Neighborhood Real Estate Faces 'Double Trouble' from COVID-19... Infection Risk and Sales Slump

Increasing Sighs of Licensed Real Estate Agents Amid COVID-19 Spread
Face-to-Face Consultations Unavoidable Due to Job Nature... Relying on a Single Mask
Listings Plummet Except for Near-Expiry Lease Contracts... Some Refuse Visits

On the 25th, a citizen wearing a mask is looking at a property listing in front of a real estate agency in Seongdong-gu, Seoul. A notice stating "Consultations are conducted while wearing masks" is posted at the agency.

[Asia Economy Reporter Onyu Lim] "We are wearing masks during consultations to prevent COVID-19 and frequently disinfecting the office."

On the afternoon of the 25th, a real estate agency window in Seongsu-dong, Seongdong-gu, Seoul displayed a notice regarding prevention of the novel coronavirus infection (hereafter COVID-19). The agency’s representative A, who was working while wearing a mask, said, "Because of COVID-19, everyone is on edge ? not only me during consultations but also those going to see houses and those coming to see houses." He added, "Although the peak spring moving season is approaching, transactions have sharply dropped except for lease contracts nearing expiration."

Due to the spread of COVID-19, frontline real estate agencies are facing the dual challenges of exposure risk to infection and declining sales. Because the nature of the business requires face-to-face consultations with various landlords and tenants, the risk of virus exposure is high. Moreover, with the recent increase in the proportion of outside investors, the anxiety among frontline agents is growing. A representative from B Real Estate in Uijeongbu-dong, Uijeongbu-si, Gyeonggi-do, where no COVID-19 cases have been confirmed yet, said, "Since we mainly handle redevelopment apartment complexes, investors from various parts of Seoul and Gyeonggi-do come to inquire every weekend," adding, "We have posted a notice at the door requesting mask-wearing due to concerns."

Another issue is the noticeable decrease in customer visits ahead of the peak spring moving season. Although inquiries for one-room and officetel units around university areas have been steadily maintained since the new semester began in March, inquiries for apartment purchases and sales have inevitably declined sharply. This is because the movement paths of confirmed cases have been fully disclosed, creating an atmosphere of self-restraint from going out. A representative from C Real Estate in Nonhyeon-dong, Gangnam-gu, Seoul said, "There are inquiries for lease contracts with fixed terms, but visits to list or find properties for sale have clearly decreased," adding, "Many customers say they want to extend their lease contracts despite rising rent prices due to COVID-19."

According to the Seoul Real Estate Information Plaza, as of the 26th, the number of apartment sales transactions in Seoul was 2,308, less than half of the 5,457 transactions in the previous month. The number of transactions has significantly decreased due to tightened loan regulations from the December 16 real estate measures combined with the impact of COVID-19. However, since the current real estate transaction reporting period is 30 days from the contract date (previously 60 days before the 21st), this number may increase if unreported contracts are registered.

Even when purchase inquiries come in, showing the house is not easy. A representative from D Real Estate in Dangsan-dong, Yeongdeungpo-gu explained, "Homes with young children either postpone visits or request mask-wearing," adding, "There was a young couple who, instead of visiting, asked for detailed photos to be sent." A representative from the Korea Association of Realtors said, "Due to the COVID-19 situation, meetings and training sessions led by the association have been temporarily postponed," adding, "Although a contraction in transactions is inevitable for the time being, there are no appropriate measures at the association level."

This content was produced with the assistance of AI translation services.