Ricacorp to lay off 300 as interest-rate increases sour sentiment and slow sales
Hundreds of real estate agents are facing the sack as rising interest rates take their toll on the property market, souring sentiment and dragging down the number of fee-generating transactions.
Ricacorp Properties, one of the Big Four agencies, has been the first to admit feeling the pinch. It has decided to lay off 300 of its 1,700 agents, and will close up to 10 of its 150 branches to tackle the 'deep winter' that has descended on the market since interest rates began rising in the second half.
Industry players worry that if sluggish conditions persist, more agents may lose their jobs in the next few months, especially in small and medium-sized firms.
'There is just not enough business for everyone in the industry. Even big guns are having trouble,' said Cheung Tin-sung, chairman of the Hong Kong Real Estate Agencies General Association. 'Unless the market rebounds sharply, I expect more small and medium-sized agencies to close down their business in the near future.'
The remaining big firms - Centaline Property Agency, Midland Holdings and Hong Kong Property Services - said yesterday they had no immediate redundancy plans. But they admitted the short-term outlook was 'challenging'.
