Real estate transactions plunge

The value of purchases of building unit and parking space purchases in the first quarter of 2019 was MOP10.55 billion, down by 20.3% for building units and 25.5% for parking spaces quarter-to- quarter.

According to data issued by the Statistics and Census Service, a total of 1,850 building units and parking spaces were purchased and sold from January to March as per the stamp duty record.

The purchase and sale of residential units decreased by 377 quarter-to-quarter to 1,379 units, and the total value fell by 26.5% to MOP8.32 billion. During the same period, the number of existing residential units transacted dropped by 277 to 1,186, amounting to MOP6.44 billion, a 22.3% decrease.

The transaction volume of pre-sale residential units declined by 100 to 193 units quarter-to-quarter, and the transaction value reduced by 38.1% to MOP1.88 billion.

Meanwhile, the average price per square meter of usable area and the overall average price of residential units, decreased by 4.8% quarter-to-quarter to MOP102,576, with the average prices of those in the Macau Peninsula (MOP98,693), Taipa (MOP105,065) and Coloane (MOP126,822) falling by 1.2%, 8.4%, and 8% respectively.

Earlier this year, real estate firm Jones Lang LaSalle (JLL) predicted that local properties would face pressure in 2019 due to slower economic growth, noting that the capital values of mass to medium residential could drop by 5%. Centaline Property (Macau) forecasted that the number of transactions concerning first- hand house purchases would decrease to approximately 8,000.

In the first quarter of 2019 there were 1,799 real estate purchases and sale contracts signed, and the number of properties involved (1,886) represented a fall of 34.4% quarter- to-quarter.

During the first quarter of the year, 1,979 mortgage contracts were signed and the number of properties involved (3,085) dropped by 9.5%.

Regarding construction in the private sector, there were 14,572 residential units in the design stage, 7,394 under construction, and 258 under inspection at the end of the first quarter. LV