Hong Kong property brokerages slash payrolls in choppy market

Layoffs expected to top 3,000 industrywide as transactions plummet

Hong Kong's residential real estate market has been rattled in recent months due to a combination of interest rate rises and the fallout of China's zero-COVID policy. (Photo by Takeshi Kihara)

TAKESHI KIHARA, Nikkei staff writer

December 31, 2022 12:01 JST

HONG KONG -- Major real estate brokerages in Hong Kong are slicing payrolls as they try to reduce costs in a historically weak property market. Led by Centaline Property, a big brokerage that is planning to eliminate 30% of its positions, layoffs in the industry are expected to reach more than 3,000.

Rising interest rates, emigration by Hong Kong residents and a slower flow of money from mainland China are accelerating declines in housing prices in the territory. The real estate brokerage business, which was built on the assumption of ever-rising home prices, faces a shakeout. Some may not survive.