New HDB Flat Portal: A game changer for real estate agents?

The new HDB Flat Portal allows buyers and sellers to interact directly, raising questions about the future role of real estate agents. 

In a bid to streamline property transactions and empower buyers and sellers, the Housing & Development Board (HDB) of Singapore has introduced a new Flat Portal, allowing direct communication between sellers and potential buyers, and sparked discussions about the future role of real estate agents in the resale market.

The primary concern surrounding the new HDB Flat Portal is whether it will diminish the need for real estate agents. According to Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia, the impact on agents may be minimal. “If the agents are already doing the transactions on their own, this portal is just something that comes in handy for them,” he explained. 

However, he noted that many HDB resale transactions are complex, involving extensions of time, contra arrangements, and intricate negotiations. “So, this will still be necessary, whether there is this flat listing portal or not,” he added.

Mark Lim, Division Associate Director at OrangeTee & Tie, AAG Division, offers a different perspective, acknowledging that the portal could indeed affect the role of agents. “This portal primarily encourages DIY among the sellers and the buyers,” Lim said. 

With direct access between sellers and buyers now more feasible, the traditional tasks of property marketing and buyer-seller matching, often handled by agents, may see a reduction in demand. “It literally takes away the job of an agent, quite drastically,” Lim remarked, suggesting that the initial stages of the resale process, including sourcing and marketing properties, may no longer require as much agent involvement.

Unchanged core responsibilities

Despite the potential challenges posed by the HDB Flat Portal, both Lim and Lee agree that the core responsibilities of real estate agents remain unchanged. Lee emphasized that agents still play a crucial role as consultants. 

“There’s still the need to help negotiate, help to manage the expectations, as well as manage all the different timelines, as well as how the finances and how they can transit out of their existing house into another house,” he said. These tasks require the expertise of agents to ensure smooth transactions, particularly in complex cases.

Lim concurred but highlighted that while the procedural aspects of resale transactions remain the same, the new portal could streamline the initial stages, potentially reducing the need for agents in those areas. “The entire resale procedure is relatively unchanged, but it is the initial part of sourcing properties and marketing of properties that may see a reduction in the agent's role,” he says.

Opportunities and challenges ahead

Lee sees the portal as a beneficial tool for agents, providing them with an additional platform to expose their clients’ properties to a broader audience. He pointed out that the portal could attract more serious buyers, those who have already secured their HDB flat eligibility, making transactions smoother. “So, in a way, it’s actually good for the salesperson,” he concludes.

On the flip side, Lim noted that the availability of comprehensive market information on the portal might shift some sellers towards the DIY market. “Market information will be more readily available to sellers, and it could even be more comprehensive than what agents can offer,” Lim explained. This shift presents a challenge for agents, who must elevate their roles as professional advisors. “We need to act in good faith for our clients' interests and ensure that selling objectives are met,” Lim emphasized.

To stay relevant in this evolving landscape, Lim advised agents to continuously upgrade their skills and knowledge. “With the right attitude and a wealth of knowledge, we agents will come across as competent and efficient professionals,” he asserted. By doing so, agents can maintain their value in the eyes of clients, who will be more likely to rely on their expertise throughout the property journey.