Real estate developers delay paying commissions
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)