IMPACT OF THE INTERNET ON ESTATE AGENTS

Abstract

Despite Singapore's small size, the Republic has more than a dozen portals dedicated to the property market. All of them offer just information about HDB, private and landed property currently; none offers any e-transaction facility for buying or selling properties. This took a change on 5 May 2001 when HDB implement the e-resale system. This system allows buyers and sellers to complete their transaction online without the need of an estate agent. This study thus attempts to examine the effects of the Internet and the e-resale on estate agents. The study makes use of a survey to gain first-hand knowledge of the situation in our local real estate market. The results indicate that while Internet technology is prevalent in other countries like the United States, it is still at an infancy stage in Singapore. As a result, it is early to conclude that the Internet will not replace the estate agents. Meanwhile, traditional medium are still preferred over the Internet when homebuyers are searching for properties although majority indicated interest in future usage. In examining the impact of the e-resale system, it is found that majority of the respondents have not heard of it before, thus indicating the need to increase its publicity. Meanwhile, users of the system were very satisfied with the quality. Instead of seeing the Internet as a threat, estate agents are encouraged to take advantage of it and create for themselves a wider clients base. Ways to stay competitive were examined and suggestions were made.