Property chairman urges less gov’t intervention in housing market

[Photo; Ricaela Diputado]

The chairman of the Macau General Association of Real Estate, Ip Kin Wa, has called on the government to hold back from intervening in the current state of the city’s housing market and advocated for employing non-residents.

Ip told Shin Min Daily News that young people seeking employment are showing a decrease in drive to enter and solidify their place in the industry amid the continued downturn of the housing market.

The industry now consists of around 2,800 real estate agents, and it is a significant difference compared to the previously recorded number of 6,000.

With that being said, the chairman urged authorities to be more lenient with quotas for non-domestic workers and, at the same time, to hold accountable and reconsider applicants with criminal backgrounds or those who have only acquired a basic level of education.

According to the Financial Services Bureau’s most recent data, there were 384 transactions in total in January this year, an increase of more than 42% compared to the previous year, which recorded only 270.

Sales in the first month of this year decreased by 11.7% compared to the same period in 2019. The drop continued, with the rate in January falling to MOP 69,241.

Ip noted that Macau’s situation differs from that of its neighboring region of Hong Kong, stating that home prices there are expected to rebound by between 5% and 10% this year. He said the cause of the housing market decline is a lack of consumers and investors.

Last week, data from the Monetary Authority of Macao revealed that MOP837 billion in savings has accumulated in banks.

He noted that “There must be stability in the housing market to achieve economic stabilization and to prevent home prices from falling further.”

He stressed, “On the other hand, Macau’s industrial recovery seems to be uneven. Apart from a tourism rebound, the gaming industry is experiencing change, coupled with a trend of Macau vehicles heading north and pedestrian traffic drying up across restaurant and retail fronts.”

In addition, the chairman also highlighted the lack of government efforts to attract talent beyond Macau, noting that Hong Kong has already accepted 60% of talent applications.

Ip told the news outlet, “People have always worried that bringing in too much talent might compromise local jobs and welfare, but a larger population can boost the economy, create more businesses and jobs. There could be rules to ensure that imported talent does not receive local benefits such as cash handouts and pensions. This should alleviate public concerns.”

He also criticized the government’s regulations on short-term rentals. Currently, stays of 90 days or fewer must be provided through hotel accommodations.

While Hong Kong’s rental market typically sees returns of around 4%, Ip argued that Macau’s approach could weaken the local rental sector and limit residents’ ability to use property as a means of investment.

Ip further highlighted broader shortcomings in policy, stating that direct financial help is far more effective than offering services or goods in-kind.

To support this, he suggested that rather than funding new public housing projects, the government could help first-time buyers by subsidizing their interest payments, allowing younger residents to access interest-free home loans.

He pointed out that public housing developments are funded by taxpayers, yet only a small portion of the population benefits from them, which he described as fundamentally unfair.

“The situation is made worse if these units fail to sell. The government ends up covering the costs of maintenance, management and loan interest – all of which are ultimately paid for by the public,” Ip added.

According to Ip, excessive government involvement has led to high numbers of unsold properties in several developments.

These include the Macau New Neighborhood (MNN) in Hengqin, the Pearl Metropolitan housing exchange project, and small one-bedroom units on the market.

The MNN, a key initiative backed by the Macau government, is made up of 27 residential towers offering between 4,000 and 4,200 flats, all restricted to holders of Macau ID cards.

Pearl Metropolitan includes six residential blocks with 2,064 apartments. It was developed as a solution for buyers of the Pearl Horizon project, who were left without title deeds after developer Polytec Group had its land concession revoked in March 2019 for missing the 25-year construction deadline.

He concluded by saying, “If these homes stay on the market unsold for an extended period, the combined costs – including interest, administrative fees and property upkeep – could reach as high as MOP18 billion. That expense will ultimately fall on residents, amounting to roughly MOP30,000 per person.” Ricaela Diputado