Raising the Bar for Singapore's Real Estate Industry: Why the New CEA Transaction Requirement Is a Positive Move

The real estate industry has always been one of the easiest professions to enter, but one of the hardest to succeed in.

Every year, thousands of people obtain their Real Estate Salesperson (RES) licence with dreams of building a successful career. Some go on to become full-time professionals, while others keep their licence "just in case" or only help friends and family occasionally.

That is about to change.

From 2027, the Council for Estate Agencies (CEA) will introduce a new competency requirement for licence renewal. Real estate salespersons will need to complete at least three property transactions within each three-year registration period, or alternatively pass a refresher examination to remain eligible for renewal. At the same time, the validity period of RES registrations and estate agency licences will be extended from one year to three years.

Some agents are understandably concerned.

Others welcome the move.

Personally, I think this is one of the most meaningful changes CEA has introduced in recent years.

Not because it reduces the number of agents.

But because it raises the professionalism of the entire industry.

Being Licensed Doesn't Always Mean Being Current

Buying or selling a property is often one of the largest financial decisions a family will ever make.

Clients expect their agent to understand:

• Current regulations.

• Financing rules.

• CPF policies.

• Stamp duties.

• Market trends.

• Negotiation strategies.

• Contractual obligations.

These are not static.

Housing policies evolve regularly.

Cooling measures change.

Loan regulations are updated.

Grant schemes are revised.

New project launches constantly reshape market benchmarks.

An agent who has not handled a transaction for several years may still hold a valid licence, but may not have recent practical experience navigating today's market.

That creates risk for consumers.

The new requirement helps address this.

Three Transactions in Three Years Is Actually Reasonable

Some people have described the new rule as demanding.

I don't see it that way.

Three transactions over three years averages one transaction a year.

For someone who wishes to remain an active practising professional, I don't think that is an unreasonable expectation.

More importantly, CEA has also recognised that there are different career paths.

Agents who do not meet the transaction requirement can still remain registered by passing a refresher examination, ensuring their knowledge remains current.

That strikes a sensible balance.

The objective is not to force unnecessary transactions.

The objective is to ensure competence.

What Does This Mean for Consumers?

I believe consumers stand to benefit the most.

One of the biggest criticisms our industry has faced over the years is inconsistency.

Some agents are highly experienced professionals.

Others may only handle a transaction once every few years.

From a consumer's perspective, it is difficult to tell the difference.

This new framework gives buyers and sellers greater confidence that their agent is either:

• Actively practising, or

• Keeping up to date through formal assessment.

That is good for trust.

And trust is the foundation of our profession.

What Does This Mean for Individual Agents?

For full-time agents, I don't think this changes very much.

If you're consistently serving clients, three transactions over three years is unlikely to be a challenge.

In fact, it may work in your favour.

As the profession becomes more competency-driven, experienced agents who continuously invest in learning and client service may find themselves competing in a stronger and more respected industry.

For newer agents, I actually see this as an opportunity.

The focus should no longer be on simply getting licensed.

The focus should be on building a sustainable business, developing expertise and remaining active in the market.

What Does This Mean for Agencies?

I believe agencies will also need to evolve.

For many years, success was often measured by the number of registered salespersons.

Going forward, I think agencies will increasingly be measured by something more meaningful:

How many competent, productive and well-trained agents are they developing?

This places greater emphasis on:

• Structured training.

• Coaching.

• Mentorship.

• Lead generation.

• Practical skills.

• Ongoing professional development.

Agencies that invest in helping agents build long-term careers are likely to benefit the most.

This Isn't About Reducing Agent Numbers

Some people see this as an attempt to reduce the number of agents in Singapore.

I don't think that's the primary objective.

I think the real objective is to raise professional standards.

Our profession carries significant responsibility.

We advise families on million-dollar decisions.

We negotiate complex transactions.

We interpret regulations.

We protect our clients' interests.

Those responsibilities deserve a profession that continuously improves itself.

Experience Still Matters

As someone who has been in this industry for over two decades, one thing has become increasingly clear to me.

Experience isn't measured simply by the number of years you've held a licence.

It's measured by the number of families you've helped.

Every transaction teaches something.

Every negotiation sharpens judgement.

Every market cycle builds perspective.

Every policy change improves understanding.

That accumulated experience is what clients ultimately benefit from.

The new CEA framework encourages agents to continue building that experience rather than simply maintaining a licence.

My Thoughts

I welcome this change.

Not because I believe every agent should be chasing transactions.

But because I believe every consumer deserves an agent who is current, competent and committed to the profession.

Three transactions over three years is not an aggressive target.

It is a reasonable expectation for someone who wishes to remain an active real estate professional.

For agencies, it encourages better training.

For agents, it promotes continuous engagement with the market.

For consumers, it increases confidence in the advice they receive.

Most importantly, it reinforces something I've believed throughout my career.

Being a good real estate agent isn't about holding a licence.

It's about continuously learning, continuously serving and continuously earning the trust of the families who place one of their biggest financial decisions in your hands.

If this change helps raise the overall professionalism of our industry, then I believe it is a step in the right direction.