Kay’s commission was cut to 1.7%.
Kaihui, which is led by Xinhe Real Estate (00083) and partnered with Huazhi (00127) and the Urban Renewal Authority, has been selling at the end of 2018. The agency also has high hopes for real estate. However, the lead developer’s commission rate announced to the agent on December 29, 2018 is only 1.7% of the property price, which is lower than the current practice of the new general commission rate of 2.5% of the property price. The four major agents in Hong Kong, Zhongyuan Real Estate, Lijiage Real Estate, Midland Realty and Hong Kong Real Estate, all expressed strong dissatisfaction and protests. Another agent said that the development of the business is like “finding the monk to the monk.”
Liao Weiqiang: After the completion of the fasting monk
Zhongyuan Real Estate sent a letter to Chairman Huang Zhixiang on the commission of Kaihui on behalf of Chen Yongjie, vice chairman of the Asia-Pacific region and president of the residential department. The letter shows that the commission rate of the company’s sales of Kaihui on the real estate agent is 1.7% of the property price. The brokerage commission paid by the buyers and sellers in the second-hand market is lower than 2% of the property price. It is unreasonable and unfair, and the property is strangled. Acting for a reasonable return and expressing strong dissatisfaction and protest to the developer.
As mentioned in the letter, the Central Plains sales management team has been negotiating with the company for sales planning and commission matters, requesting a commission of at least 2.5% of the property price. It is considered to be in line with market practice. However, it is not only necessary to ask the agent to actively sell the goods, but also the commission rate. There was no positive response. After the completion of the fourth round of sales and the sale of more than 1,300 gangs, the company announced that the commission rate was 1.7% of the property price on the 29th of last month. It is considered to be inconsistent and unfair to the real estate agent. The company is difficult to accept. .
Bu Shaoming, chief executive of Midland Real Estate, said that the company had previously expressed to the developer a strong dissatisfaction with Kaihui’s announcement of a commission rate of 1.7%. Li Zhicheng, the chief executive of Hong Kong Property Management, said that he had already expressed his dissatisfaction with the developers, and the developers responded positively to the incident. Liao Weiqiang, president of Lijiage Real Estate, bluntly said that the developer’s move is like “finding the monk to the monk”, which will undermine the long-standing relationship. All the colleagues in the bank are strongly dissatisfied and consider writing to the developer.
Broker rebate buyer disguised “downside”
According to market sources, some agents promised to provide Kaifu buyers with a 2% rebate on property prices, which means that the agents involved in the transaction should be “disappeared”.
For the event that the commission for Kaihui was too low, the letter did not have any response yesterday. The press conference scheduled to be held today was also cancelled. It is understood that since the implementation of the First-hand Residential Property Sales Ordinance (hereinafter referred to as the first-hand new case) at the end of April 2013, the new commission rate given by the developer to the agent is generally 2.5% of the property price, which has become an unwritten rule in the industry. Although there are individual new commissions below 2.5%, it is only a certain type of interval unit, and the commission rate is less than 2%, which is the first time after a new case. In the first and second phases of Kaihui, the cumulative cash flow has exceeded $16.8 billion. If the commission rate is 2.5%, the commission is about 420 million yuan. The current commission is 1.7% and the commission is 285.6 million yuan. The difference is 1.344. 100 million yuan.