Agency commission rates hit historic high in hong kong

Commission rates and sales incentives have hit an “historic high” for overseas property deals in Hong Kong as developers struggle to cope with a slump in demand, tighter lending rules and an over-supply of new units.

Local analysts have reported this week that the commission rates being offered in Hong Kong are starting to reach “historic highs” with developers like Wing Tai Properties reported to be offering commission rates of up to 4.5% for two-bedroom flats and 4% for one-bedroom flats at The Warren in Tai Hang.

The project has 103 flats, ranging in size from 550 to 830 square feet and so far Wing Tai has released 68 flats priced at HK$8.85 million. So far, 40 have been sold at the project, which will complete in April 2014.

Elsewhere in the city, Kowloon Development has also raised its commission payments for agents to 4% from 3.5% because, as Eddie Hui Chi-man, deputy director of the Research Centre for Construction and Real Estate Economics at Hong Kong Polytechnic University, said this week developers struggle with "a sudden increase in the supply of new flats."

Source: OPP.org.uk