Property slump prompts industry to push for million-population goal via student stay policy

[Photo: Renato Marques]

Facing a simultaneous decline in both property transaction volume and prices in April, some real estate industry figures have proposed that the government seriously consider a policy allowing university students to remain in Macau, setting the target of “increasing the population to one million” as a medium- to long-term objective.

Notably, the government had already initiated the implementation of its talent introduction program in 2024, under which outstanding graduates in designated academic fields with a cumulative grade point average of 3.6 or above would be eligible to remain in Macau, thereby supporting the development of the city’s priority industries.

The real estate sector has observed that the government’s recently introduced property measures – which include a stamp duty exemption on the first MOP6 million of a property’s value and an increase in the maximum loan-to-value ratio to 80% – generated only a short-lived, modest recovery in the property market.

The industry further noted that adverse macroeconomic conditions and persistently weak market confidence have since prevailed, leading to a decline in property prices to MOP68,000 per square meter in April, the lowest level recorded this year, while transaction volumes concurrently fell to 338 cases – a clear indication of simultaneous declines in both prices and transaction volume.

Speaking to the media on the sidelines of his association’s anniversary reception, Ung Choi Kun, president of the Association of Property Agents and Realty Developers of Macau, proposed three recommendations for the authorities.

He urged the government to establish a reasonable population growth target, advocating that “increasing the population to one million” be set as a medium- to long-term objective in order to optimize the Macau-Hengqin integration development framework.

Ung observed that while traditional tourist districts and major hotel resorts are teeming with visitors, the city’s older districts remain conspicuously quiet. He believes that achieving a population of 1 million is a key solution to this imbalance.

His specific recommendations include the effective optimization of talent introduction policies, with serious consideration given to allowing university students to remain in Macau after graduation, as well as the continued improvement and acceleration of investment residency policies, with timely adjustments as circumstances evolve.

He also called for the formulation of clear and transparent investment criteria, prioritizing high-quality investors capable of creating employment opportunities, upgrading industries, supporting Macau’s economic diversification, and contributing to public revenue – all aimed at promoting high-quality population development in Macau.

To achieve comprehensive urban upgrading and balanced development across all districts, the government should shift from piecemeal “point-based renewal” to comprehensive “district revitalization,” fully assessing the carrying capacity of old and new districts as well as residential and tourist areas, Ung said.

He also called for new tax incentives, land premium reductions, and registration fee waivers to encourage greater private sector participation in urban renewal.