Housing prices hit a decade low

Macau’s housing prices have plummeted to their lowest level since 2012, with the average price per square meter dropping to MOP69,882 last year, a 17% year-on-year decline, as the government moves to revive the struggling real estate market by lifting decade-old property cooling measures.

The Financial Services Bureau (DSF) reports that housing prices are down 30% from 2019 levels. In early January, there were 125 property transactions, a decrease from 203 during the same time in 2019, although this is an increase from 105 transactions in January 2023. The current property price index is at 206.5, a notable decline from 267.4 in 2019.

Last year, the SAR government scrapped the housing market cooling measures amid calls from the property sector as demand continues to weaken.

This comes after several calls from associations to adjust the measures regulating real estate demand in Macau, as well as the tax measures in these regulations, which are a decade old.

The government has abolished the special stamp duty, additional stamp duty, and stamp duty on acquisition, as well as easing mortgage lending restrictions, increasing the maximum loan-to-value ratio to 70% for Macau residents and 90% for affordable housing purchases.

The government previously stated the changes reflect sufficient housing supply and aim to stabilize the market. However, it will retain the ability to reintroduce measures if necessary.

Industry experts like Stanley Poon of Centaline believed that the removal of cooling measures is unlikely to cause a sharp spike in property prices. Rather, it should attract more buyers into the market. Victoria Chan