Public housing applications decline sharply amid ‘oversupply’

The number of applications for public housing in Macau has seen a sharp decline over the past three application periods, according to government data.

This marks the first time that the number of applications has fallen short of the available housing units.

Between 2019 and 2024, the government launched three public housing application rounds, offering a total of more than 13,000 units.

For the first time, the number of available two- and three-bedroom units slightly exceeded the number of applications, marking a shift from previous years when demand far outpaced supply. The 2023 round, which opened from September 27, 2023, to March 27, 2024, provided 5,415 units but received only 6,562 applications.

After disqualifications, 5,076 applications were accepted, leaving 339 units unclaimed—a first in the city’s public housing history.

In contrast, the 2019 round saw intense competition, with 37,487 applications for 3,017 units. After disqualifying 1,722 submissions, 35,765 applications were accepted, with 45% from single-person households, 30% from families of three or more, and 25% from two-person households. At the time, there were 10 applicants for each unit.

By the 2021 round, applications for 5,254 units in Zone A dropped to 11,707, with 9,796 accepted after disqualifications.

Two-person households accounted for the largest share of applicants, followed by three-person families.

The latest round underscored this trend, with 6,562 applications for 5,415 units.

Currently, only the housing projects from 2019 have been completed. Projects from 2021 are expected to finish between November 2024 and August 2025, with the A3 lot leading the completion schedule. Meanwhile, the 2023 projects are slated for completion between September 2027 and January 2028, with B5 and B12 anticipated to be the first to finish.

Committee discusses replacement system amendments

The Public Housing Affairs Committee recently held its first regular meeting of 2025 to gather opinions and suggestions on public housing policies for the year.

During the meeting, members discussed proposed amendments to the economic housing ordinance’s replacement system, which would allow one-room flats to be exchanged for two-room flats.

Some members supported the initiative, believing it could encourage childbirth and help low-income families improve their living conditions.

As cited in a statement released by the Housing Bureau (IH), members emphasized the need for surveys and studies to assess societal demand before implementing the policy.

Others urged careful consideration of eligibility criteria, pricing, and restrictions to ensure the policy effectively targets those in need and allocates public resources fairly.

Additionally, members suggested evaluating the current economic climate, the supply of public and private housing, and upcoming housing projects to maintain a balance between the public and private housing markets.

Private housing market risks

Some real estate developers have expressed concerns about potential impacts on the private housing market amid the proposed amendments.

With property transactions already slowing, they urged the government to strike a balance between public and private housing development to ensure market stability and support a full economic recovery.

Developers noted that the high interest rate environment and slower-than-expected economic recovery have created uncertainty in the property market.

Average private housing prices have fallen by 30% from their peak, with some properties experiencing declines of 40% to 50%.

This downward trend, coupled with an uncertain market outlook, has led to a decrease in demand for public housing, as reflected in a significant drop in the latest round of public housing applications.

Residential rents on the rise in 2024

Macau’s average rents for shops, office units, and industrial units all saw a decline in 2024, with drops of 1.1%, 2.8%, and 0.1% respectively.

However, residential rents experienced a 3.9% increase, according to the latest data from the Statistics and Census Service (DSEC).

The statistics revealed that the average rents for shops in the districts of Areia Preta & Iao Hon (MOP467), Barca (MOP355), NATAP (MOP392), and Horta e Costa & Ouvidor Arriaga (MOP489) each experienced year-on-year declines ranging from 3.1% to 4.7%.

In contrast, shops in the ZAPE (MOP670) and NAPE & Aterros da Baía da Praia Grande (MOP612) areas saw modest increases of 0.2% and 0.1%, respectively.

esidential rents, on the other hand, saw significant gains. Lynzy Valles & Victoria Chan