Hong Kong real estate agents face tough times as home sales drop 39 per cent in first quarter
Candid Properties went through staff cuts, Qfang curtailed expansion in the city.
Hong Kong’s first real estate agency offering 0 per cent commission for clients is finding it tough to survive in the city with its weakening housing market.
Online real estate agent Candid Properties, saw staff numbers drop to four from 15 in six months.
“The market is bad, there are fewer transactions and fewer foreigners coming to Hong Kong,” said Alastair Hoyne, the founder and chief executive of Candid.
Hoyne, a former investment banker who was born in the UK, established the company in November 2015 with the ambition of revolutionising Hong Kong’s real estate business.
Rather than charging both client and landlord — an established practise in Hong Kong — Candid only charges owners, at a 1 per cent rate for sales and half of the month’s rent for rentals. For buyers or tenants, it is free.
The market is bad, there are fewer transactions and fewer foreigners coming to Hong Kong
Hoyne said he wanted to bring a “cheaper and better” service to consumers as he found the market in the city was monopolised by several big realters whose websites were not user friendly and had very few pictures and limited information. Those agents were being paid primarily on commission and not helping others find something within budget, he said.