Scoring system proposed to replace ‘highest bidder wins’ for public housing shops

The Housing Bureau (IH) has been conducting open tenders for the leasing of 23 public housing commercial units in Macau, including those in New Urban Zone A. Some have suggested a comprehensive scoring system to replace the “highest bidder wins” approach, along with the promotion of regular tenders and a dynamic rent adjustment mechanism, while authorities have indicated they will offer a three-month rent-free period.

The public tender process for leasing 23 public housing commercial units has been launched, featuring a six-month lease term with a three-month rent-free period, authorities announced. The initiative aims to enhance commercial and lifestyle amenities in public housing estates, with the bureau explaining that the rent-free period is intended to support tenants during the initial renovation phase and the customer-attraction transition period.

Notably, unless either party provides written notice of termination two months in advance, the lease will be automatically renewed. Whether the rent-free incentive will be extended in the future will depend on actual tender results.

On the sidelines of the relevant tendering process, some observers have noted that the three-month rent-free period is likely to elicit varying responses across different districts.

In Zone A, where population growth has been slow, bidding activity may be relatively subdued. Meanwhile, established communities such as Areia Preta, Mong Ha, and Seac Pai Van are expected to be more popular. Among these, the “annual bidding” system, high vacancy rates, and a lack of institutional flexibility are seen as key challenges.

In response to the ongoing tendering process, community advisory committee members have put forward various recommendations. Si Iat, a member of the North District Community Service Consultative Committee, suggested increasing the proportion of food and beverage outlets and optimizing bus stop layouts to facilitate resident travel.

Li Yongjian, vice convener of the Islands District Community Service Consultative Committee, recommended from a legal perspective that the system governing public housing commercial units be revised more quickly to accommodate needs such as trial operations and the entry of social enterprises.

Procedurally, he advocated for year-round application acceptance and regular bidding to increase turnover, while proposing that priority be given to essential daily-needs businesses such as supermarkets and pharmacies.

Separately, Wong Wang Wai, Vice Chairman of the Supervisory Board of the Macao New Chinese Youth Association, along with Li, also suggested providing incentives for youth entrepreneurship and senior service centers, and incorporating community suitability and youth trial entrepreneurship into the decision-making process.