Ung Choi Kun
Certain realty transaction restrictions should be reviewed to ensure healthy development of the market, Ung Choi Kun, president of the Association of Property Agents and Realty Developers of Macau, has recently suggested.
These comments were made during his speech at the association’s annual reception.
Ung, a realty developer, recommended that the government review the special stamp duty levied on property transactions.
Citing social views that the aforementioned tax is no longer suitable and reasonable, he suggested the government “seriously review” the tax and consider ending it.
He also suggested the government review the mortgage ratio restriction on first-time property purchases by local residents. Currently, local residents who purchase real property for the first time enjoy certain benefits, but there is a cap on the price of the property as well as a restriction on the mortgage ratio.
To be precise, Ung suggested that the evaluation of available mortgage per the price of the property should be reviewed. His view is that eliminating the restrictions will help young people and newlyweds purchase real estate. It will also help ease issues related to small living spaces.
While commenting on the government housing policy, Ung pointed out that the policy should aim to balance market supply and demand to achieve healthy development of the market. He emphasized that Macau is a capitalist, market economy, which makes the existence of private realty a necessity.
Despite making suggestions on the government housing policy, Ung stressed that he approves of and recognizes the government’s efforts in improving livelihoods through government housing developments.
Ung also believes the city is not fully utilizing and respecting financial services. He commented that financial institutions should be allowed to evaluate mortgage ratio according to their own capacities. In his opinion, this will also help energize and develop the financial industry.
Moving on to comment on the future of the industry, Ung did not predict a prompt bounce-back. He did not forgo the chance to again urge the government to review policies, taxes and administrative measures.
During his speech, he also commented that the government did not make a swift enough response amid three years of economic downturn. He recapped that the city only saw fewer than 3,500 transactions in both housing units and parking spots in the first three quarters of last year, which equates to a 50% fall year-over-year. He described the situation as “miserable.” AL
