Midland Holdings, a Hong Kong-based real estate chain operator, will close all its Midland Realty outlets in Shanghai by the end of this month as the company plans to exit from the existing house brokerage business in the city.
Midland, which operates eight outlets across the city, will still retain its head office on Sichuan Road N. to seek other opportunities such as servicing new homes, and the latest move to shut down its branches in Shanghai is a "strategic" decision made by the Hong Kong headquarters, Oriental Morning Post reported yesterday, citing Ding Wei, vice general manager for Midland's Shanghai operations. Phone calls to Ding yesterday were not answered.
"One of Midland's biggest problems that led to its current plight could be bad management," said Song Huiyong, research director at Shanghai Centaline Property Consultants Ltd, another Hong Kong-based chain which is now the city's largest by transaction value.
"All major decisions involving its local operations must be made at its Hong Kong headquarters and that model of management would surely prevent it from reacting promptly to market changes, which is important in the realty business," Song said.
Midland, which entered Shanghai in the mid-1990s, once operated more than 50 branches city-wide during its heyday in 2007 but began to downsize gradually over the past few years as business fell.
Most industry analysts, however, agreed Midland's decision to close its branches might have a very limited impact on the sector in the city.
Shanghai Deovolente Realty, which eyes the high-end residential market, aims for 75 outlets from 70 now, said Luo Yadong, its vice general manager.
