Debated in Parliament on 3 Aug 2021.
Mr Chua Kheng Wee Louis asked the Minister for National Development (a) over the last five years, what is the annual range, median and average commission rates paid by housing developers to their appointed sales agents; and (b) whether the Government is looking to regulate or mandate the disclosure of such commissions paid by property developers.
Mr Deputy Speaker, the Government does not collect data on sales commissions paid by housing developers to their appointed sales agents.
The commissions paid by housing developers to their sales agents are a private contractual arrangement and the Government does not require this information to be disclosed.
Mr Louis Chua.
I thank the Second Minister for her response to the Parliamentary Question. Just one supplementary question. I see from a February report in The Business Times (BT) where the journalist mentioned that the Urban Redevelopment Authority (URA) is looking into property agents' commissions and engages developers regularly to obtain information and provide feedback.
So, I was just wondering if this is something that is going to be of a regular occurrence in terms of collecting commission-related information from developers and whether or not there are plans to then look into the regulation on this? Or is it mainly a private contractual agreement, as the Minister mentioned?
Mr Deputy Speaker, I am not familiar with the specific wording of that report and, perhaps, in order for me to address that question, does Mr Louis Chua have the exact wording of the report?
Thank you. In terms of the exact wording, based on what is in the BT article, it was quoted that a URA spokesperson said, "URA does not regulate the commission rates paid by developers to their appointed sales agent. As part of our monitoring of the property market, we engage developers regularly to obtain information and provide feedback."
I thank Mr Chua for that clarification. So, the report said that URA does not regulate the commissions. In fact, URA does not ask for information on the commissions. I think he also said that the report said that the Ministry would engage the developers for information and provide feedback. I think the engagement of developers is something URA and the Ministry does regularly, but specifically on sales commissions, as I have mentioned, the Government does not collect data on that; and that is a private arrangement between the developers and the sales agents.
Mr Dennis Tan, next question.
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