ByteDance, the parent company of TikTok based in Beijing, recently launched an offline real estate agency called “Xiaomai” for the Chinese market, opening several related stores in Fuzhou, Fujian province. This new brand will also open physical locations in Lanzhou, Gansu Province, Foshan, Guangdong Province, and Xiamen, Fujian Province, according to a report from Tech Planet on Sept. 15.
Xiaomai mainly provides consumers with a variety of real estate brokerage services, including second-hand home sales and new home sales. In addition, ByteDance’s aggregate decoration service business “Zhuxiaobang” has also launched a stand-alone interior decoration business called “Zhuhaojia”, opening online stores in the Zhuxiaobang app and offline stores in the district. from Chaoyang, Beijing. The new service is currently available in Beijing and mainly offers home decorations for individuals in the city.
With the launch of Xiaomai, Zhuhaojia and other companies in the field, ByteDance has now formed a complete business system for the home and living industry.
From the aggregated real estate information platform “Xingfuli”, to the offline housing brokerage service Xiaomai, to the one-stop decoration service platform Zhuxiaobang and the self-contained decoration brand of ByteDance Zhuhaojia, the users can complete one-stop services through ByteDance Enterprises.
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The real estate brokerage market is quite large. According to data released by Chinese research company Zhongyan, over the past five years, the penetration rate of China’s real estate brokerage industry has increased from 33% to 47% while the scale of new home sales has increased. increased from 0.6 trillion yuan ($86.1 billion) to 3.6 trillion yuan ($516.5 billion). The scale of leasing transactions increased from 0.3 trillion yuan to 0.9 trillion yuan.
In addition to the continuous expansion of market scale, the commission rate in the industry is also gradually increasing. From 2014 to 2019, the average cost rate of real estate brokerage services in China increased by 20%, and commission income increased from 63.6 billion yuan to 251.5 billion yuan. Although the real estate industry is now in a downward trend, the market is expected to rise with the support of various policies, which will help promote the development of the real estate brokerage market.