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Policies turn on the heat for real estate agencies

2010-08-16 10:18

Property sales companies and real estate agencies derive most of their income from commissions, and so their earnings would shrink substantially, Yang added.

Huang Meiqing said she was thinking of changing jobs like her colleagues because her current 1,000 yuan monthly income is an inadequate sum to live on in Beijing.

Yang warned, though, that salespersons or property agents do not have much to offer if they switch to another industry.

She suggested it would be wise for them to improve their abilities, for example in their knowledge of the overall market and improving their understanding of customers' needs.

"They should not just regard themselves as sales people but should try to learn about the upstream sectors of their business and acquire more experience," she added.

According to a recent survey by Zhaopin.com, the leading Chinese online human resource provider, since the government's property policies were put into effect and the volume of houses sold consequently fell, estate agencies across the country have not started curtailing their recruitments of sales staff.

A manager of a property agency surnamed Di said: "Because we have fewer clients and some agents are leaving for other jobs, we have to employ more than before."

Nonetheless, the average number of applications for each vacancy was 26 in March but it decreased to 9.9 in June. Analysts from Zhaopin.com said the decline showed a lack of confidence in employment in the real estate employment sector and that competitiveness had been reduced.

The survey also showed that the property sector ranked third in the list of sectors in greatest demand for talented people in the first half of 2010, coming after sales and marketing.

Commenting on many job seekers' concerns over a possible career in the real estate industry, Yang said it would be not risky for experienced candidates to enter the industry in the current climate, except for certain specific sales positions.

For new graduates who possess relevant qualifications, different companies with projects at different stages would take various attitudes towards newcomers. For example, there is now a great demand, opportunity and career development for those who specialized in architecture.

Career International's report showed that 57 percent of respondents were bullish about the future of the industry and felt satisfied with their career choice.

"Although the real estate industry has been influenced by the external economic environment and government policies and is experiencing some short-term fluctuations, it is still a developing industry with a stable perspective," Yang said.

Related readings:
Policies turn on the heat for real estate agencies More urban Chinese expect house prices to fall
Policies turn on the heat for real estate agencies China housing prices post slower growth in July
Policies turn on the heat for real estate agencies Housing prices 'to fall in Q4'
Policies turn on the heat for real estate agencies Investors cool to property curbs

Annual compensation for people in the real estate and construction industries was the second highest surveyed, at 86,700 yuan. It was behind the financial and insurance industry in which the average pay stood at 97,000 yuan per year, according to a wage report by Zhaopin.com, in which 5,866 large- and medium-sized Chinese enterprises including foreign-funded companies, private as well as State-owned, were surveyed.

The three highest average monthly salary for graduates offers went to those starting in finance and insurance, computer-related fields and real estate or construction, amounting to 3,027 yuan, 2,901 yuan and 2,771 yuan, respectively.

Yang added that the whole industry would maintain stable but some companies would take the chance to optimize their human resources by eliminating staff with bad performance records and hiring new talent.

About 66 percent of employers said they had difficulty recruiting for some key positions, especially the job of general manager, according to the report by Career International.

Yang suggested that companies of all kinds should work out a long-term strategy to maintain reserves of talent at different levels and with different specializations.

"A competitive salary system and training mechanism are also crucial for attracting talent and maintaining excellent human resources," she said.

The report showed that about 67 percent of employees in the real estate industry said they attached most importance to the enterprises' land reserves and the quality of property projects when making their career decision.

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