China’s major property sales brokers will drive small agents out of business amid surge in fundraising, says Fitch

Intense competition between agents selling lived-in homes will eventually leave just a handful of large operators, the ratings agency said in a note

The prediction comes amid a slew of major fundraising efforts by big Chinese estate agents

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People walk past residential buildings in Beijing, China, on April 16, 2021. Photo: Reuters

Published: 6:28pm, 6 May 2021Updated: 6:28pm, 6 May 2021

Hundreds of small property agents in China will disappear completely as their much bigger rivals take over their business amid a surge in capital from investors, according to Fitch Ratings.

Ramped up competition between agencies selling lived-in homes will eventually leave just a handful of large operators, according to a note published by the international credit ratings agency on Thursday.

“There are over 1,000 agency brands in the property broker sector, mostly micro and small ones,” said the authors led by associate director Karl Shen.

“The sector will see higher concentration as competition intensifies and leaders continue to expand via M&A [mergers and acquisitions]. Thirst for capital will not be quenched until there are ultimately only a few major players, or a super one versus a few major ones.”

The prediction comes amid a slew of major fundraising efforts by big Chinese estate agents.

Shanghai-based real estate platform Anjuke Group filed for an initial public offering (IPO) on April 8 on the Hong Kong stock exchange.