Residential property prices up 7.5 percent last year

The average price of residential properties in Macau increased by 7.5 percent last year, the Statistics and Census Bureau announced, even as recent policies aimed at taming erratic market movements were introduced.

The significant rise, which brings the average price of residential units to MOP108,427, returns the property market back to its 2014 peak prior to the gaming slump.

Analyzed by location, the average price of residential units in the Macau peninsula (MOP101,914) and Coloane (MOP135,527) rose by 11.1 percent and 5.7 percent respectively, whereas those in Taipa (MOP112,391) dropped on average by 2.4 percent.

Most analysts believe that property prices will continue to see growth, buoyed by medium-term growth prospects in the SAR of about 5 percent per annum.

However, real estate firm Jones Lang LaSalle previously said that the local property market would face pressure this year due to slowing growth and various regulatory measures in the region’s property market.

JLL predicts that capital values of high- end residential properties will drop 5 to 10 percent, while rental values will remain stable. Capital values of mass-to-medium residential and retail properties could also drop by 5 percent.

The firm called on the government to relax the mortgage lending ratios for residents to accommodate homebuyers.

This week the International Monetary Fund said that although property prices were mostly flat in the second half of the year, the new government measures would ultimately reduce market risks. DB/LV