Association warns of sharp property price drop

The General Association of Real Estate of Macau has warned over what it describes as an “abrupt fall” in residential property prices, warning that the decline is eroding consumer confidence and investment sentiment.

In a recent report, the group urged the government to introduce stronger measures to stabilize the market, including lowering the minimum down payment requirement for home purchases to 15%.

According to the association, the housing market has remained weak despite incentives rolled out last year. Property values have continued to slide, with the average price per square meter down by more than 40% since the peak in 2018.

The report, titled “Impact of the Expansion and Recession of the Real Estate Market on Macau’s Economy and Society,” notes that existing measures have failed to slow the downturn.

Data from the Financial Services Bureau show that the average residential price per square meter in the first half of June stood at MOP65,618, compared with MOP92,439 during the same period in 2024 – a year-on-year decline of around 30%.

“This year, the recession in Macau’s real estate market has intensified, with no signs that the sharp fall in transaction prices will stop,” the association wrote.

The group cautioned that the downward spiral is not only discouraging investment but also weakening local purchasing power, creating what it calls a “vicious cycle of deterioration” in the city’s business environment.

It stressed that thousands of buyers who purchased homes with 80% bank financing have seen years of mortgage payments wiped out by the decline in property values.

To ease pressure on buyers and stimulate demand, the association recommended a series of fiscal and policy measures.

Among its proposals are subsidies for down payments, reinstating a 4% mortgage interest subsidy for homebuyers, and lowering transaction-related costs such as stamp duty, notarial and deed fees, and other property taxes.

These steps, the association argued, would reduce financial burdens on residents and encourage them to upgrade or change homes, thereby helping restore market confidence.

The association also renewed calls for an investment immigration scheme.

It suggested granting residency rights to individuals who have lived in Macau for seven years and hold at least MOP20 million in assets, including MOP10 million in commercial or industrial properties and another MOP10 million in residential units. Times Reporter