Juliet Risdon
The Hong Kong-Zhuhai-Macau Bridge (HKZMB) is due to open for traffic later this year and has been the talk of the town for quite some time, especially among local investors. There is no doubt that an infrastructural project of this magnitude will have an impact on the local economy and real estate market. The only question is “How much impact it will actually have, and in which direction?”
Taking a broader perspective, we can observe that given Macau economy’s reliance on the tourism sector, the completion of the HKZMB would mean easier and faster flow of tourists and personnel, naturally boosting the general economy.
From a more market- specific perspective, the upcoming HKZMB is likely to have an equalising effect on the 3 markets, essentially merging them to a degree and bringing them closer to a broad average in terms of capital values and rents. For example, we can expect incoming tenants from Hong Kong looking to escape the stifling rents over there, and outgoing tenants to Zhuhai attracted by larger living spaces and cheaper rents. In this regard, the effect on the Macau local market might not be as pronounced as what we can expect in Hong Kong or Zhuhai.
We are seeing high expectations from investors, anticipating a dramatic increase in values. But in reality, only the pre-sales section of the market has been active, while the secondary market has been quite stagnant. We would like to advise caution against over-optimism or rash speculation for investors.
In the long run, we expect the bridge to have a generally positive impact on the local market.
Juliet Risdon is a Director of JML Property and a property investor.
Having been established in 1994, JML Property offers investment property & homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
www.JMLProperty.com
info@JMLProperty.com
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