Property agent commissions are the single largest non-stamp-duty transaction cost in a Singapore home sale, yet they are also the most misunderstood. This 2026 guide walks through how fees are typically structured across HDB resale, private resale and new-launch transactions, who pays whom, when GST applies, what the CEA rulebook actually requires on disclosure, and how you can negotiate fees without sabotaging your own transaction.
Quick Answer — property agent commission in Singapore
- HDB resale: sellers typically pay 2% + GST to their agent; buyers typically pay 1% + GST to theirs. Neither is a fixed rule.
- Private resale: sellers typically pay 1-2% + GST; buyers almost never pay because new-launch and project co-broke fees already flow.
- New launch: buyers pay no commission. The developer pays the salesperson directly via a marketing fee (typically 3-5% of price).
- Rental: the landlord typically pays 0.5 months’ rent for a 1-year lease or 1 month for a 2-year lease. Tenants pay their own agent only if they appoint one and agree to do so in writing.
- GST: charged at 9% (from 1 January 2024) where the agency is GST-registered.
- CEA-registered: every salesperson must hold a live registration number; dual-representation is prohibited without prior written consent from both sides.
Why commissions are not fixed by law
The Estate Agents Act 2010 and the Council for Estate Agencies’ (CEA) subsidiary rules do not prescribe commission rates. Commission is a commercial matter between a client and an estate agent, and the CEA Code of Practice for Estate Agents requires only that the agreed commission (and any variation) be disclosed in writing, and that the salesperson must not charge commission to both sides of a transaction without the prior written consent of both clients.
What the market does have, however, is a convention. These conventions are sticky because they are enforced by the agencies’ internal co-broke rules and by the developer-marketing fee structure on new launches. Understanding those two levers makes commission economics click.
HDB resale commission
On an HDB resale, each side typically appoints its own agent. The conventional rate is:
| Side | Typical commission (ex GST) | Notes |
|---|---|---|
| Seller | 2% of selling price | Negotiable; for higher-priced flats (S$1m+) some sellers negotiate to 1.5%. |
| Buyer | 1% of purchase price | Unusually, HDB buyers routinely engage their own agent. Fee is always disclosed in the Customer’s Agreement. |
GST at 9% (from 1 Jan 2024) is charged on top if the agency is GST-registered. For a S$700,000 resale flat, the seller’s 2% fee is S$14,000 + S$1,260 GST = S$15,260. The buyer’s 1% fee on the same flat is S$7,000 + S$630 GST = S$7,630. These fees are invoiced on completion (the “resale completion appointment” at HDB) and settled through the conveyancing solicitor’s completion statement.
Private resale commission
On a private resale (condo, strata landed or landed title-deed), the convention differs because of the co-broke mechanic. The seller signs an Exclusive Estate Agency Agreement (a “listing”) with a listing agent, and that listing agent advertises the unit and shares a portion of commission with any “buyer’s co-broke agent” who brings the eventual buyer. The buyer does not typically pay their own agent directly on a private resale.
| Scenario | Seller pays (ex GST) | How it splits |
|---|---|---|
| Single-party (listing agent also sources buyer) | 1% of price | Whole fee to the listing agent. Dual-representation disclosure required. |
| Co-broke (buyer brings another agent) | 2% of price | Typical split 1% to listing + 1% to buyer’s co-broke agent. Some markets use 1.5% / 0.5%. |
| Luxury / GCB (price S$10m+) | 0.5-1% of price | Rate drops as absolute quantum rises; fixed-fee engagements common above S$15m. |
Because the co-broke fee is paid by the seller, buyers of private resale properties should not typically be asked to pay a commission. If a salesperson tells you otherwise, ask for the signed buyer’s Customer’s Agreement and verify it against the CEA Code of Practice before signing anything.
New-launch commission
For developer sales (a condominium new launch with direct sale from the developer), the buyer pays no commission at all. Instead, the developer appoints one or more agencies as project marketing partners and pays them a marketing fee, which is then distributed internally to the salespersons who bring the successful buyers.
| Marketing-fee tier | Typical range (% of price) | Who pays |
|---|---|---|
| CCR new launch (Orchard, Tanglin, Newton) | 3-5% | Developer |
| RCR & OCR new launch | 2-4% | Developer |
| Executive Condo (EC) launches | 1.5-3% | Developer |
The practical implication: if you are purchasing a new launch, the marketing fee is already baked into the developer’s pricing regardless of whether you walked into the show-flat alone or through an introducer. Buyers who worry about “paying” the agent directly are usually worrying about a fee that the developer is already paying on their behalf.
