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Policy Address 2016 | New housing scheme may be introduced

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Wednesday, November 18, 2015

Chui Sai On pictured during yesterday’s press conference

The Chief Executive (CE) hinted yesterday that a new housing scheme may be established in order to cater for the needs of the younger generation unable to buy residential properties in Macau, given its inflated prices.
At a press conference held yesterday after delivering his 2016 Policy Address at the Legislative Assembly, Chui Sai On listed other policies thought up by the government to improve
the housing market. One of them is “to analyze projects to build private housing at a faster place in order to increase the offer available.”
Admitting that apartments nowadays are “too expensive” for local families, Chui noted that “a lot of money must be paid upfront only to pay the initial installment of the bank loan.”
The CE told journalists at the government headquarters that until now social housing (renting to low income families) has been privileged over affordable housing (sale at controlled prices). However, he acknowledged that “there are voices in local society that now ask for the opposite.” Hence, the region’s leader said a “third possibility”
could be contemplated, although it may not be the on the same lines of a “Macau Property
for Macau Residents” policy that was studied previously and apparently dropped. This time the government may be considering the implementation of a scheme to provide younger residents with flats that they would initially be able to rent at affordable prices and later buy.
Upon being asked about the proposal approved at first reading last week to establish a new rental control mechanism, Chui said that uncontrolled rent increases influence families and retailers and that he agrees with the bill. The rental control mechanism is calculated by a rate based on a coefficient set by the CE. However, he didn’t want to reveal what his prospective criteria will be to set the cap. “First we need to let the issue be debated at the AL. The rental increases must follow scientific patterns. We have specialized personnel that study the prices and know that those prices are volatile,” Chui said.
The other major topic addressed during the press conference was the gaming industry “adjustment,” which Chui considered “natural.” He predicted that gross gaming revenue next year will amount to MOP200 billion, or an average of MOP16 billion per month.
“The adjustment phase will continue,” the CE predicted. “But it won’t affect the population’s quality of life.” PB

‘a conservative expectation’

Chui’s forecast of MOP200 billion GGR next year is “a conservative expectation” given current levels, said Tim Craighead, a gaming analyst with Bloomberg Intelligence. “We expect the mass-market to stabilize and recover, and we believe the VIP business has structural challenges that aren’t going away any time soon.” Grant Govertsen, an analyst at Union Gaming Group, said that possible crowd control measures by the government aren’t a worry: “The reality is that visitation is down, so I think we have a way to go before we need to worry about bursting at the seams again.”