The information indicates that, as of 18 february, the cost of the chongqing shell service platform, the chongqing chain buyer's transaction service, was adjusted to 1 per cent for the seller and 2 per cent for the buyer (previously 0 per cent for the seller and 2 per cent for the buyer). As a result, from 18 february, the sale of the house on the shell platform will charge the seller 1 per cent of the service fee。
With regard to the increase in the price of second-hand house intermediaries for the chain, the insider of the shell revealed to the network of observers that the industry standard was 3 per cent, and that the whole shell system was in principle implemented in accordance with that standard, although, in addition to the direct-camp system, there was a combination of brands, actual implementation and each brand's strategy, city conditions, and the level of strict enforcement of uniform standards was not yet reached。
On 10 march, several chain agents confirmed to the observer network that the current commission for the second-hand house trade of the shanghai chainers was actually 3 per cent. It is worth noting that, although the buyer apparently bears 2 per cent and the seller 1 per cent, it hides another set of “trade rules”。
Monopolistic pricing
“the fee for second-hand houses in shanghai is usually three points.” on 10 march, li qian (alias) a consultant in the shanghai chain business indicated to the observer network that, in fact, the cost was equal to the cost borne by the buyer。
This was endorsed by a business consultant (alias) located in the hangzhou chain. It informed journalists that the current rate for hangzhou chainers is less than 1 million, each receiving 1. 5 per cent and more than 1 million, respectively。
"the wool comes out on the sheep, which is the same for everyone, or the same for the price."。
As early as late 2018, the trade commission for second-hand houses for shanghai chains had been raised from 2 per cent to 3 per cent. Of these, 2 per cent were borne by the buyer and 1 per cent by the seller。
The shanghai chainers explained the increase in rates in the note on the adjustment of the shanghai chainer fees as an increase in services. The shanghai chainers stated that the second-hand house trading process was complex, long-term and high-risk. For a long time, the overall quality of services in the real estate brokerage sector has lagged far behind the urban quality of shanghai, where transactions are highly volatile and the security of transactions is not guaranteed and the requirements of shanghai citizens cannot be met。
It's also worth mentioning that in 2019, shell went to the chairman of the board of directors. In an interview with the media, it was stated that he did not consider china's intermediary fees to be high in the world. According to wing, china's rate is around 2. 5 per cent, the united states of america, japan, 6 per cent, and south africa, 8 per cent. If the industry wants some highly qualified people to serve, it will probably require a broker's income of 1. 2 times that of the urban population。
In other words, it is argued that the increase in brokering fees is not determined by the shell system but by industry and that 3 per cent is by no means the end point。
The fact is, however, that prior to the announcement of an increase in the shell system, the 2 per cent intermediary fee for second-hand house transactions had been applied by national intermediaries for many years, and since then, the number of large and small intermediaries has been raised to 3 per cent。
One of the executives of a large intermediary company has revealed to the network of observers that the oligarchy of the shell as an intermediary industry is unquestionable, but it is unlikely that there will be an absolute occupation of the market and that middlemen such as nakahara and the owner will have a high market share in some cities. So the initial price increases were also limited to some cities with high rates of occupancy of some shellfish, and then gradually expanded, “why not? After all, i didn't open my mouth, and small and medium-sized intermediaries followed me?”
