Realtor Price War in Beijing

Although the market is heating up, realtors are engaged in a price war that looks set to escalate.

Sales commissions are down from 2.7% to 1.5%, and rental commissions have been halved. Since prices have risen in recent years, the effect isn't crushing for firms, but it also means growth relies on rising sales as long as prices stagnate.

iFeng: 北京二手房佣金2.7%被打破 价格战一触即发
Industry price war imminent

It is understood that, for the expansion of the chain of home real estate commission to improve the news agency ranked second in Beijing I love my family launched the "full ownership" of the Golden Key program solicitation agent to join.

This year, the Beijing second-hand housing transactions bleak, annual turnover is likely less than 10 million units, the lowest, the industry since 2009 highlights the contradiction. From the beginning of the intermediary live off Union boycott, SouFun, to terminate cooperation with Homelink comprehensive SouFun, then no stores intermediary Q Housing Network proposed commission of up to 85% this year, is undergoing dramatic changes in the traditional intermediaries, for this transformation, Yang Hao that the next period of time, the intermediary industry will face a very tough competition, small intermediary broker Homelink will be poached, while small companies will go bankrupt because of dwindling business a lot, store model will be unsustainable, each agency faces challenge.

An industry source on condition of anonymity, said the practice is actually the source of the price war to seize the market, and the future, depending on the service, a wide range of prices will be the trend. And now is the confrontation of each agency strategy, competitive situation possible to clear next year.

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