Northbound vehicle policy impacts both commercial and residential markets
The Northbound Travel for Macau Vehicle policy has negatively affected both the commercial and residential realty markets, a regional realtor disclosed in a statement yesterday.
Local businesses, especially caterers, have voiced their difficulties amid the roll-out of the policy. They noted that many local residents choose to dine in Guangdong on weekends. Several social media groups have also seen posts praising the breadth and quality of dining options in neighboring Zhuhai, persuading people to eat in Zhuhai instead.
Jack Lei, regional sales director of the commercial sector at Centaline Property in Macau stated that amid revivals in the real property market after the resumption of normal travel, the northbound vehicle policy has impacted rental prices in traditional residential districts such as the North and the Fai Chi Kei districts.
According to him, larger shop spaces suitable for hospitality and dining in these districts have seen their tenants requesting rental reductions between 15% and 20%. There has also been an increase in the sales of businesses and number of shop spaces being re-leased.
Shop sale prices in such districts have also seen a price reduction of 10% on average, incentivizing more people to buy instead of rent. Selling prices of shops in tourism districts stayed robust, and when combined with weak supply, sale transactions have been slim in number.
The realtor estimated that 131 transactions on the sale of shop spaces were recorded in the first half of the year, 16% lower year-on-year. Meanwhile, there were about 1,500 deals closed in the first half of this year for shop leases, with tourism districts seeing the highest activity.
Office spaces should expect tougher challenges as government offices will gradually be relocated to private spaces, the realtor warned.
In the residential market, properties in the traditional residential districts have seen a falling number of transactions, Jimmy Lo, senior regional sales director said. He estimated the city would see about 1,800 residential property sales in the first six months of the year.
The rental market for residential properties has warmed up with about 15% to 20% in rentals, as external workers and businesspeople started returning to Macau.
Discounts offered for brand-new residential properties have attracted many buyers to opt for new constructions. The market of large residential properties has remained weak, the realtor added.
Looking towards mainland China, Roys Ho, principal director for the realtor’s Hengqin branch, expects the mainland property markets to only thrive in first-tier and strong second-tier cities, as well as special policy regions. Property markets in Zhuhai have a better forecast due to various supportive policies, he added.
