According to a report published by the Macau division of real estate and investment management company Jones Lang LaSalle (JLL), the local property market reached its low-point during the first half of last year, having rebounded slightly in the second half with the launch of several new residential projects.
The summary of the local property market was presented in JLL’s “Macau Year-end Property Review 2016”, released yesterday during a press conference.
The total transaction volume of Macau’s residential market rebounded in 2016, noted the report, albeit remained at a relatively low level. Transactions were dominated by residential units worth less than MOP6 million which made up about 70 percent of the total residential sales.
During the second half of last year, the capital values for high-end and mass-to-medium residential properties rebounded by 14.6 percent and 12.4 percent year-on- year, and 7.8 percent and 5.3 percent year-on-year respectively in 2016 as a whole.
“Supported by the launch of several new residential projects Macau’s residential property market regained momentum with growth registered in both sales volume and value. The mass-to-medium residential market is expected to be supported by continued demand, however, the sell-through rate will likely slow down due to the increasing competition caused by the ongoing supply,” said Jeff Wong, Head of Residential at JLL Macau, according to the report.
Meanwhile, in the rental sector, the reduced number of expatriates in the MSAR coupled with extra supply from the residential completions of 2015 continued to exert pressure on the market, the report noted. Rental values for high-end and mass-to-medium residential properties registered negative growth of 9 percent and 7.6 percent year-on-year for the whole of 2016.
At the same time, the office market in Macau continued to be subdued last year due to weak sentiment and cost-saving measures adopted by some companies. The retail property market remained “quiet” with the number of transactions in the first three quarters of 2016 falling to a 10-year record low. DB
No Comments