The effects of the global pandemic in the city’s realty sector have consumed a lot of cash flow, making it difficult for companies and small property owners to sell properties for cash and increasing the burden on internal circulation of funds, said Chong Siu Kin, president of the Macau Real Estate Chamber of Commerce.
In a symposium to discuss the impact of the fall of the real estate market in the city, Chong has called on the government to fully lift its cooldown measures, a call that realty groups have been demanding, as the market is expected to face a downward trend this year.
The realty expert has also suggested that Macau refer to Hong Kong’s policies and launch policies to attract investors.
Recently, Hong Kong’s government has lifted curbs on property deals after home prices fell to a seven-year low, adding to the Chinese territory’s woes.
Finance minister Paul Chan recently announced the move in a speech presenting the territory’s budget, which also raised spending on tourism promotion. He said all curbs, such as extra taxes, imposed earlier to cool the property market, would be lifted with immediate effect.
What Chong also noted was that Macau follow Hong Kong’s investment residencies in a bid to revive the sector and attract the wealthy.
After eight years, Hong Kong brought an investment migration program in a bid to restore its status as a global financial hub within China’s sluggish economy and steady outflow of talent.
Under the revised Capital Investment Entrant Scheme, which will begin accepting applications from mid-2024, foreign nationals and mainland Chinese individuals who hold foreign residency status will be granted the right of abode if they meet necessary requirements.
Echoing similar sentiments, Centaline founder Shih Wing Ching said the current implementation of the cooling off measures is still not appropriate in the present market as the sector is still facing severely low transactions, the businessman said.
Thus, the businessman believes that if the government also implements the policy similar to Hong Kong, then it can attract investments to Macau and aid in stabilizing the market. Otherwise, property prices will continue to fall, affecting ordinary citizens who hold self-occupied properties.
Recently, chambers have been warning of a grim post-pandemic property market amid the recovery in the city’s tourism and gaming market.
According to the current environment, even if the government launches another land auction, there will be no bidders. If the government does not adopt improvement policies, it is expected that the price per square foot of the property market will continue to fall.
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