Rental commission
Rental brokerage fees are lower than sales commissions and are split between landlord and tenant differently depending on lease length.
| Lease tenure | Landlord’s agent fee | Tenant’s agent fee |
|---|---|---|
| 1-year lease | 0.5 months’ rent (landlord pays) | Usually nil unless rent is below S$3,500 / month (then 0.5 months) |
| 2-year lease | 1 month’s rent (landlord pays) | Usually nil |
| 3-year lease (rare) | 1 month (some split with tenant’s agent) | Negotiable |
For low-rent transactions (typically a room rental or HDB room below S$3,500), it is common for the tenant to pay their own agent a 0.5-month fee to ensure the salesperson is paid for the work. Every rental engagement should be documented in a Customer’s Agreement specifying who pays what.
Worked example — two scenarios side by side
Scenario A: HDB resale at S$700,000
- Seller’s commission at 2% = S$14,000 + 9% GST = S$15,260.
- Buyer’s commission at 1% = S$7,000 + 9% GST = S$7,630.
- Combined total = S$22,890 (around 3.27% of the transaction price).
Scenario B: Private resale condo at S$2,500,000
- Seller pays listing agent 2% via co-broke = S$50,000 + GST S$4,500 = S$54,500.
- Internal split: S$25,000 to listing agent and S$25,000 to buyer’s co-broke agent.
- Buyer pays nothing directly.
- Combined total = S$54,500 (2.18% of the transaction price).
GST treatment
GST is charged on estate-agency commission at the prevailing rate where the appointed estate agent is a GST-registered business. Since 1 January 2024 the rate has been 9%. Some salespersons operate through smaller brokerages that are not GST-registered, in which case no GST is charged. Always check the invoice: “GST No. M9xxxxxxxxx” must be shown on the agency’s tax invoice if GST is charged.
Dual representation — when one salesperson acts for both sides
The CEA’s position under the Practice Guidelines on Dual Representation is clear: a salesperson or estate agent cannot represent both the seller and the buyer (or the landlord and the tenant) in the same transaction without the prior written consent of both parties and full disclosure of the conflict. Even with consent, the agent cannot charge commission to both sides unless both sides have consented to that too.
If a salesperson offers to “take care of both sides” on a transaction, ask for written disclosure and ask for the Customer’s Agreement explicitly to record dual representation. Failure to disclose is a disciplinary matter and can result in CEA sanction.
How to negotiate commission without losing service
- Benchmark first, negotiate second. Ask three agents for quoted rates before engaging; the conversation is easier when you have market data.
- Use scope to justify a reduced rate. If you are happy with a smaller marketing package (e.g. no drone video, no VR tour), a listing agent may accept 1.5% instead of 2%.
- Watch the co-broke split, not just the headline. A 1% “all-in” fee that keeps the listing agent with no co-broke split reduces your buyer pool. A 2% fee with a 1/1 co-broke split typically sells faster. On a S$2m condo, a 1% faster sale often beats a 0.5% fee negotiation.
- Rebate structures. The CEA permits salespersons to rebate part of their commission to the client, provided the rebate is disclosed in writing and paid out of the agent’s own entitlement. Rebates are commercial; do not push a salesperson below their agency’s floor rate because the salesperson still has to pay their own desk fees.
- Tiered rates. For sellers with an ambitious ask, a “2% if sold at or above asking, 1.5% if discounted” structure aligns incentives.
Verify the salesperson
Every practising salesperson in Singapore must be CEA-registered. Check the registration number at the CEA Public Register (cea.gov.sg) before signing any Customer’s Agreement. The public register shows: registration status, agency, registration period, disciplinary history. Salespersons operating without an active registration are committing an offence under the Estate Agents Act 2010.
Key takeaway. Singapore commission norms are commercial conventions, not statutory rates. Sellers pay on HDB resale (2% conventional) and on private resale (1-2% with co-broke), buyers pay on HDB resale (1% conventional) and rarely elsewhere, and new-launch buyers pay nothing directly — the developer’s marketing fee funds the salesperson. GST at 9% is added where the agency is GST-registered. Always insist on a written Customer’s Agreement, verify the CEA registration number, and do not accept dual representation without written consent from both sides.
