Real estate brokers seek survival in self “remakes” as luxury tax looms

Some of them have said that about one tenth of existing brokerage firms and franchise operators may close down for good and businesses may shed about 10,000 jobs as soon as the proposed measure is enacted.

Drawing an analogy between the structure of a barrel and the makeup of real estate business, Li Tong-rong (李同榮), CEO of Taiwan Real Estate Transaction Center, yesterday called for reinvention efforts by real estate brokers.

“A barrel would not hold water if any one of its many planks is missing. Similarly, human resources, marketing, customer protection, management, finances, service quality, quality managers, and a strong business culture should all be present” to prop up their business, Li explained, saying the time is ripe for business “reinventions” in order for brokerage firms to survive.

Another broker thinks the time is ripe for rethinking their market share, suggesting that brokers should consider introducing other services, such as rental services and estate management services.

Liu Ming-che (劉明哲) vice president of Hbhousing, who sees “an opportunity in every calamity,” tries to seek solace in the Darwinian principle of “survival of the fittest,” saying the survivors of the luxury tax's impact will be more competitive.

However, in order to survive, brokers must try to think positively and clinch more transactions on the basis of sound management, he said, adding they should also try to expand their customer base and improve their services.

In the face of an overheated housing market, the government has proposed a luxury tax to be levied on short-term speculation.

Real estate businesses have blamed the proposed measure for their dwindling business.

The shockwaves brought on by the proposed luxury tax in March were even worse than those generated by the recent international turmoil, with the effects being most pronounced in northern Taiwan where properties were overpriced, said Su Chi-jong (蘇啟榮), a researcher with Sinyi Realty Inc.

Statistics compiled by Sinyi Realty Inc. show that last month real estate transactions in Taipei were down 18 percent from January, and more than 30 percent in New Taipei City, the country's hardest hit city.

In the same month, prices of residential properties in Taipei City and New Taipei City were 3.2 percent and 2.3 percent lower, respectively, than in February.

Of the country's 5,000 real estate brokerage firms and franchise operators, about 500 may not be able the survive the impact of the luxury tax, Wang Ying-chieh (王應傑), board director of the Chinese Association of Brokers, said yesterday, adding an estimated 10,000 employees may lose their jobs.

Subscribe to The China Post and save 25%. Click here

PrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email