Real es­tate de­vel­op­ers de­lay pay­ing com­mis­sions

China Daily (Canada) - - NEWSCAPSULE -

Property de­vel­op­ers deal­ing with a deep­en­ing slump in China’s hous­ing mar­ket are de­lay­ing huge fees owed to real es­tate bro­kers.

Li Yaozhi, gen­eral man­ager for South China with Centaline Property Agency Ltd, one of the big­gest bro­ker­ages in China, told re­porters last week in Shen­zhen that de­vel­op­ers owe Centaline more than HK$3 bil­lion ($387mil­lion) in com­mis­sions.

A sales di­rec­tor with one of the big­gest real es­tate agencies in Shang­hai, who de­clined to be iden­ti­fied due to cor­po­rate pol­icy, told China Daily that nearly all bro­ker­ages in the city have com­mis­sions due from de­vel­op­ers, with the pro­por­tion in some cases reach­ing up to 70 per­cent.

Of­fi­cial data pub­lished on Wed­nes­day showed that China’s aver­age home prices fell for the first time in two years in May. The Na­tional Bureau of Sta­tis­tics said that home prices dropped 0.2 per­cent in May from April. (Photo 5)

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