Real estate market to experience a rebound

As Macau’s inoculation rate increases, the local property market will obviously be stimulated, the Centaline (Macau) Property Agency Ltd predicted in its forecast for rent and sale property markets at a briefing yesterday.
Given the fact that the Covid-19 situation in Guangdong (GD) province has largely subsided, the local tourism industry is expected to soon experience a rebound in the third quarter — which will, in turn, boost the leasing market.
Regarding the leasing sector, the transaction volumes for merchant stores continue strong, with shops with large floor-areas in Taipa being most pronounced.
Around the May Golden Week, a string of leases were signed for first-tier shops at traditional tourist spots such as Ruins of Saint Paul, Rua de S. Domingos, and others. The rents of these shops were lowered by around 30% to 50% when compared to the pre-pandemic era.
There were six transactions of shops in casino areas, with their rents down 50% on average.
The agency also saw a noticeable improvement in the housing property in the second quarter of this year. The number of property viewings in the market arranged through the agency increased 50% compared to the previous quarter.
Coupled with other boosting factors such as mortgage discounts offered by local banks, the transaction volumes of Macau’s housing fared well, registering 592 in April and 677 in May. However, the market was hindered by the resurgence of coronavirus in GD in June, reaching only 500 transactions, which fell short of the agency’s earlier projection of over 1,000 transactions for the month.
Overall, around 1,800 transactions in housing were made in the second quarter.
In terms of property prices, the average housing price was MOP 6,700 per square foot. This number is still 5.6% lower than the agency’s previous forecast of MOP 7,100, or the average levels in 2019.
Centaline expects that the improvement in the tourism industry will result in advancement growth in the housing market. However, if the Covid-19 continues to overshadow the region, the city’s housing transactions will remain at a low level.
The trading volume for apartments with a value below MOP8 million has not yet been affected. With a price range considered to be affordable for young first-time buyers, it has been a bright spot in the market.
However, large housing units have registered fewer transactions during the period as consumers have been more inclined to save as much money as possible during the pandemic.
Despite that, the agency expects the transaction rate of larger apartments is about to bottom out and rebound in the next one or two years, considering they are still more favored by buyers in the long term, whilst taking into account the factors of lighting, practicality and landscape.