ANALYSIS OF LABOR RESOURCES WASTAGE IN CHINA’S REAL ESTATE BROKERAGE: FROM THE PERSPECTIVE OF OPPORTUNITY COSTS

Abstract

In China, real estate broking has seen explosive expansion in the last 20 years, leading to a dramatic surge in
the number of people employed in the industry. Specifically, the increase in the number of workers surpasses the rise in
the amount of real estate transactions in megacities such as Beijing. The resources of human labour can be wasted as a 
result of this. The purpose of this study is to suggest an OES for real estate brokerages in China based on opportunity
costs, which take into account under-size and over-size expenses. The suggested OES models show how a realty broking 
business might minimise projected opportunity costs when deciding on the ideal staffing levels. Furthermore, the ideal 
number of employees in various situations is determined using an iterative process. The outcome proves that the
company's strong profit margins do in fact attract more workers than are really necessary. Real estate brokerages lose 
valuable human and material resources due to factors such as asymmetric competition, an increase in market players, and 
demand volatility, according to a game-model analysis of many possible outcomes. Using Beijing as an example, we can 
confirm the findings of the theoretical analysis. Lastly, we provide some proposals for cutting down on labour resource 
waste in China's real estate broking.