Juliet Risdon
Juliet Risdon is a Director of JML Property and a property investor.
Having established the company in 1994, JML Property offers Investment Property & Homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
As always, this past year has been an interesting one for Macau and its Property.
The beginning of the year saw property prices at a record high, having climbed between 20% and 40% over the previous 12 months in 2013 (dependent on the property, where it is located, size etc).
Rental prices had also increased over the previous year, and again the amount of the rise varied depending on which building and development you were in. The most aggressive rises were in Taipa and Coloane.
“It can’t go on”! they said.
Well, since the beginning of 2014, property values increased by another 40% to 60% before a slight drop at the year end, and rental prices have followed closely behind.
For a nicely appointed a 2 bedroom apartment in Taipa that does not have access to any facilities, the current asking price is $5,000,000+ and the rental price range is $12,000 – $16,000.
For a 2 bedroom apartment in Taipa in a complex with common facilities such as a gym, swimming pool etc, the current asking prices start at $7,500,000+ and the rental price range is $15,000 – $20,000.
A modest family apartment with 3 bedrooms or a more spacious ‘luxury’ apartment with 4 bedrooms will set us back considerably more.
So here is a quick recap of the year in case you blinked and missed it;
The government introduced low cost housing units (albeit in a prime location) in order to provide affordable housing and ‘cool down’ property prices.
8,649 units are released into the market to pre-qualified applicants. The scheme is expected to house up to 30,000 people (Average occupancy in Macau is slightly more than 3 persons per apartment).
Meanwhile the supply of new apartments into the market is expected to be somewhere between 1,200 & 2,000 when figures are announced (in 2013 it was just over 1,000 new apartments).
Population in Macau at the end of 2013 was 607,000. 2014 population figures will be announced in the new year, it is expected to rise to a figure between 615,000-620,000. That’s an increase of between 8,000 and 15,000 people.
Rental prices rose by 30% – 50% across the board.
Property Values rose by 40% – 60% before declining at the end of the year by approximately 10%
The government announces 24/7 border crossing imminent, target date Dec 18, 2014 starting with the Hengqin Border. Government spokespeople declare that this will help reduce rental prices in Macau
Did the government get it right this time ?
Will the easing of the border crossing and the potential for immigrant workers to live in China and commute have an effect on Macau prices ?
Tune in for the next installment to find out the answers to these and many other questions at the end of 2015…
www.JMLProperty.com
info@JMLProperty.com
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