The number of real-estate offices in the nation last quarter climbed to a record high, although housing transactions slowed down and might weaken amid growing economic uncertainty, government data suggested.
The number of real-estate offices bottomed out in 2017 with 6,326 establishments employing 43,542 brokers and agents, Ministry of the Interior data showed.
By the end of last month, the number of real-estate offices had soared to 8,330, employing 69,331 brokers and agents, as companies expanded outlets and payroll to capitalize on a property boom, despite the COVID-19 pandemic, the ministry said.
Taichung reported the highest number of real-estate offices with 1,608, while New Taipei City and Taoyun each had more than 1,000 such offices, the ministry said, adding that 850 real-estate offices were operating Kaohsiung.
The record-high figures suggest cutthroat competition moving forward, as the market is rapidly losing momentum, Yes Home Services Corp (元宏不動產) founder Chou Kun-li (周昆立) said.
Chou attributed the slowdown in housing transactions to unfavorable policy measures, such as interest rate hikes, selective credit controls and punitive property tax terms, at home as well as growing recession fears and geopolitical conflicts abroad.
“Brokers could soon see several months without a single deal. Prospective buyers should boldly ask for price concessions,” Chou said.
Housing transactions this year could put an end to five straight years of gains, given the trend during the first nine months, he said.
The pessimistic sentiment has been growing, while sellers have so far refused to concede, Chou said.
The market would soon experience a mismatch between supply and demand, he said.
Chou advised prospective buyers to spend more time house hunting and take advantage of cash-strained sellers.
“Buying on price corrections is the best defense against losses and the biggest assurance for future gains,” he said.
Toward that end, buyers should look for properties in popular locations, he added.
During bad times, real-estate brokers and agents should cut operating costs, and improve their professional know-how and services to facilitate transactions, Chou said.
Prospective buyers and brokers can use land transcripts that list debt and rights data to find cash-strained sellers, Chou said.
Real-estate agents could seek potential customers by searching disclosed inheritance information and non-local landowners, Chou said, adding that paying attention to transactions in popular rezoning areas could also prove helpful.
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