Centaline says mainland China unit has ‘huge’ unpaid developers’ commissions

Centaline says mainland China unit has ‘huge’ unpaid developers’ commissions

Centaline Property, a Hong Kong property agency, has stated that its mainland China unit is facing a significant amount of unpaid commissions, which has resulted in the inability to pay employees their commissions. This response comes after reports of delayed payments to the unit by developers, including the troubled Evergrande. The housing market crisis, increasing default risk, and a struggling economy have contributed to property developers and agents falling behind on commission payments.

In a statement released on Friday, Centaline explained that its mainland arm, Centaline Property Agency (Shenzhen), has not received certain commission fees due to the ongoing debt crisis and liquidity crunch faced by property developers. The company acknowledged that the current amount of unpaid commissions from developers and agents is substantial, making it impossible for Centaline Property to advance these payments to its employees. However, no specific figure for the unpaid commissions was provided. According to the Securities Times state news outlet, the commission owed to the Shenzhen subsidiary had exceeded 1 billion yuan ($137.19 million) as of August 21.

Centaline assured that the Shenzhen unit has paid fixed salaries up until July and emphasized that all of its units are operating normally, with no plans to withdraw from the mainland China market. The company has established a dedicated team to handle overdue payments and has committed to prioritizing the settlement of corresponding commissions with employees once funds are recovered.

Liu Tianyang, the leader of the team, revealed to the Securities Times that some developers have used housing to offset commissions, resulting in a loss of revenue for the Shenzhen property agency. Centaline acknowledged that it is operating under significant pressure and that paying commissions to employees would only exacerbate its difficulties.

In conclusion, Centaline Property’s mainland China unit is grappling with a substantial amount of unpaid commissions, leading to the inability to pay employees. The company is facing challenges due to the housing market crisis, default risk, and a struggling economy. However, Centaline remains committed to its operations in mainland China and has established a team to address overdue payments and prioritize commission settlements once funds are recovered.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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