Frequently asked questions
Who pays the commission when I buy a new launch?
The developer pays. You do not pay an agent commission for a direct purchase from the developer at a new-launch show-flat. The marketing fee (typically 3-5%) is paid by the developer to the appointed marketing agency.
Can my agent charge me 1% on a private resale?
Possibly — but only if you signed a Customer’s Agreement expressly engaging them as your buying agent. In the standard co-broke model on a private resale, the seller pays both sides. Read the agreement before signing.
Is 9% GST compulsory on all commission?
GST at 9% applies if the estate agency is GST-registered under the GST Act. Small agencies below the S$1m turnover threshold may not be GST-registered, in which case no GST is charged. The agency’s GST number must be shown on any tax invoice.
Is commission payable if the transaction fails?
Usually no — commission is a success fee conditional on the transaction completing. However, many listing agreements include a “marketing budget” clause (fixed upfront costs for photography, VR tours, paid ads) that is payable regardless. Read the agreement.
Can the salesperson give me a rebate?
Yes. The CEA Code of Practice permits a salesperson to rebate part of their commission to the client provided the rebate is disclosed in writing and funded from the salesperson’s own entitlement (not the agency’s).
What is dual representation?
Dual representation is when a single salesperson or estate agent acts for both sides of a transaction. It is permitted only with prior written consent from both parties and with commission disclosure to both. Undisclosed dual representation is a disciplinary matter.
Are HDB resale commissions negotiable?
Yes. 2% seller / 1% buyer is a convention, not a rule. On higher-quantum flats (S$1m+ million-dollar flats) a seller may negotiate to 1.5%. The CEA imposes no floor or ceiling on rates.
What happens if I engage two agents at the same time?
A seller who signs more than one Exclusive Estate Agency Agreement at the same time could be liable for double commission if both agents produce a successful buyer. Use a Non-Exclusive Listing if you want to engage multiple agents — but note that non-exclusive listings typically attract less marketing effort per agent.
How is GST calculated on the commission?
GST is calculated on the commission amount (not on the property price). On a 2% fee on a S$2m flat, the commission is S$40,000 and GST (9%) is S$3,600, for a total of S$43,600 payable.
Do I pay commission if I buy directly from a seller without an agent?
No commission is payable to any agent you have not engaged. If the seller engaged a listing agent, that agent’s fee is a matter between the seller and the listing agent and does not affect you as buyer.
Can I claim commission as a tax deduction?
For a residential property sale in Singapore, commission paid to the seller’s agent is not a tax-deductible expense for a private individual, as residential capital gains are not taxable. For investment rental property, letting fees are deductible against rental income under IRAS’s simplified or itemised deduction method. See IRAS e-Tax Guide on rental-income tax treatment.
What records should I keep?
Customer’s Agreement (signed original), tax invoice (with GST breakdown if applicable), proof of payment (bank transfer or cheque), and the completion statement from your conveyancing solicitor. Keep these for at least seven years for any future IRAS or dispute purposes.
Related reading
- ABSD Singapore Complete Guide 2026
- Singapore Property Valuation 2026: How Banks Decide Your Home’s Worth
- First-Time Landlord Checklist: Renting Out Your Condo in Singapore 2026
- Singapore Rental Yield Guide 2026
- Singapore Landed Property Guide 2026
- 21 Anderson: Ultra-Rare 19-Unit Freehold Boutique in District 10 Tanglin
Authority references
- Council for Estate Agencies (CEA) — Code of Practice for Estate Agents & Public Register.
- Estate Agents Act 2010 (Revised 2020) — Singapore Statutes Online.
- Inland Revenue Authority of Singapore (IRAS) — GST General Guide for Businesses; Income Tax e-Tax Guide on rental income.
- Housing & Development Board (HDB) — Resale Portal (Customer’s Agreement, resale completion process).
- Monetary Authority of Singapore (MAS) — Notice 645 on Total Debt Servicing Ratio (relevant because commission affects the cash portion of transaction costs).
Disclaimer: The commission ranges and conventions described in this guide reflect prevailing market norms as at the date of publication and are not legal, tax or financial advice. Commission in Singapore is a commercial matter between client and estate agent; no statutory rate applies. Always sign a written Customer’s Agreement setting out scope, fee and GST treatment, and verify your salesperson’s CEA registration number before engagement. Tax treatment depends on each taxpayer’s circumstances; consult IRAS or a qualified tax adviser for your specific case.
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