CCAC finds no issues with housing prices

The Commission Against Corruption (CCAC) investigation into complaints about the Chief Executive’s Instruction No. 57/2024 has concluded the instruction’s housing pricing and subsidy ratios comply with legal provisions.

The anti-corruption watchdog opened a special investigation after several complaints about the selling prices and subsidies for housing units in Lots B4, B9 and B10 of Zone A. After analysis, CCAC determined the issues raised did not relate to administrative procedures or the legality of government actions.

“The content of the complaints seems to confuse prerequisites for application approval, such as the applicant’s lower monthly income limit, with the housing price standards,” the graft buster said in its report disclosed yesterday.

“In fact, there is no legally mandatory linkage between the two.”

CCAC said the selection of the minimum monthly income amount for housing applicants, the timing of price announcements, and the market price considered in subsidy rates are all subject to the discretion of administrative authorities.

When the housing bureau announced the 2019 application requirements, the minimum monthly income for a two-person family was set at 17,680 patacas. For the 2024 price announcements, that figure was updated to 19,270 patacas, as a purchasing power parameter.

“The administrative authorities believe it is appropriate to seamlessly connect the lower limit of income from affordable housing with the upper limit of income from social housing,” CCAC said. “The purpose is to comply with the supplementary principle given by the law to social housing and affordable housing.”

Regarding housing subsidies, CCAC found the market prices used in calculations were assessed by three professional property valuators and comprehensively reviewed by the housing bureau. CCAC deemed this a reasonable exercise of administrative discretion.

Looking ahead, The anti-graft watchdog noted the new housing law has shifted the pricing methodology away from purchasing power standards, which can be subjective, towards a focus on land grant premiums, construction costs, and administrative expenses. This is intended to better align prices with actual costs and reduce potential disputes over subjective factors.

CCAC has submitted its findings to the Chief Executive, closing its investigation whilst advising that continued efforts to inform the public on housing policies and regulations are undertaken.

The commission has recommended that relevant departments provide more early information and education to the public about Macau’s laws surrounding housing, to enhance understanding of the purpose and positioning of public housing initiatives.

Recently, several residents have submitted letters to the CCAC, alleging that the housing prices per square foot in 2019 were unreasonably high with an increase of over 70% compared to the previous period.

They believe the MOP3,300 per square meter price is unreasonable and does not account for purchasers’ ability to pay. In that letter, signatories expressed hope CCAC would investigate potential mismanagement by the government administration. The complaint questions whether the more than 70% price rise from the prior period violates housing laws.