As a result, the 3 per cent intermediary fee declared by the shell system was rapidly transformed into a new industry standard。
Real estate analysts have leapfrogged to the network of observers to indicate that during the two sessions this year there was also a voice to prevent the emergence of a monopoly in the brokering industry. Businesses should be actively involved in raising the cost of services through monopolistic positions, be more equitable and open and genuinely contribute to the healthy development of the industry。
Money's a problem
For shellfish, the problem of “financial embarrassment” that lies behind the price hike is a matter of thought。
According to the public information, shell searching has been upgraded by a network of chainers, with a technology-driven quality housing service platform, bringing together and empowering high-quality service providers across industry, creating an open quality housing service ecology, and working to provide 300 million families with a full range of residential services, including second-hand homes, new homes, rentals, renovations and community services。
According to the financial data, in 2017-2019, shells earned 25. 51 billion yuan, 28. 65 billion yuan and 46. 01 billion yuan, respectively, from their homes; the net profit to the mother was 574 billion yuan, 468 million yuan and 2,184 million yuan respectively. In 2018-2019, the company had a net asset return of -3. 44 per cent and -9. 43 per cent, respectively。
By the end of 2019, total corporate debt stood at $35. 73 billion, and by the end of september 2020, total corporate debt had risen to $39. 84 billion。
In terms of cash flows, in 2017-2019, cash flows from shell-searching operations were $6,456 million, $3,217 million and $113 million, respectively. By the end of the third quarter of 2020, the company's cash in hand and cash equivalents totalled $4. 612 billion。
Despite the availability of sufficient funds, the pattern of high-speed housing expansion for shellfish also tested its ability to continue contributing to profits and cash flows。
Skywatch shows that since its inception, shells have received multi-billion-dollar funding from top institutions, such as telecommunication holding, baguiland creation, soft silver, redwood capital, and high-level capital. For the future, the shell looking for houses has vowed to say: “in the near future, shell looking for houses will cover more than 300 cities across china, serve more than 300 million community families, link 1 million professional brokers and 100,000 shops, and give them more than 100 brands.” information also indicates that, as of 30 june 2020, 456,000 shell agents had served on shell-searching platforms before shell ipo。
In addition, the above-mentioned executive revealed to the network of observers that the rapid market acceptance of shell price increases, in addition to their high occupancy rates, was linked to the market environment at that time. On the other hand, the parties to the transaction usually go through the intermediary companies, and the risks of the lack of transparency in the transaction are such that the price of the house is raised and the funds are not safe. As a result, shells are multiplying, announcing price increases while also leading the way in raising the quality of services, transparency in transactions, resistance to disorder and so forth, and gaining a sense of market appreciation。
Behind the sub-rule
It is worth noting that while the fee for second-hand house intermediaries appears to be 3 per cent in most regions, there is a separate set of rules behind them。
For example, in the tripartite agreement, shanghai chains clearly indicated that the buyer would take 2 per cent and the seller would take 1 per cent; the chinese original property would be 1. 5 per cent for each buyer and seller; and there were also some intermediaries who indicated only a total of 3 per cent, with a separate agreement on how to collect it。
However, the network of observers interviewed a number of property brokers, and the answers varied, ranging from 3 per cent to 1. 5 per cent, or even commissions。
A shanghai chain broker revealed that the true strict 3 per cent commission was almost exclusive and more profitable, and that the rest of the specific commission was negotiable, after all, there was competition and business was better than no. It makes no sense to make provision for each buyer and seller, since everyone knows where this money comes from and the landlord is concerned only about how much money he eventually received, and the rest is secondary。
“no less than 2 per cent generally.” the above-mentioned housing broker told the network that even the concessions would not be too much, after all, the company had rules to make money. Some intermediaries on the market claim that commissions are less than 2 per cent or less than 1 per cent, mostly with pits, and chainers usually do not charge higher fees。
Recently, a shanghai citizen, liu fong (alias), was caught up in a “food price differential” vortex because of the non-transparent commission of the q housing network。
According to liu fong, she had seen a set of houses worth over 3 million, which, because of their cumbersome procedures and familiarity with the q housing network broker, had been commissioned to deal in the summer after receiving repeated commitments to “collect only 1 per cent of the commission for the entire transaction, without any other cost”。
However, when the transaction was completed, it happened to be known from the landlord that the house he had purchased had been ordered by the broker to raise the price differential of $30,000 and that the landlord had also paid it as a “commission”. In other words, liu fong actually paid nearly 2 per cent of the commission, far exceeding expectations。
The landlord stated to the network that he was not in favour of the intermediary's private price differentials, so that the broker, who had asked for an increase of 50,000, had only raised 30,000, but, as landlord, “i care first of all how much money i received” and the rest was only second。
This may also be the underlying reason why the trade in second-hand houses has been endless, and even many of them have been held hostage for long periods of time。
The executives of the above-mentioned intermediary company told the network that the broker would need the cooperation of the landlord to raise the price of the house, since it was not detrimental to the landlord's interests, so it was not easy to try. " however, such disruptions cannot be eliminated by business commitment alone, except for chainers, such as owners, chinese estates, etc., which clearly indicate whether the difference can be eliminated or whether it can really be achieved or whether it will vary from region to region, and for some local chainers.”
He indicated that, for root causes to be addressed, local authorities were still required to develop rules and enforce them strictly. In shenzhen, for example, since the housing association not only notified the requirement for transparent commissions, but also imposed severe penalties, once it had been verified that the company had been directly suspended, it had seized the lifeline of the intermediary company and prevented it from taking risks easily. Moreover, in such areas, the market occupancy rate for shellfish is low, and fair competition among various intermediaries can also help to shape a healthy market environment。
