China property service firms hit by fee collection slump
Property management companies in China are withdrawing from contracts as fee collection rates at top firms dropped to 71% last year. This trend threatens property values and forces local governments to intervene to maintain basic services and social stability in vacant developments.
Property service providers in China are struggling to collect management fees as homeowners withhold payments during a prolonged real estate slump. The average collection rate at the top 500 firms fell to 71% in 2024, down from 89% in 2021, with industry executives noting the sharpest drop occurred in 2025. This liquidity crunch threatens property values and forces service firms to abandon residential projects across the country.
### Fee Collection Crisis Erodes Property Values Falling home prices have shifted owner expectations and created a cycle of non-payment. ONEWO INC-H chief operating officer He Shuhua said at a conference that difficulties in collecting fees are now a common industry problem. Onewo, the management unit of CHINA VANKE CO LTD-H, operates under the Vanke Service brand.
