Home sales surge in Q1 as rents rise: Centaline

The city’s residential property market rebounded sharply in the first quarter of the year, with transactions nearly doubling year-on-year and rental prices continuing to climb, as policy support and easing financing costs boosted buyer confidence despite ongoing geopolitical tensions.

According to data from the Financial Services Bureau cited by Centaline, residential transactions reached about 1,328 in the first three months of the year, up roughly 95% from a year earlier.

Monthly deals climbed from 384 in January to 494 in February, with March expected to hold around 450 transactions.

The recovery follows the implementation of two key measures on Jan. 1 – a tax exemption on the first MOP6 million of property purchases and a higher mortgage cap of up to 80% – which have injected momentum into the market.

“Buyer sentiment has shifted from a wait-and-see approach late last year to actively entering the market,” said John Ng, senior regional sales director at Centaline Macau, in a press conference yesterday.

Prices have also stabilized, with average residential values edging up about 1.5% year-on-year in the first quarter to around MOP75,000 per square meter, supported in part by new project sales.

According to Centaline, some investors have already realized gains. A unit at One Oasis purchased for about MOP5.85 million last year was resold for about MOP6.88 million, generating more than MOP1 million in profit.

Luxury transactions remained subdued, with only about six deals above MOP15 million, down 50% year-on-year, though average prices rose due to high-end villa transactions.

Meanwhile, the rental market has maintained an upward trajectory.

Official data showed average rents rose to about MOP139 per square meter last year, up 2% annually, with stronger gains recorded in districts such as NAPE, Nam Van, and Coloane. Mid-sized units between 100 and 149.9 square meters saw the most notable increases.

Despite uncertainty stemming from tensions in the Middle East, analysts said the local property market has remained resilient.

In neighboring Hengqin and Zhuhai, the market showed a more mixed performance. Zhuhai recorded 5,758 transactions in the first quarter, down 26% from the previous quarter, although activity rebounded in March after a slow start to the year. Average prices in the city slipped slightly to about RMB18,853 per square meter.

Hengqin, however, saw transaction volume fall 58% quarter-on-quarter to 610 units, largely due to limited residential supply. Prices in the area bucked the trend, rising 17% to around RMB22,770 per square meter, reflecting sustained demand and the perceived long-term value of the district.

According to the realtors, the overall decline in transactions is mainly due to insufficient housing supply, but “property values in Hengqin remain firm and continue to attract buyers.”

Looking ahead, the real estate agents expect momentum to carry into the second quarter, supported by new project launches and improving sentiment across the Greater Bay Area.

“We believe that through more high-quality cultural and economic development, market confidence will continue to strengthen,” said Roy Ho, director at Centaline Macau and Zhuhai Hengqin.

Centaline managing director Stanley Poon added that geopolitical uncertainty has reinforced property’s appeal as a defensive asset. “After several years of price corrections, Macau’s residential market is showing early signs of a healthy recovery,” he said.

Realtors expect second-quarter transactions to remain active, with total deals likely to surpass the 1,000 mark again as pent-up demand continues to be released.