Looking for a way out through a ‘Shop in the Shop’ operation… A variety of industries
There is also a ‘sale’ which distributes leaflets… “Eat and live”
“It’s true that it’s difficult because there are so few transactions. Some real estate brokers say they bake taiyaki and sell coffee in real estate brokerages. It’s so hard, isn’t it trying to make a living like only this?” (Representative of a real estate broker in Magok-dong, Gangseo-gu)
Real estate brokers are having a tough day. This is because the ‘cold trading wave’ that started in the second half of last year shows no signs of ending. There are even places that operate ‘Siop yn y Siop’ (Shop in the Shop) that bake taiyaki and sell coffee in real estate agencies.
According to the Seoul Real Estate Information Plaza on the 22nd, a total of 11,805 apartment transactions were made in Seoul last year. By month, △1090 cases in January △816 cases in February △1423 cases in March △1745 cases in April △1727 cases in May △1060 cases in June △637 cases in July △669 cases in August △605 cases in August △605 cases in September 558 cases in the month △731 cases in November △744 cases in December.
The number of transactions last year was cut by more than a third compared to the previous year, 2021. In 2021, the number of apartments sold in Seoul was 41,949. Compared to 81,142 cases in 2020, it shrank 8 times. That is why there is said to be a ‘transaction cliff’ rather than a ‘transaction cliff’.
The reason why transactions dried up last year is that housing prices, which rose as fears of an economic recession grew, fell rapidly, and interest rates soared to recover money released due to the new coronavirus infection (Corona 19 ).
Estate brokers are scrambling to make ends meet as the going gets tough due to the ‘transaction cliff’. Recently, more and more people are making a living by opening another shop within a brokerage business, a so-called ‘shop-within-a-shop’. The industry is also diverse. There are unmanned ice cream shops, lottery shops, cafes, flower shops, and even taiyaki.
A representative of a certified real estate brokerage in Seoul explained, “Agents who cannot afford to work two jobs make a living by opening other shops in a ‘shop-within-a-shop’ style.”
There are brokers who are looking for a way out as a ‘second job’, but there are also cases where they are more loyal to their ‘main job’. It is based on the judgment that the time for customers to come alone has passed.
An authorized brokerage in Gaepo-dong, Gangnam-gu said, “There are cases where we make flyers that include sales, rentals and monthly rentals, and distribute them around Gangnam, hoping that even one customer comes.” I came here, but now is not the time to cover hot or cold food. Shouldn’t we make a living by trading at once?”
They let go of the workers they have hired or even close. A certified brokerage representative from Apgujeong-dong said, “Many agencies have a structure where commissions are taken according to performance rather than a monthly salary system.” There are cases where (workers) can’t stand it and leave.” At the same time, he suggested, “If it is difficult to maintain, the door is opened intermittently or closed completely.”
The reason why estate agents started selling their products with ‘Shop in Shop’ is that they were in a situation where they could not pay the monthly rent of the estate agent immediately. A representative of an authorized real estate agency in Incheon said, “It is true that brokers who have been in the brokerage business for a long time in the region may suffer even in these difficult times, but it is true that brokers who have joined with the company. the real estate market can’t even earn lunch money, let alone the rent they have to pay immediately.”Shouldn’t you be doing something?”
Meanwhile, according to the Korea Real Estate Agents Association, as of November last year, the number of real estate agents closed nationwide was 1,103. On the other hand, 853 brokerages were newly opened. There have been 106 closures, but the number of closings and closings is greater than the number of openings.
Until July last year, there were more openings than closings, but from August the number of licensed brokerages that closed began to increase, widening the gap between opening and closing to 250 in November.
Lee Sang-ryeol, Hankyung.com reporter yisr0203@hankyung.com
