Ties that bind: Hong Kong’s developers and brokers find that they cannot do without each other
- Industry observers say builders need brokers as residential projects do not sell on their own
- Some developers have announced higher commission rates after ties between Sino Land and brokers soured because of below-market fees
The poorer than expected sales at the weekend at Sino Land’s Grand Central development in Kwun Tong after the builder cut the commission fee for agents, underscores the inseparable relationship between developers and brokers.
“Developers, no matter how big they are, still rely on property agents to help them sell projects,” said Donald Fan, chief operating officer of Paliburg Holdings, a local developer. “If a developer says ‘I don’t need agents any more’, I do not believe its projects will sell well unless it is very cheap.”
Fan said the handling of sales by the developers themselves will be very difficult in the short term because they will need agents’ help when they vie for buyers for projects in the same area.
Pak Shek Kok in Tai Po is a good example where more than 3,000 units are expected to be launched over the next few months.
