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In real estate-centric Singapore, where owning one or more homes is a common aspiration, you likely know a few property agents within your social circle. Some individuals may have embarked on their real estate careers straight out of school, while others might have made a mid-career switch to the industry. Being a property agent is no easy task. As self-employed professionals, they don’t earn a fixed salary and instead rely on closing deals to receive commission income. Moreover, they bear the burden of all work-related expenses, including marketing costs, subscription services, and transportation. Unlike salaried employees, property agents also do not benefit from employer CPF contributions. Despite these challenges, the real estate industry attracts many to work as property agents. According to the Council for Estate Agencies (CEA), there were 35,251 property agents as of 1 January 2024. Given that Singapore’s resident workforce is approximately 2.43 million, this means about 1 in 69 working adults is a property agent. One major draw to the industry is the potential for high income. As a property agent, your earnings are uncapped. If you close many deals or manage to close high-value transactions, your earnings can be substantial. The allure of potentially high earnings, the dynamic nature of the job, and flexible working hours make the real estate industry an appealing career choice for many in Singapore. Consequently, it’s common to see friends sharing their achievements on social media, showcasing their success. This visibility is also crucial, as success tends to attract more success. But how much do your property agent friends make each month, even if they achieve property awards that they are proudly sharing? Unlike insurance agents with a global association like the to strive towards, property agents in Singapore typically celebrate local awards given by their respective agencies. Though each agency calls these awards differently, they are generally similar in terms of their tiers based on the commission earned. According to information from , which we have verified with industry sources, the award tiers are as follows: While the award names vary by agency, the tiers generally align with the abovementioned commission amounts. For instance, an ERA property agent who achieves the “Star Achiever” (Tier 6) would have generated between $10,000 and $49,999 in monthly commission. Similarly, a PropNex agent who attains “Super Platinum” (Tier 3) would have earned between $250,000 and $499,999 in commission for the month. These recognition programs not only celebrate the success of top-performing agents but also provide motivation and benchmarks for others in the industry to aspire to. Before you start celebrating with your property agent friend and expect them to foot the entire restaurant bill for the next army/class gathering, it’s important to understand that the commission a property agent makes is not their actual take-home income. The figures you see on social media are usually gross commissions, not net earnings. When you engage a property agent, the commission you pay is the gross commission. For instance, if your agent sells your HDB flat for $500,000 at a 2% commission, you would pay $10,000. This amount qualifies the agent for the month’s award (Tier 6: $10,000 – $49,999). However, the agent’s actual earnings from this transaction will be lower. Property agents must pay a portion of their commission to the agency they represent (e.g., PropNex, ERA, Huttons). This fee varies based on sales volume and years of experience, but a common estimate is around 20%. Thus, from a $10,000 gross commission, the agent may net about $8,000 after agency fees. As self-employed individuals, agents incur various business expenses, including advertising costs, transportation, and possibly office space rental. While these expenses can scale with increased earnings, we take a ballpark estimate of  10% of commission fees. Therefore, for a $10,000 gross commission, an agent may incur costs of around $1,000 on business-related expenses. For a $10,000 gross commission, an agent’s actual earnings could be approximately $7,000 after deducting agency fees and business expenses. Under the  . In other words, if you earn $50,000 in commission for the year, IRAS presumes that 25% of the amount ($12,500) is business expenses. Here’s a simplistic way to think about how much a property agent earns from a monthly gross commission of $10,000. Lastly, it’s worth remembering that while property agents’ take-home earnings might look high, they do not receive any bonuses, employer’s CPF contribution or medical benefits.