates. All rates are negotiable between client and agent. The figures below reflect current market norms that have been stable for years, but they are always subject to agreement.

Whatever rate you settle on, ensure it is documented in the CEA Prescribed Estate Agency Agreement before work begins – this is your primary consumer protection.

Commission is always paid to the property agency, not to the individual agent, and only upon successful completion of the transaction. For sales, this means after keys are handed over. For HDB resale, commission is typically deducted from sale proceeds on completion day.

Never pay commission upfront or before a deal is finalised.

If GST applies, it is charged on top of the commission and only by GST-registered agencies. On a 1% commission for a $600,000 flat, that is $6,000 in commission plus $540 GST – a total of S$6,540. Always confirm whether GST applies before signing.

 

Buying and Selling: Singapore Property Commission Guide

Property Type	Seller Pays	Buyer Pays
HDB Resale Flat	~2%	~1%
Non-Landed Private (Condo/EC)	~2% (up to 4%)	0% (old practice) or ~1% own agent (new practice)
Landed Property	~2% (sometimes higher)	0% (old practice) or ~1% own agent (new practice)
New Launch (Developer Sale)	Developer pays agent ~2%, but can be up ~5% to clear remaining stocks	Nil

New Launch Private Properties & Executive Condos: Buyers pay no commission – the developer pays the agent directly, typically around 2%, but may be raised to clear remaining stocks. This creates an incentive for some agents to favour new launches when advising clients. However, a good agent should still present the full range of options available across the market.

Landed Properties: Transactions typically involve more regulatory checks and complexity, so commissions are more negotiable and may exceed 2%. In the luxury segment (properties above $5 million), tiered commission schemes are sometimes used. For example, a 2% commission rate at the minimum asking price and a higher percentage earned if the final sale price exceeds that threshold. This must be agreed and documented before marketing begins.

Commission Calculati0n Examples: On a $600,000 HDB resale, both the seller’s and buyer’s agents earn $6,000 each at 1%. On a $2 million condo at 2%, the seller’s agent earns $40,000 – leaving considerably more room for negotiation than a lower-value transaction.

 

Rental: Property Agent Commission Guide

Scenario	Landlord Pays	Tenant Pays
Above $3,500/month, 2-year lease	1 month	1 month (if own agent engaged)
Above $3,500/month, 1-year lease	Half month	Half a month (if own agent engaged)
At/below $3,500/month, 2-year lease	1 month	1 month (if own agent engaged)
At/below $3,500/month, 1-year lease	Half month	Half a month (if own agent engaged)

If a tenant contacts the landlord’s agent directly without their own agent, the tenant pays no commission. These are common practices, not fixed rules.

Notable exceptions: For highly sought-after properties, a landlord’s agent may refuse to co-broke due to sufficient demand. However, this is against the Council for Estate Agencies (CEA) Practice Guidelines on co-broking, which states that it is compulsory.

At the lower end of the market, such as room rentals below $1,000/month, a landlord may refuse to pay commission. Hence, the agent may collect from the tenant instead, effectively switching to represent the tenant’s interests.

Co-broking regulatory loophole: The only legal exception is that the landlord has specifically instructed the agent in writing not to co-broke. In a hot market, a landlord might do this to avoid paying a higher commission or because they know they can find a direct tenant easily.

 

Dual Representation By Property Agent & Co-Broking

Agents are prohibited by law from acting as both the landlord’s/seller’s agent and the tenant’s/buyer’s agent for the same transaction. This is due to the inherent conflict of interest, which could negatively affect the best outcome for either party.

For rentals, the landlord’s agent (and occasionally the tenant’s agent) may aid both parties throughout the lease term. They may help address any maintenance issues or disputes that may arise during the course of the tenancy. However, they are not legally obligated to do so.

The term “co-broke” or “co-broking” refers to the collaboration between two agents who mutually agree to facilitate a transaction. One agent represents the landlord/seller, while the other agent represents the tenant/buyer.

 

Tactics Used to Avoid Co-Broking

Co-broking is encouraged by the CEA to facilitate the completion of a property transaction in the shortest time possible. However, as the co-broking arrangement and commission sharing will have to be negotiated between the agents, this has led to unethical conduct by some, which include the following:

• Block co-broking to pocket the full commission.
• Ghost other agents by deliberately ignores messages, delays replies for days, or claims they “missed the notification.
• Invent fake seller rejections or phantom competing offers.
• Restrict viewings to impossible hours.
• Actively attempt to poach the buyer directly.

 

The New Co-Broking Framework

To address the issue of unethical and unprofessional conduct of property agents who refuse to co-broke the SEAA (Singapore Institute of Estate Agents) Best Practice Guide for Co-Broking Commission was officially launched on 14 November 2023 at the Singapore KEOs and Leaders Conference.

This was backed by Memorandums of Understanding (MOUs) signed with 16 founding estate agencies – collectively representing 88% of all registered real estate salespersons in Singapore at the time. The guide came into effect on 1 July 2024.

The core principle is straightforward. Each agent collects commission only from the party they represent. The buyer’s agent is paid by the buyer, the seller’s agent by the seller, and the same applies to rental transactions.

This practice aligns Singapore with most real estate markets globally, where agent representation and payment are clearly defined.

 

Why the Change Was Necessary

Under the old co-broking model, the seller’s agent collected the full commission and voluntarily shared a portion with the buyer’s agent. This created a structural conflict of interest – a buyer’s agent’s income depended on whether the seller’s agent chose to co-broke, and at what rate.

In practice, this led some buyer’s agents to steer clients towards listings offering the highest co-broking commission share rather than the most suitable properties. The buyers, represented by their agents, were thus paying for representations that were not in their best interests.

