Homelink, China’s biggest property agent, closes 87 branches in Beijing as buying curbs bite
Transactions handled by the agency tumbled 77 per cent in April amid tight restrictions on mortgage lending and sales of ‘commercial flats’
China’s largest property agency, Homelink, confirmed on Tuesday that it has closed 87 branches in Beijing, underscoring the depth of the city’s real estate market woes after unprecedented government tightening.
The company, which recently attracted China Vanke as an investor, said in a statement that it had shut the outlets after a fourth straight week of falling business in the wake of the harshest purchase restrictions in the capital’s history. Previous reports said Homelink would shut down 300 stores across Beijing. The agent did not say how many more stores it plans to close.
“Our stores’ business has dropped about 70 per cent since the curb, as we can’t sell [commercial] apartments now,” said Zhang Meng, a Homelink agent in Beijing, referring to flats in buildings that were originally designated for commercial use. “Now we handle nearby ordinary homes, which other stores also do. Competition is fierce and no single home was sold through my hands.”
Beijing has launched a spate of curbs targeting sales of new homes, pre-owned homes and so-called ‘commercial apartments’ since March 17. The intensity of the restrictions surprised even industry insiders.
Second-time buyers of most homes in the city now have to pay a minimum of 80 per cent of the property’s value out of their own pockets, while buyers with any mortgage history – even having paid off their debts – no longer enjoy the “first-time buyers” status they were previously granted.