FOURTEEN property agencies are vying for the right to sell 250 of the Housing Board's surplus flats on the open market.
In a recent tender, they have offered to charge commissions of no more than 2 per cent of the selling price of each flat, with none resorting to the cut-throat bids seen in an earlier exercise.
The 250 flats, part of HDB's surplus batch of about 6,000 units, are located mainly in Sengkang and Jurong West. They have remained unsold for five years or more.
When the flats are put on the open market, they will be available to singles and permanent residents, who cannot buy new and subsidised flats directly from the Government.
Last year, after selling a pilot batch of 100 surplus flats, the HDB called for a tender to hire agents to sell another 400 units on the resale market.
The 100 five-room and executive flats in Jurong West, Bukit Panjang and Sengkang were priced at between $194,000 and $346,000. Fifteen agencies responded to the tender, with some offering to charge the HDB nothing, or to even pay the HDB. This raised concern that the agencies would pass their costs onto buyers.
The HDB eventually scrapped the tender and called for another last month, this time banning appointed agents from charging buyers commissions.
In fact the agencies can be fined $3,000 for each occasion that they try to do so, or if they refuse to entertain any buyer or his housing agent.
Despite these conditions, the 14 agencies that responded by the latest tender deadline on Wednesday put in competitive bids, ranging from $476 per sale to 2 per cent of the sale price.
Currently, most agents charge a 2 per cent commission to sell an HDB flat.
One of the agencies, Advance Link Properties, was recorded as having put in a bid of minus 1 per cent as commission, but later clarified that it had made a mistake.
One of its directors, Mr Eric Toh, told The Straits Times yesterday that it had in fact meant to bid 1 per cent. The company had informed the HDB about its error, he said.
ERA Realty Network, which offered to charge minus 0.01 per cent for some flats in the last tender exercise, submitted a bid of between 1 per cent and 1.5 per cent this time round.
One company, Elix Realty, offered to charge just $476 per sale for the flats in Jurong West. When contacted, its director Steve Teo said it was able to offer this rate because it has a ready market for flats there.
HDB is expected to award the tender soon.
tanhy@sph.com.sg