As industry leaders noted, buyer’s agents were sometimes perceived as “tour guides” shuffling buyers between viewings, rather than trusted advisors.

The new framework changes that dynamic. By requiring buyers to pay their own agents directly, it establishes a clear duty of loyalty and creates a financial incentive for buyers’ agents to deliver genuine services and value.

 

Who Have Adopted the New Co-Broking Framework

The new framework, launched on 14 November 2023, was backed by 16 founding signatories, which include the industry’s largest players:

• PropNex Realty.
• ERA Realty Network.
• Huttons Asia.
• OrangeTee & Tie.
• SRI (Singapore Realty Inc.).
• Century 21.
• SLP International.
• Mindlink Groups.
• Landplus Property Network.

Subsequent signatories include a broad mix of mid-size and boutique agencies. Hence, regardless of which agency your agent belongs to, there is a very high probability that they operate under the new framework.

As of February 2025, the number of signatory agencies that have adopted the new framework had grown to 82 by mid-2026, representing about 90% of the real estate industry.

 

Old vs New Practice at a Glance

Transaction	Old (Legacy) Prctice	New (Client-Pays-Own-Agent) Practice
Condo/landed resale	Seller pays ~2%; buyer pays nothing	Seller pays seller’s agent; buyer pays buyer’s agent ~1%
HDB resale	Seller pays ~2%; buyer pays ~1%	Each party pays their own agent directly
Rental	Landlord agent splits commission with tenant agent	Each party pays their own agent directly

It is worth noting that HDB resale transactions already followed a similar structure before the new framework – sellers and buyers each paid their own agents independently – so the impact of the new co-broking framework is most pronounced in private residential transactions.

 

Is the New Co-Broking Framework Compulsory?

The guide is not legally binding – it is a best practice standard, not a regulatory mandate from CEA.

However, with about 90% of agents now under agencies that have signed the MOU, it has effectively become the market norm. Agents who operate under signatory agencies are expected to follow the guide’s principles, and disputes arising from co-broking arrangements can be referred to SIEA’s mediation and arbitration schemes.

 

What Does the Property Agent Commission Cover?

Your commission pays for a defined scope of services. Standard inclusions are:

• Comparative market analysis.
• Pricing advice.
• Property listings on major portals.
• Basic photography.
• Viewing coordination.
• Key paperwork, such as the Option to Purchase or HDB resale application.

Some agents offer premium add-ons, such as drone photography, 3D virtual tours, video walkthroughs, and staging services, which may or may not be included at the standard rate.

Before signing, ask explicitly what is covered. Negotiating on scope (getting a 3D tour included at the standard rate, for example) is often more effective than simply pushing for a lower percentage.

 

How to Negotiate Commission Effectively

Although the property agent commission is negotiable, approach it thoughtfully. A lower rate can mean reduced marketing investment and lower priority for your listing. Before negotiating, consider the following:

• Negotiate scope, not just rate: Ask what premium services can be included at the standard commission – professional photography, video, featured portal placement.
• Factor in property value: Higher-value properties offer more room for rate negotiation because the absolute dollar amount is larger.
• Multiple agent listings: Different agents using different pricing strategies can confuse the market and suppress your eventual sale price. A single exclusive agency agreement (typically three months, renewable) consistently produces better outcomes.
• Documentation: Commission rate, scope of services, and duration must all be documented in the CEA Prescribed Estate Agency Agreement before work begins.

 

Should You Skip the Agent to Save on Commission?

The stakes in Singapore property transactions are too high to treat commission savings as the primary objective. Transactions involve layers of regulation – stamp duties, CPF rules, HDB eligibility requirements, legal documentation – where an experienced agent’s guidance can prevent errors that cost far more than the commission saved.

Their negotiation skills and market knowledge often recover that cost through a better sale price or rental rate.

For landlords, agents are particularly valuable for tenant screening. For tenants, having your own agent representation provides a safeguard against fraudulent listings and unreasonable landlord demands.

In addition, a property agent can provide valuable advice on key factors when selecting the right property with strong investment potential, be it an HDB flat, executive condo, or private property.

In all cases, verify that your agent is CEA-registered. This confirms they are licensed, in good standing, and bound by CEA’s code of conduct – and it takes less than a minute to check.

 

FAQs (Frequently Asked Questions)

1. Do I pay property agent commission if I buy a new launch condo?

No, the developer pays the agent’s commission directly. The buyer pays nothing.

 

2. When is agent commission paid?

After successful completion of the transaction. Never pay upfront.

 

3. Is GST always charged for property agent commission?

Only if the agency is GST-registered. Confirm this before signing.

 

4. Is the new co-broking framework compulsory?

It is a best practice standard, not a legal requirement. However, with about 90% of agents now signed up, it is effectively the industry norm.

 

5. Can I negotiate agent commission below 1%?

Yes, but weigh the potential reduction in service quality against the savings, particularly for higher-value properties where professional marketing makes a meaningful difference to the final price achieved.

 

6. What services do property agents provide?

Property agents offer a wide range of services, including property search and selection, property valuation, marketing and advertising, negotiation, paperwork assistance, and sometimes after-sales support.

 

7. When does the property agent’s responsibility end?

Once the transaction is completed. Post-completion assistance is on a goodwill basis only.

 

8. How can I verify a property agent’s credentials?

You can verify a property agent’s credentials by checking their registration status with the Council for Estate Agencies (CEA). The CEA provides a public register where you can search for the agent’s name to ensure they are licensed and in good standing.

 

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Other Property Resources

• Singapore Property Market Overview.
• Understanding Singapore Property Policies & Financing Options.
• Choosing a Housing Loan.
• Singapore Property Rules for Foreigners.
• How to Buy an HDB BTO Flat.
• Executive Condo Eligibility Criteria.
• En Bloc Sale Guide.