Property agencies mulling branch closures and hiring freeze

Hong Kong's major property agencies are contemplating branch closures and suspending new hiring due to the slow market conditions resulting in record-low commission income.

Louis Chan Wing-kit, Asia-Pacific vice-chairman of the residential division at Centaline Property, said the market is facing low trading volume and a gradual recovery period is needed.

The real estate agency plans to reduce the number of branches to control costs, with a goal of abandoning about 50 by the end of this year, aiming to reach a total of about 400 branches.

In June, the residential division of Centaline generated about HK$195 million in commission income, a monthly decrease of about 11 percent, the lowest point of the year.

However, the workforce will not be reduced and the company plans to maintain 5,000 employees.

Meanwhile, Ricacorp Properties stated that their decision to halt new hiring will depend on the market situation.

The secondary market continued to be quiet as buyers became cautious before another round of interest rate increases.

Over the weekend, Centaline recorded seven transactions in the 10 major housing estates, showing a slight increase of three compared to the previous weekend.

The market sentiment remains cautious as investors wait for the interest rate announcement in the US this week, leading to a careful approach to trading. Additionally, there were no new launches in the primary market this weekend.

MTR Corporation (0066) announced that it plans to reissue the bidding for the first phase of its Oyster Bay project on Lantau island in the next 12 months.

Earlier this year, the bidding for the first phase of the project was a failure. To enhance the project's appeal, the company is considering taking on responsibilities like transferring railway facilities and conducting piling work before new bidding.

After the project's bidding failure, MTRC received a multitude of opinions from developers and industry experts, highlighting concerns about the project's large scale, complex development and its proximity to the 24-hour operation of Siu Ho Wan Depot.

In an effort to minimize risks for property developers and streamline the project, MTRC will handle tasks such as relocating pipelines, platform construction and surrounding power facilities.

The Wai, a new shopping mall of MTRC, had a soft opening on Saturday. Situated above Tai Wai MTR Station, the mall is set to accommodate about 150 tenants.

It has an area of more than 300,000 square feet, with 97 percent already leased out.

The number of new shop registrations dropped by 8.4 percent to 87 in June from a month ago, said Midland IC&I.