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Homelink, one of China’s largest brokerages, closes 87 Beijing offices

As Chinese real estate regulators crack down, a big player is in retreat

Homelink president of international operations Gene Shi
Homelink president of international operations Gene Shi

Beijing Homelink Real Estate, one of China’s largest brokerages, announced the closure of 87 offices in the country’s capital citing an attempt to “proactively abide by compliance requirements” amidst an increasingly tight regulatory environment for China’s real estate industry.

China’s government is acting on initiatives designed to bring down soaring home prices, introducing new restrictions on home purchasing and lending that have rocked the country’s unpredictable real estate market. In March, the government raised the mandatory down payment for second homes by 10 percentage points and cut the maximum length of mortgages to 25 years from 30 years.

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China Vanke, China’s largest real estate developer which lost $10 billion in market value last year as shareholders jumped ship due to regulatory uncertainties, is an investor in Homelink.

The Real Deal reported this month on how Chinese capital controls, which reduce the outflow of domestic capital, are affecting the New York real estate market. [Bloomberg] — Will Parker