Gov’t relaxes rules to attract younger buyers for Hengqin apartments

The government will relax the eligibility requirements at Macau New Neighborhood (MNN) in Hengqin.

Effective from May 13, Macau residents aged 18 or above can acquire a residential unit in MNN, the Macau Urban Renewal Limited (MUR) announced in a statement.

The MUR – a private company wholly owned by the Macau government – has said the change in rules comes “in response to changes in the economic environment, with new property market policies implemented in Macau and Hong Kong after listening to opinions across all sectors.”

The company is said to have requested amendments to the Executive Committee of the Guangdong-Macau In-Depth Cooperative Zone in Hengqin, asking for improvements on the eligibility requirements. This request was approved May 6.

The MNN went on sale in late November last year when some 800 units, of 4,000, were made available.
According to the latest figures released by the MUR, some 1,000 units have been sold in the MNN to date.

Although these sales attracted many people at the first stage, late in the year, several reports noted the housing units at the MNN were becoming less interesting for potential buyers after they realized the units were only being financed at about 80% of their total value.

In a report by the news outlet Macao Daily in December last year, many buyers were quoted claiming they had decided to purchase housing units in the MNN on the assumption that they would be maximally financed (90%).

Against their expectations, they were later told they would only receive 80% financing, and that only specific groups would receive 90%. In some circumstances, purchasers were ultimately granted only 70% of financing by the banks involved due to age-related concerns.

At the same time, the Bank of China (Macau) claimed to have approved over 100 mortgage applications out of approximately 300 requests for the locally financed MNN.

With the lowering of the requirements for the acquisition of the units, particularly for younger age residents, the MUR hopes to attract new and younger buyers to its development.