Taking a Closer Look at Beike’s Financials
1. Real estate commission rates tend to hover around 2.7%, and that rate is most likely paid by the buyer (seller’s service fee at 1%, buyer’s service fee at 2%, and mortgage service fee at 1.5%).
2. The property market is heavily policy-driven, and regulatory shifts can have a major impact on housing. Whatever you do, keep an eye on how policy changes affect the market. Chinese listed stocks in the US plunged from 2021 to 2022, largely due to policy factors, with an average drop of 58%.
3. You might be surprised to learn that Beike actually has over 500,000 employees.
It’s also worth keeping an eye on Beike’s ACN (Agent Cooperation Network) for regular people—can everyday investors participate and share in the commission pie? As far as I know, many real estate media outlets, especially local ones, have already joined the commission distribution.