Residential rent down, while commercial spaces up slightly
Average rent for those with an area between 50 and 99.9 square meters and for those with a floor area between 100 and 149.9 square meters is MOP128 and MOP118 respectively, both down by 0.8% quarter-to-quarter.
For non-residential units, the average rent per square meter of usable area for shops increased by 0.4% quarter-to-quarter to MOP490 in the second quarter, with rental prices for those in Baixa de Macau (MOP687) and NAPE & Aterros da Baía da Praia Grande (MOP626) rising by 6.7% and 0.6% respectively.
Previously, international realty agency JLL Macau called for the government to drop some of the existing market-cooling measures to assist with economic revival. The call was based on the assumption that in the second half of this year, real property prices in Macau would see an average drop of 5% from existing levels that were already 10% short of the historical high.
For JLL, many of these tough measures were formulated some 10 years ago and were no longer appropriate given that the “backdrop and the market have become so different.”
On the other hand, the average rent for shops in NATAP (MOP409) and Conselheiro Ferreira de Almeida (MOP349) dropped by 1.7% and 1.4% respectively.
The average rent per square meter of usable area for office units went down by 1.6% quarter-to-quarter to MOP305, while that for industrial units held steady at MOP122.
In comparison with the second quarter of 2022, the average rent for shops grew by 1.9%, while the average rent for residential units, office units and industrial units decreased by 5.8%, 4.4% and 0.8% respectively.
Centaline Property recently issued a statement noting that the demand for commercial rental spaces in Old Taipa is gradually rebounding, with rent prices recovering up to 80% of pre-Covid levels. With the current vacancy rate being less than 3%, the realtor observed that vacant shops located along streets such as Rua Correia da Silva and Rua dos Clérigos are now difficult to find. As such, businesses are now turning to the less busy streets in the district. LV
