Jakarta – A property agent company from Hong Kong, Centaline Property, said that its unit in mainland China has a large amount of unpaid commissions so it cannot pay commissions to its employees.
This is still related to reports of delayed payments to the unit by developers including Evergrande.
Centaline’s remarks come as the worsening housing market crisis, rising default risks and a weakening economy are dragging real estate developers and agents into commission arrears.
“The Hong Kong property agency’s mainland branch, Centaline Property Agency (Shenzhen), has yet to recover some commission fees as property developers grapple with debt crises and liquidity crunch,” Centaline said in a statement as quoted by Reuters, Sunday (27/8/2023) ).
“The amount of unpaid commissions from developers and agents is currently very large and Centaline Property is not in a position to provide such commissions to its employees,” the company said.
They did not provide figures for outstanding commissions, but news outlet Securities Times reported on Aug. 21 that commissions owed to its Shenzhen subsidiary had reached more than 1 billion yuan ($137.19 million).
Units in Shenzhen have been paying regular wages through July, Centaline said, adding that all units were operating normally and would not withdraw from the mainland Chinese market.
Centaline said it has set up a team to deal with late payments and will prioritize settling commissions related to employees once the funds are recovered.
Liu Tianyang, who leads the team, previously told the Securities Times that some developers have used housing to offset commissions, but this often results in loss of addiction for Shenzhen property agents.
He said the company was operating under immense pressure and paying commissions to employees would add to its difficulties.
(dna/zlf)
2023-08-27 12:13:08
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