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Exclusive | Hong Kong’s most lucrative jobs lose their allure as property agents quit in droves on 70 per cent plunge in sales commissions
- ‘We have seen 200 to 300 agents quit last month because they cannot survive on just the basic salary,’ said Sammy Po, chief executive of Midland Realty
- Falling stock prices and job losses create negative wealth effect, prolonging gloom in the economy
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Hong Kong’s property agents are bracing for the long haul as a shrinking market dents their take-home pay and forces some to quit the industry.
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Salaries, which are largely anchored by sales commissions, have dropped about two thirds in the current market slump, according to some agents, after buyers shunned showrooms and flat viewings this year to avoid contracting Covid-19.
Falling stock prices and job losses have dented the wealth of homebuyers and investors, causing many to batten down the hatches. The result is a pullback in spending on big-ticket items, prolonging the gloom since last year when anti-government protests rocked the city.
“Those who have not sold any flat in the past couple of months, are likely to resign,” said Sammy Po, chief executive of Midland Realty. “We have seen 200 to 300 agents quit last month because they cannot survive on just the basic salary. The dropout is about 20 per cent higher than in a normal month.”
Midland issued a profit warning in December after incurring HK$25 million in losses in the first 11 months of 2019, according to its exchange filing. It earned HK$58 million in 2018.
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