Real estate associations have continued to stress that the property market in the SAR has not improved, even after the pandemic, amid robust growth in the city’s tourism and gaming market.
Last year, the transaction volume dropped another 3%, compared to 2022.
For the Macao General Association of Real Estate, led by president Chong Sio Kin, the real estate market situation is grim. The association noted the biggest obstacle at present are stamp duty restrictions.
Late last year, the government announced its decision to partially lift from Jan. 1 this year the then-enacted cooldown measures, such as the 5% additional stamp duty on the purchase of second residential properties. The government has also unified the cap of the 70% loan-to-value ratio for residential properties.
However, at the same time, the cancelation of the mortgage scheme for first-time young homebuyers has put pressure on residential units with transaction prices of MOP8 million or below, as the reduced loan-to-value ratio has affected their affordability.
Earlier this week, the Real Estate Joint Chamber of Commerce called on the government to study the opening of residency for investment and property purchases, and to introduce investors to revitalize the real estate market.
Echoing similar sentiments, Chong said Macau could follow Hong Kong’s scheme of giving residency to people who invest HKD30 million into the city as it steps up efforts to revive its status as a financial center and bolster revenue.
The move is expected to bring in HKD120 billion for Hong Kong annually.
“If the government does not open up to ‘investment immigration’, it will not be able to make the market [better],” he said.
However, he also said there are still concerns about such an investment scheme, as residents may feel that if more people obtain a resident identity card then more people will enjoy the benefits of Macau and increase the financial burden upon the government.
But he stressed the government can set restrictions for future investment immigrants, including the need to pay taxes, and that only up to a certain level can certain benefits be enjoyed.
Meanwhile, Peter Lok from the Macau Real Estate Development Association has also agreed that the industry is very pessimistic about the property market this year.
The association has recommended the government fully ease measures for housing, calling the property cooling measures “out of step” amidst an ongoing shift in attitudes.
Lok agreed that currently only the “investment immigration” policy can attract talent and money.
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.
Realtor JLL earlier noted that it does not foresee a strong inclination towards a boost in the market, even if the government lifts all its cooldown measures.
Therefore, the group further suggested relaxing investment thresholds for Macau’s property market in the surrounding areas, so as to stabilize the healthy development of that market and promote integration with the Greater Bay Area development pattern.
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