False Property Listings Reports Decreased After Amendment of Gongin Junggaesa Act

The Region with the Highest Report Processing Rate is Busan

[Asia Economy Reporter Onyu Lim] Since the revision of the Licensed Real Estate Agent Act last year, the number of false real estate listings reported has decreased.

According to the ‘2020 Dabang False Listing Report’ released by the real estate platform Dabang on the 15th, the proportion of false listing reports in the first quarter was somewhat high at 35.24%, but showed a continuous decline with ▲26.59% in the second quarter ▲23.79% in the third quarter ▲14.37% in the fourth quarter.

It is interpreted that in the third quarter, when the revision of the Licensed Real Estate Agent Act was fully implemented, Dabang conducted an intensive self-inspection period from June to August as a preemptive measure, and real estate agents, burdened by fines, refrained from posting false listings, resulting in a significant decrease in false listing reports in the fourth quarter.

The annual report processing rate was found to be 74.6%. The report processing rate refers to the proportion of listings that were judged to have a high possibility of being false among all received reports and were intensively inspected. A higher rate means better report processing. Dabang explained that the overheated real estate market last year led to frequent malicious false reports between companies, which affected the report processing rate.

In fact, repeated malicious false reports between companies occurred frequently in some areas, causing difficulties in report processing and listing verification. Accordingly, Dabang plans to advance the reporting system in the future to induce a reduction in malicious reports.

Looking at the report processing rate by region, Busan had the highest rate at 78.7%, followed by ▲Seoul Gwanak 4 districts (Gwanak, Guro, Geumcheon, Dongjak) at 61.8% ▲Seoul Gangnam 4 districts (Gangnam, Seocho, Songpa, Gangdong) at 59.4% ▲Chungnam Cheonan at 57.8% ▲Daejeon at 55.9%.

Also, when checking the volume of reports by day of the week, there were more reports on weekdays than on weekends, with Thursday accounting for the highest proportion at 16.54% of total reports. This was followed by ▲Wednesday 16% ▲Monday 15.9% ▲Tuesday 15.23% ▲Friday 14.68%. On the other hand, weekend reports on Saturday (12.68%) and Sunday (8.97%) were relatively low. It appears that false listings were discovered during the process of checking listings in advance on weekdays to visit rooms on weekends.

A Dabang Station3 official said, “The continuous decrease in the volume of false listing reports is an indicator showing positive changes not only for Dabang but also for the real estate market, as it coincides with the related law revision and the self-regulatory efforts of real estate agencies.” He added, “We plan to improve the system to create a more stable and efficient reporting system in the future.”

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