Realtor confident in gov’t support for real estate market

A recent social media rumor claims that the Macau government is working to rescue the local real estate market, to which realtor Centaline responded, affirming that such a move is inevitable.

Roy Ho, director of Centaline Macau and Zhuhai Hengqin Property, told the Times yesterday on the sidelines of a press conference that Macau’s rental market continues to rise, with rents increasing slightly at an annual growth rate of approximately 2% to 3%, indicating “healthy” market conditions.

“This slight rise in rents has made rental returns increasingly favorable, with the proportion growing rapidly,” he stated.

In contrast, he added, Macau’s property market is currently in decline, with property prices having dropped by over 10%.

When asked about the timeline for the Macau government to introduce policies aimed at stabilizing the property market, Ho noted that a series of measures were indeed launched in April of last year, with over a year and two months having passed since the full implementation of the “comprehensive relaxation measures” in the housing market.

He admitted that the future policy direction “is still uncertain,” but expressed confidence that the government will be open to implementing measures to stabilize the city’s property market.

According to Ho, since 2022, the Chinese government has implemented over 600 policies aimed at stabilizing the real estate market across the country.

Among these, support for Hong Kong’s development has shown a positive direction, including measures such as reducing stamp duty and increasing support for listings.

For example, he noted that recent real estate transactions by Jonathan Choi Koon-shum, the chairman of the Chinese General Chamber of Commerce in Hong Kong, further demonstrate the vitality of the local market.

The Hong Kong media reported that Choi recently purchased the entire floor of the Rykadan One commercial building in Wong Chuk Hang for HKD40 million, with a price per square foot of only HKD6,475.

“This underscores the Chinese government’s strong support for Hong Kong,” Ho stated. “Overall, Hong Kong’s real estate planning is relatively sound, with limited public housing supply and a reduction in the number of land plots being released.”

Ho further pointed out that although Macau’s current policies are relatively limited, he believes that favorable measures for the region will gradually emerge. With strong support from the Chinese government for Hong Kong, he is also optimistic that similar support for Macau will follow.

sales rebound in H2

Centaline, referencing the Financial Services Bureau (DSF), noted that the residential property market in Macau remained sluggish in the first half of the year, with approximately 1,341 transactions, representing a year-on-year decline of about 14%.

Average monthly transaction volumes were around 200 to 250 units. In April and May, transaction volumes were approximately 283 and 196 units, respectively, with an estimated decline to around 180 units in June.

The average property price reached a new low in over a decade, with an estimated average price per square meter at approximately HKD72,000, a decline of over 20% from HKD89,000 in the same period of 2024.

The realtor noted that the Policy Address released in April this year placed little emphasis on the real estate sector and did not introduce any direct support for the property market.

Consequently, most developers chose a wait-and-see approach, postponing project launches and focusing on promotional activities to clear existing inventory.

The overall market response was lackluster, with both residential transaction volumes and prices trending downward in the first half of the year.

However, expectations of potential interest rate cuts by the Federal Reserve in the second half of the year could alleviate market pessimism, potentially injecting momentum into the property market and driving monthly transaction volumes back to around 300 units.

According to Centaline, the launch of a luxury residential project – Lake YOHO – in Nam Van has positively impacted market sentiment in Macau. Following the launch, there was a surge in interest, with over 1,000 inquiries from potential buyers.

This heightened interest resulted in a significant number of transactions, leading to the rapid sale of the first batch of 50 units.