Hengqin’s Cultural and Creative Zone
Macau’s property market experienced a significant rebound in the second quarter of 2024 after the lifting of purchase and sale restrictions, according to a recent report by realtor Centaline.
The overall vacancy rate rose from 10.3% in the first quarter to 12.4% in the second quarter, mainly due to the increased adoption of remote work during the pandemic.
Residential transactions were dominated by first-hand properties, with developers offering 20% to 30% discounts on new developments to attract buyers. The average price per square foot fell to around MOP7,000, down 10% year-over-year.
The luxury housing market also saw an increase in transactions, with the number expected to double in the second half of the year compared to the same period last year.
The commercial property market saw a rise in transactions, with shops in tourist areas – mainly in the Taipa Village.
Buyers were primarily food and beverage vendors, taking advantage of the continued recovery of inbound tourism in these high footfall areas. However, the industrial building market is expected to face downward pressure on prices due to declining demand.
Back in April, 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.
Looking ahead, developers expect to continue offering new developments at attractive prices in the second half of the year, with monthly residential transactions estimated to remain between 350 and 450 in the third quarter. The property market in Zhuhai is also gradually recovering, with the city introducing measures such as lowering the down payment ratio and canceling the lower limit on housing loan interest rates.
In the mainland, Hengqin’s Cultural and Creative Zone was the most popular area, with over 700 transactions – a 1,308% year-on-year increase. The central business district also remained in high demand, accounting for 28% of total transactions.
Macau buyers made up the majority at 39%, followed by local Zhuhai buyers at 28%. Buyers from outside the province accounted for 23%, as Hengqin’s rapid development and eased purchasing restrictions attracted more outside investment.
Looking ahead, 11 new projects are expected to launch in the second half of the year, providing over 1.3 million square meters of new supply across commercial, office, residential and cultural sectors. Nadia Shaw
No Comments