Fewer property agencies, more pressure: Rising costs and tighter rules drive industry consolidation in Singapore

SINGAPORE: The property agency scene in the city-state is quietly thinning out. While more people are still signing up as property agents, fewer firms are staying afloat, caught between rising costs, tighter rules, and an ageing pool of agency owners deciding it’s time to step away.

Government data from Data.gov.sg shows that 47 property agencies closed in 2025, leaving 998 active agencies as of Jan 1, 2026. Just three years earlier, there were 1,118 agencies. That works out to a roughly 10% drop, based on figures from the Council for Estate Agencies (CEA).

Yet even as agencies disappear, the number of agents continues to inch up. According to Huttons Data Analytics, the pool of registered agents grew 2.15% year-on-year to about 36,835 as at Jan 1. Growth, however, has been slowing down from 2.4% in 2024 and 2.2% in 2025.

Industry players say this widening gap reflects the growing strain on agencies, especially smaller, independently run outfits. Higher operational and marketing outlays, harsher anti-money-laundering (AML) guidelines, more complex training requirements, and the departure of expert agency proprietors are all driving businesses to either go out of business or merge with other groups.

The burden and difficulties ramped up further when an extended AML agenda was instigated on Jul 31, 2025. Under the new instructions, agents must make more laborious checks on customers and unrepresented entities, authenticate sources of assets and reserves for high-risk transactions, and protect against explosion funding—money related to the creation of weapons of mass destruction. The CEA said the changes bring Singapore in line with international standards set by the Financial Action Task Force.

After hearing concerns from the industry, regulators gave agencies more time to adjust. Full compliance with the revised rules is expected from Jan 1, 2026.

Still, the costs are adding up. Mr Mark Yip, chief executive of Huttons Asia, said the price of compliance has risen sharply, hitting smaller agencies hardest. Many boutique firms, he added, are run by owners in their 60s and 70s who are choosing to retire rather than grapple with the growing administrative burden.

Agencies are also facing a steep jump in continuing professional development requirements—from six hours previously to nine hours in 2025, and 16 hours in 2026. Combined with rising costs, this has accelerated consolidation as firms merge to stay viable.

For some, the decision to close is deeply personal. Madam Irene Tan, 77, shut down Chronicles Realty at the end of 2025 after running it on her own for more than 30 years.

“For the past few years, I had been relying on my friend to help me with the checks,” she said. “But the stricter requirements require a lot more paperwork and screening of clients. I am not familiar with the process, and I cannot keep asking friends for help.”

With advertising expenses climbing and margins shrinking, Madam Tan chose not to renew her agency’s CEA registration when it expired in December. Instead, she joined Ripton Realty, which handles the compliance and paperwork so she can focus on sales, in exchange for a share of her commissions.

Mr David Sing, 75, made a similar call. He closed Asia USA Realty (Singapore) Asiahomes.com and retired in 2026, citing the heavier paperwork and compliance demands following the tighter AML rules.

At Ripton Realty, key executive officer Ms Alicia Chua said Madam Tan was not alone. Four agents from another agency that closed in 2025 have also joined the firm, which now has 41 agents.

Running an agency has become significantly more expensive, Ms Chua said. Firms are expected to provide more administrative support and training, while absorbing higher marketing and operating costs. AML screening fees, she added, were already rising even before the enhanced rules took effect.

Smaller agencies also face built-in disadvantages. Unlike large firms, they lack the scale to build in-house digital systems and must pay for multiple external platforms to access transaction data—further squeezing margins.

Mr Justin Quek, deputy group chief executive of Realion (OrangeTee & ETC) Group, said agencies today are juggling not just higher costs and stricter rules but also tougher competition and increasingly demanding consumers.

“These pressures can be more challenging for smaller firms with limited resources,” he said. “While some mid-sized agencies may choose to merge in order to achieve greater operational resilience.”

Meanwhile, the biggest players continue to pull ahead. As of Jan 7, PropNex Realty remained the largest agency, with more than 14,000 registered agents. Chief agency officer Mr Eddie Lim said the firm recorded a net increase of 1,310 salespersons—a 10.37% rise year-on-year.

Looking ahead, Mr Lim expects the number of agencies to keep shrinking over the next three to five years as consolidation gathers pace.

“Agencies with strong (economies of) scale, robust compliance frameworks, and the ability to invest in technology and training will be better positioned to operate sustainably amid rising costs and regulatory expectations,” he said.

After PropNex, ERA is the second-largest agency with 8,468 agents, followed by Huttons Asia with 5,784. OrangeTee & Tie ranks fourth with 2,559 agents, while SRI rounds out the top five with 1,630 agents, according to CEA data.