Realtors attribute transaction increase to new policy
Jacky Shek (right)
Centaline Property recorded an increase in its real estate sales during the second quarter of this year, posting an increase in its transactions in May.
Due to the policy of tightening mortgage lending conditions for both non-first-time resident buyers and non-resident buyers, who had either purchased a residential property, or entered into pre-purchasing an unfinished flat, the firm saw a significant increase in buyers purchasing properties before the policy came into effect.
The firm recorded the highest transactions of the second quarter in over four years.
According to government figures, there were 3,542 transactions in the second quarter of 2017. Centaline Property attributed the increase to the new MSAR policy in May.
In May, pre-purchasing of flats for the firm hit a record of 535, a figure that was triple the number of pre-purchases in April.
Compared with the fourth quarter of 2016, the real estate firm saw an expansion in buyers’ purchasing power, as there were new apartment projects that were launched. However, sales in the first quarter of 2017 dropped.
Until mid-July, the real estate market remains stable and Centaline Property is expecting the situation to be maintained until the third quarter.
The company believes that rent law, which suggests that rent contracts should start from three years, will reduce residents’ desire to buy apartments, and sales of transaction might decrease again. Thus, real estate agencies will face a challenge in third quarter.
Speaking on the sidelines of yesterday’s press conference, Jacky Shek, senior director of Centaline Property, noted that the real estate market in Macau is healthy, adding that the Hong Kong-Zhuhai-Macau Bridge would bring a positive effect to Macau’s overall economy.
Questioned whether non-local residents in Macau affect its lease market, Shek said, “although there are many non-local workers, most live in Zhuhai. [So] only a small number of them, such as executives, might rent in Macau – Taipa, more precisely.”
In terms of office lease prices, Shek affirmed that Macau’s standard price for rent is inexpensive compared to Hong Kong’s rent prices.
“Prices of Hong Kong offices grow really fast. Compared to Hong Kong, Macau is too cheap [and] these two places have no reasons to be different [in their lease prices].”
Meanwhile, commercial property sales in the second quarter reached 502 transactions, a 30 percent year-on-year increase – many of which were properties in Hengqin.
The firm also noted that prices for offices in industrial buildings remain relatively low, adding that the market is not showing any signs of a possible price increase.
