China Weighs Cap on Property Agent Commissions to Bolster Sales
- Policy aims to boost demand, regulate brokerage fee collection
- Announcement on the rule could come as soon as end-January
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China may impose a nationwide cap on real estate commissions to boost demand in the flagging property market and regulate brokerage fee collection, according to people familiar with the situation.
Authorities are considering a range of 2% to 2.5% of the sale price as a guide, one of the people said, asking not to be identified discussing a private matter. The cap, once in place, is likely to be adjusted every one to three years based on market conditions, the people said.