Chinanews.com, December 12 (Zhongxin Financial Reporter Zuo Yukun) "Real estate intermediaries should reasonably reduce the cost of housing sales and rental intermediary services. Encourage the implementation of tiered pricing in accordance with the principle of higher transaction price and lower service rate. The intermediary service fee shall be shared by both parties to the transaction. ”

For the intermediary fee, a "big and difficult" problem in housing transactions, the first-tier city of Guangzhou has also taken action.

On December 12, the Guangzhou Municipal Bureau of Housing and Urban-Rural Development and the Guangzhou Municipal Administration for Market Regulation issued the Implementation Opinions on Regulating Real Estate Brokerage Services (hereinafter referred to as the "Opinions"), becoming another first-tier city after Beijing that has set its sights on the real estate intermediary industry.

Data map: The vehicle passes in front of the first building. Photo by China News Service reporter Zhang Yun

"The higher the transaction price, the lower the service rate"

"Since last year, the state has repeatedly proposed to promote a virtuous cycle of real estate, and dredge the transaction link by reducing interest rates and reducing transaction tax costs." Li Yujia, chief researcher at the Housing Policy Research Center of the Guangdong Provincial Urban Planning Institute, said that in September, Guangdong introduced a policy at the provincial level to regulate real estate brokerage services and fees, and Guangzhou's follow-up is also expected.

The most concerned part of the opinion is, of course, the adjustment of intermediary fees. According to the opinions, real estate intermediaries should reasonably reduce the cost of housing sales and leasing intermediary services. Encourage the implementation of tiered pricing in accordance with the principle of higher transaction price and lower service rate. The intermediary service fee shall be shared by both parties to the transaction. Real estate intermediaries shall not charge any fees that are not indicated, and shall not use false or misleading price means to commit price fraud.

"Intermediaries or platforms to reduce the commission of second-hand housing transactions will effectively reduce the cost of buying a house for most groups of buyers who just need and improve." Yan Yuejin, research director of the E-House Research Institute, said that especially in the context of the increase in the number of second-hand housing listings in major cities, the reduction of intermediary fees will help enhance market liquidity and improve the efficiency of real estate transactions.

"The concentration of intermediary services in Guangzhou is not high, and some intermediaries have adopted a low-fee model in order to seize the market. Guangzhou did not clarify the magnitude and level of the rate adjustment this time, but only for policy guidance, and in practice, it still needs to be determined by brokerage institutions, buyers and sellers based on market-oriented negotiations. Therefore, Li Yujia believes that the effect of the Guangzhou document has yet to be practiced by the market.

The opinion also mentions that real estate brokerage institutions with a dominant market position shall not abuse their dominant market position to charge intermediary service fees at unfairly high prices. Real estate internet platforms shall not compel real estate brokerage institutions that join the platform to implement uniform brokerage service fee standards, and shall not interfere with real estate intermediaries' independent determination of fee standards. The housing and construction (housing management) department and the market supervision and management department shall supervise and inspect the real estate brokerage institutions with a dominant market position in accordance with their functions.

Li Yujia said that many intermediaries take advantage of information asymmetry and other problems to include unnecessary fees, such as bridge financing, mortgage fees, guarantee fees, etc., which cause additional burdens on residents to buy houses. It is of greater significance and urgency to standardize and rectify the trading behaviors of relevant markets and their subjects, including brokerage services.

Data map: Guangzhou. Photo by Wang Jian

Beijing has taken action, and Chengdu has followed suit

For buyers, there are two pain points that are difficult to ignore: one is that the ideal new house cannot be bought, and the other is that the second-hand housing agency fee is too high. The industry believes that in the context of the rise of improved demand and rental demand, in order to make housing circulation and serial single transactions smoother, the information and services provided by brokerage institutions and brokers are very important and have become a key component of the lubrication cycle.

Previously, the Ministry of Housing and Urban-Rural Development and the State Administration for Market Regulation issued the "Opinions on Regulating Real Estate Brokerage Services", which clearly pointed out that the real estate brokerage service fees shall be determined by the parties to the transaction according to the service content, service quality, combined with market supply and demand and other factors, and pointed out that "real estate brokerage institutions should reasonably reduce the cost of housing sales and rental brokerage services" and "guide the two parties to jointly bear the brokerage service costs".

Beijing took the lead in responding to the "laying" of intermediary fees. On September 9, Beijing Lianjia, which accounts for the largest proportion of Beijing's second-hand housing market and has the highest service rate, announced that it would reduce the intermediary fee from 26.2% to 7%. Moreover, the intermediary fee is no longer borne by the buyer alone, but shared by the buyer and the seller, each bearing 2%.

"Significantly good for groups that just need and just change." Guo Yi, chief analyst of Heshuo Institution, is optimistic about the adjustment, she believes that under the guidance of national policies and the guidance of the Beijing Municipal Commission of Housing and Urban-Rural Development, in line with the current changes in the supply and demand relationship of the real estate market, Beijing Lianjia has adjusted the way and standard of second-hand housing transaction service fees, which is a positive factor to promote the healthy and stable development of Beijing's real estate market.

On the same day as Guangzhou, on December 12, according to the official public account of "Chengdu Release", Chengdu issued the "Notice on Further Regulating Real Estate Brokerage Services". It is mentioned that real estate brokerage institutions should reasonably reduce the cost of housing sales and rental brokerage services, and encourage the implementation of tiered pricing in accordance with the principle of higher transaction price and lower service rate.

Multiple real estate agencies. Photo by Su Ting

Other cities are also expected to follow suit

"The adjustment of intermediary fees is essentially the inevitable result of the new situation of major changes in the supply and demand of real estate. Moreover, judging from the recent sharp price reduction of second-hand housing owners in first-tier cities and the rebound in sales, buyers who mainly need to improve are very sensitive to prices, and the reduction of transaction rates can boost market confidence and help improve sales levels. Li Yujia said that in the future, reducing rates to compete for market share may still be the main theme of brokerage institutions.

Yan Yuejin mentioned that the second-hand housing brokerage service is a strong regional market, and for a long time, there are great differences in the mode and standard of intermediary fees in various cities, which stems from the supply and demand of the second-hand housing market in various cities, the development level of the brokerage service industry, and historical habits. It is expected that other real estate brokerage companies and cities will also follow the principle of "one city, one policy" and adjust according to their own judgment of the market situation.

Li Yujia also reminded that the rate reduction is conducive to the promotion of transactions and the acquisition of dividends by consumers, but after the price reduction, whether the service quality provided by the brokerage institution can be guaranteed and whether it can avoid the flaws, such as access to high-interest financing (consumer loans, business loans), such as providing false listings to deceive buyers, etc., is also very important. (ENDS)