Real-estate agents forced to diversify to survive

Real-estate agents in Hong Kong are diversifying their business portfolios in a bid to survive and thrive in a slowing property market.

International consultant Savills, which until now has focused on broking big-ticket property transactions in Hong Kong as well as introducing overseas properties to Hong Kong buyers, is expanding its sales force to enter the mass housing market in the city.

"Our targeted competitors are Centaline Property Agency and Midland Realty," said Raymond Lee, chief executive of Savills, Greater China.

Centaline, meanwhile, which brokers a major share of sales in the mass housing market and is one of the leading property agents in the city, is now planning to expand its business by introducing overseas properties to Hong Kong and mainland buyers.

Midland Realty is also strengthening its diversified portfolio such as its finance, mortgage and overseas property divisions.

The changes come against a background of tumbling sales and commission income in the wake of the government's latest anti-speculation measures, which have triggered a sharp fall in transactions in both the residential and commercial property sectors. Sales of second-hand homes have plunged by 70 per cent since the measures became effective on February 22, according to agents.