The volume of transactions in the new property market has dropped significantly, making real estate brokerage business difficult. The four major real estate agencies in Hong Kong recently issued an internal notice, instructing that starting from January 1 this year, all first-hand new property transactions must have a commission fee of at least 2% or more.
After the Competition Commission (hereinafter referred to as the Competition Commission) responded to the relevant behaviors, the Estate Agents Supervision Bureau (the Land Supervision Bureau) also pointed out that estate agents should pay attention to avoid violating the "first conduct rule" in the "Competition Ordinance", Estate agency companies should make independent commercial decisions.
In determining the commission rate, an estate agency company may be in breach of the First Act if it does not make an independent decision but joins forces with competitors to agree on the commission rate it will charge (whether or not the commission rate is considered typical for the industry). code of Conduct".
Under such circumstances, estate agency companies should be aware that adopting the same commission rate on a consensus basis with competitors may violate the Competition Ordinance.
Similarly, estate agents should not represent to clients that there is any "flat" or "standard" commission rate in the industry, the EAA continued.
The Bureau also stated that it has always maintained close contact with the Competition Commission, and the education industry must abide by relevant laws. Regarding this incident, the Bureau will follow up.
