GA technologies Co., Ltd. GA technologies Co., Ltd. (Headquarters: Minato-ku, Tokyo; Representative Director, Executive Officer and CEO: Higuchi Ryu; Stock Code: 3491; hereinafter referred to as "the ITANDI, Inc.") that uses technology to facilitate real estate transactions, conducted a survey on "enclosure" targeting real estate sales agents in response to the revision of the Enforcement Regulations of the Real Estate Transaction Business Act by the Ministry of Land, Infrastructure, Transport and Tourism in January 2025, which made "enclosure" in real estate transactions subject to disciplinary action (※1).

"Enclosure" refers to the practice by some real estate agents who, for the purpose of their own profit, intentionally conceal the transaction status of a property and refuse to introduce the property against the seller's wishes, with the aim of acting as an intermediary between the seller and the buyer.
As a result, the interests of sellers and buyers may be harmed and transparency in real estate transactions may be compromised.
Starting in January 2025, the Ministry of Land, Infrastructure, Transport and Tourism will implement amendments to the Enforcement Regulations of the Real Estate Transaction Business Act, making "enclosure" in real estate transactions subject to disciplinary action (※1).
Against this backdrop, Itanji will announce a survey on "enclosure" conducted among 205 real estate sales agents who responded that they "know" about the term.

Of those who answered that they "know" about the problem of "cornering" in the real estate industry, 57.6% answered that they "have experienced," "felt that they have experienced," or "saw or heard about" cornering. This indicates that cornering is widespread within the industry and may be negatively impacting the transaction experiences of the parties involved and the reputation of the real estate industry as a whole.
When asked how they realized they were being "locked in," respondents said things like, "I inquired through the real estate agent and was turned down, but then I asked the customer to inquire directly and they were introduced to a property," and "I checked to see if the property was available and was turned down because it was already booked, but later heard from the customer that it looked like we would be able to purchase the property we inquired about."

When asked what they did afterward among those who answered that they had been subjected to, felt that they had been subjected to, or had seen or heard about it being subjected to, 66.1% answered that they had done nothing in particular. This is thought to be because, up until now, "enclosure" was not subject to disciplinary action, so even if it was reported, it did not lead to a solution, or because it has been a long-standing custom, it is difficult to see "enclosure" as a problem.

In response to the question, "Do you think that cornering is an issue in the real estate industry?", 77.1% answered "Yes." This was higher than the 57.6% who answered that they had experienced cornering, indicating that even among those who have not actually experienced it, awareness of it as an industry-wide issue is widespread.

Regarding the recent legal reform, 78.1% of respondents said they "very much approve" or "slightly approve," far exceeding the 15.1% who said they "do not approve very much" or "do not approve at all."
Reasons for "highly rated" or "somewhat rated" included "it guarantees fair and impartial property information for real estate agents, and prevents loss of opportunity for clients who enter into agency contracts," and "it leads to a more healthy real estate industry and promotes sales." On the other hand, there were also voices that did not rate it for reasons such as "there are plenty of loopholes."

Finally, when asked whether they thought the recent legal reforms would lead to more invigorated trading, 52.2% answered "I think so" or "I somewhat think so," while 45.9% answered "I don't think so much" or "I don't think so."
Compared to the positive reactions to the recent legal reforms, there are not many expectations for an increase in trading activity. This suggests that there is still room for improvement in the transparency of trading, and that new efforts are needed to improve the situation beyond the legal reforms.

This survey revealed that the "enclosure" problem in the real estate industry is familiar to many real estate brokers and is widely recognized as an issue in the industry. It also revealed that the recent legal reforms are seen as an important step towards the sound business operations of the real estate industry.
The problem of "enclosure" is largely caused by the asymmetry of information in the real estate industry and the lack of transparency in transactions. Itanji's mission is to "make real estate transactions smoother with technology," and we will continue to contribute to improving the transparency of real estate transactions and work hard to build a real estate infrastructure that allows everyone to trade with confidence.

・Period: Friday, December 20th, 2024 to Saturday, December 21st, 2024
Target: Real estate brokers who answered that they "know" about "enclosure"
・Number of valid responses: 205
Survey method: Online survey using the self-administered survey service Freeasy