Legislative Assembly to discuss ‘rent ceiling’ proposal

The Legislative Assembly is expected tomorrow to debate a proposal regarding the tenancy law, aimed at addressing sensitive issues such as the length of tenancy and a proposed rent ceiling. The rent ceiling, or the establishment of a maximum rent increase, is being hailed as the most significant change, which would be tied to consumer price indexes (CPI) and the pace of the real estate market.
The draft, whose main proponent is lawmaker Chan Meng Kam, is looking to for relevant authorities to contribute during the signing period of tenancy agreements. It would also reinforce the existing rule that rent increases can only be requested by landlords following the completion of a two-year contract.
Any proposed rent increase cap would apply to both residential and commercial units, and would be correlative to CPI and the overall pace of the real estate market during the year prior to signing the contract.
In addition, lawmakers are tackling the issue of landlord-tenant disputes, reported to be on the rise, through the establishment of a mediation body. This could relieve the pressure put on courts and the Housing Bureau when dealing with disputes.
Macau’s rental market has been put under increasing pressure, mainly due to what many complain are excessive rental costs. Last month demonstrators took to the streets to protest a lack of affordable housing in the SAR, after around 40,000 applicants were unsuccessful in their application for the subsidized housing scheme.
Coupled with a rise in various other conflicts between landlords and tenants, renting in Macau has barely improved in the past few years.