Realtor confident in shop transactions, prices
A regional realty agency expressed confidence in the number of transactions and pricing of shops within the Greater Bay Area (GBA) in the second quarter of the year, at a press conference yesterday.
The resumption of normal travel within the GBA has boosted first-quarter purchase prices and rentals within the area, Centaline Property pointed out. With further relaxation of Covid-19 restrictions and resumption of normalcy, the second quarter will even see higher prices, the realtor added.
The agency expects that the number of transactions and pricing of GBA shops will rise by 20% and 10% on average respectively, signaling “full prosperity”.
Citing data that shows escalating tourist arrivals, spending, tourism price index and gross gambling revenue (GGR), Roy Ho, senior director of the realtor’s Macau and Hengqin areas, pointed out that many shop space owners in Macau have decided to lease their space instead of sell, after witnessing the momentum following the return to normal commercial conditions.
According to Ho, this change of mentality caused a fall in supply and pushed prices up. Foreseeing the second quarter, the realtor executive predicts only a 20% increase in the number of transactions due to the lack of supply.
He added that both local and external investors are eyeing local shop spaces.
On lease, Jack Lei, senior regional sales director for industrial and retail properties of the agency, recapped that in the first quarter, Macau has logged 52% more concluded shop lease deals year-over-year, reaching 365 transactions.
Of these cases, 14 saw monthly rent surpassing HKD200,000 per month and two exceeding HKD1 million per month. A single building at the Largo do São Domingos was rented for HKD2 million per month.
Rentals at tourism and casino districts, meanwhile, recorded rises ranging between 75% and 178% on average, with some of them rising by three to four fold. Despite the rise, average rents in tourism and casino districts have seen falls of 27% and 32% respectively from pre-Covid prices.
Rentals in these districts are expected to further rise for 15-20%, considering several upcoming holidays. Rentals in livelihood districts, however, will be relatively stable as local residents are expected to travel outside Macau.
