Macau’s visitor numbers and economy are in a recovery phase, with market wealth gradually being unlocked and vacancy rates on prime streets in tourist districts approaching zero.
However, a top realtor noted that while residential areas are performing relatively less well, their prospects remain optimistic, noting instances of shops being leased for motorcycle rental operations.
In a press conference held yesterday, Centaline Property reviewed the 2025 property market and outlined its outlook for the year.
The company presented data showing robust activity in Macau’s commercial property market last year, with approximately 10 transactions valued at more than MOP50 million recorded in the central district, tourist areas, and around Rua do Cunha, including two transactions involving hotel properties and land plots.
Speaking to the media on the sidelines of the press conference, Roy Ho, director of Centaline Macau and Zhuhai Hengqin Property, addressed recent reports about old neighborhood storefronts being allocated for motorcycle rental parking.
He acknowledged that while such cases are currently uncommon, stating, “Although there are four or five instances, the overall number remains relatively small, possibly fewer than 10 or 20,” and emphasized that this trend has not yet become widespread.
The realtor projected that commercial property transactions last year totaled about 346 deals, with roughly 96 recorded in the fourth quarter alone. The outlook for the coming year is “positive,” with commercial properties in tourist areas such as Nam Van, NAPE, and Taipa expected to outperform other property categories.
The commercial property market is anticipated to rebound, showing increased transaction volume while maintaining stable prices, according to the realtor.
“Although visitor numbers have risen significantly in tourist areas, the performance of residential districts has been relatively weaker. However, with the support of current policies, the situation may not be as dire as imagined,” Ho said. He noted that a number of supportive measures have been introduced, including recent initiatives targeting commercial properties, entrepreneurship, and foreign brands, alongside a streamlined approval process aimed at strengthening the market’s recovery.
“I believe the outlook for residential areas remains optimistic, and there is no need for excessive pessimism,” he added.
Small-unit market tied to broader economic conditions
Meanwhile, the Policy Address announced that eligible Macau residents purchasing residential units priced below MOP6 million this year would be exempt from up to MOP120,000 in stamp duty, while the mortgage cap was raised from 70% to 80%. This initiative, described as the first property market stimulus measure in 16 years, prompted Ho to remark that “the market appears excited.” However, he noted that since the policies officially took effect on Jan. 1, transactions have been suppressed and have yet to show a timely rebound.
According to Ho, from January to November last year, the overall market was relatively subdued, with property prices edging lower. “Due to the lack of formal policies to drive the property market last year, transaction volume is estimated to have fallen by about 5%,” he said.
“From 2018 to 2024, property upgrades required substantial down payments and taxes, resulting in first-time buyers accounting for over 80% of transactions, while upgrade buyers remained relatively scarce,” he said. Looking ahead, recent policy changes have lowered the barriers for property upgrades, potentially doubling the volume of such transactions.
Ho added that previous market policies had suppressed purchasing power, particularly in the resale and luxury upgrade segments. With the new measures in place, he said the performance of the small-unit market will largely depend on broader economic conditions. “For resales, a 20% down payment is now sufficient, and the portion up to MOP6 million is tax-exempt, meaning the actual cost required may be just over 20%. This contrasts sharply with the previous requirement of more than 70%,” he said.
He added that this has become one of the most attractive options for home upgrades, especially in the current economic climate, where many buyers prefer to maintain liquidity and avoid large lump-sum payments. He expects transaction volumes for larger units in the upgrade market could even double this year.
In addition to last year’s moderation in the property market, Ho noted that transactions involving Macau’s duplexes and villas were “relatively scarce.” However, volumes rose sharply in November and December. He expressed optimism about a rebound in Macau’s high-end market, noting that luxury property prices in the city remain relatively low compared with those in Hong Kong, suggesting room for recovery.
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