Hong Kong property agency China Real Estate, which has been in the Beijing market for over 30 years, has recently been reported to have significantly downsized its stores in Beijing. According to mainland media reports, multiple China Real Estate stores in Beijing have closed recently, leaving possibly only one store remaining in the city.
As reported by “Times Finance” on May 20th, the China Real Estate store on Wukesong North Road in Haidian district was found to have been mostly emptied recently, with the storefront sign still in place. Nearby staff indicated that the store has relocated to the area near Xidiyutai.
In addition to the Wukesong North Road store, the stores located in Wanliu area in Beijing, including Wan Cheng Huafu Wanliu Academy store, Bishui Yuntian Yiyuan East District store, and Wanliu East Road store, have also closed at the end of April. The staff from these closed stores have relocated to the Jiayuan store in Xidiyutai.
With the closure of the Wukesong North Road store, China Real Estate will be left with only one store in Beijing. At its peak, China Real Estate had over 200 stores in Beijing and nearly 5,000 employees.
A property agent who has worked at China Real Estate in Beijing for over ten years mentioned that factors such as a sluggish market, industry competition, and internal management within the company have all impacted store operations in recent years.
Officials from the China Real Estate Group responded to the aforementioned news, stating that the group does not have plans to withdraw from the Beijing market. The store closures are part of the group’s adjustment to its second-hand housing direct sales business in Beijing, while another business called “Tengyun Lianmai” has been launched in Beijing.
Tengyun is an intermediary empowerment brand under the China Real Estate Group, mainly providing information exchange for developers, homebuyers, and intermediary stores through online promotions and offline channels. The so-called “Lianmai” allows for sharing of property listings among cooperating stores, where agents can show and complete transactions, and commission splits are agreed upon after the deal is finalized.
Established in Hong Kong in 1978, China Real Estate has been operating for nearly half a century and was once known as the top player in the Hong Kong property agency industry. The company entered the mainland market in 1990, and Beijing China Real Estate Brokerage Co., Ltd. was established in October 1994.