Sluggish property market slows urban renewal, says Raymond Tam

With over 5,000 buildings in Macau exceeding 30 years of age and entering deterioration, legislator Wong Kit Cheng called accelerating urban renewal “a matter of urgency,” as authorities acknowledged that a sluggish market and pessimistic owner outlook are hindering progress, prompting exploration of tax incentives, fee reductions, and land premium adjustments.

Secretary for Transport and Public Works, Raymond Tam, provided at a Legislative Assembly Q&A session yesterday an update on urban renewal efforts, stating that there are currently approximately 1,700 permanent supportive housing units and about 2,800 temporary housing units available.

He remarked that “the government will proceed with caution in advancing this work.”

Tam noted, in response to lawmakers’ oral inquiries, that the government is in close consultation with the city’s urban renewal company to explore expanding the scope of use for temporary housing. “One idea is to amend the designation to allow entry into the private market for free trade,” he said, but stressed the need to carefully assess vacancy rates in Macau’s property market “to avoid causing excessive disruption.”

While expanding the scope of use remains a primary focus of the study, Tam added that substantive discussions on specific uses can only proceed “once the number of remaining units has been determined.”

The government rejected lawmakers’ claims that progress on exploring ways to better utilize temporary housing had been delayed, admitting that there was a discrepancy between the actual number of remaining units and initial projections. This discrepancy, the Secretary said, makes it all the more necessary to carefully assess market conditions and proceed with the relevant work in a prudent manner. Tam emphasized that the actual number of replacement units must first be determined before substantive discussions on expanding their use can take place.

Govt open to all measures

Macau is promoting neighborhood beautification through a dedicated task force, with key initiatives including pilot renovations of distinctive neighborhoods, refurbishment of waste collection facilities, and environmental improvements in the northern district.

Several lawmakers yesterday urged the authorities to study legislative amendments to resolve coordination issues, introduce incentive measures, and use neighborhood beautification as a transitional model to accelerate the redevelopment of old districts. Lawmaker Wong Kit Cheng cited Iao Hon Estate as an example, noting that although the city’s Urban Renewal Legal System has taken effect, discussions on the project have stalled for nearly 20 years due to ownership issues, with the primary obstacle being legal inconsistencies between the Urban Renewal Law and the Land Law.

Authorities responded that if the minimum ownership percentage required under the Urban Renewal Law is met, property owners may submit an application to amend the land grant, which does not affect procedures such as signing reconstruction agreements or necessary arbitration. The Secretary for Transport and Public Works noted that some cases have already entered these procedures.

However, Tam also admitted that the greatest challenge in promoting urban renewal currently lies in the sluggish market environment, with property owners holding a pessimistic outlook and showing low willingness to invest in redevelopment.

“Given the gloomy market outlook, property owners are reluctant to invest in redevelopment rashly,” he said, adding that the government does not rule out any measures, such as acquisitions by urban renewal companies, and noted that promoting projects through support mechanisms is a viable approach. In cases involving complex situations such as inheritance, acquisition may be more appropriate.

The government reminded property owners that while participating in redevelopment requires an initial investment, the value of their buildings will increase as a result, and the process itself can yield tangible returns.

Regarding the organizational structure for urban renewal, Tam noted that the work involves multiple areas including planning, land use, and urban revitalization, which cannot be handled independently by a single bureau or department. Accordingly, the Land and Urban Construction Bureau will oversee and coordinate these efforts.

According to the briefing, the city beautification and cleaning working group has reached a “consensus on the principles” for beautification efforts and is actively researching and promoting feasible solutions. Following full discussions, a majority of committee members believed efforts should not merely “add icing on the cake,” but should instead prioritize relatively underdeveloped areas – such as the northern district – to highlight the impact of beautification. The government emphasized that once specific projects are finalized, they will be reported to council members in a timely manner.

Public consultation for master plan review to be conducted

Tam stated that “the master plan is not set in stone,” revealing that authorities are proceeding in an orderly manner with revisions to the city’s master plan and aim to launch a public consultation in the second half of the year.

According to him, the government is launching a review of the city’s master plan to support the development of Macau’s four major infrastructure projects, adding that Chief Executive Sam Hou Fai has approved the amendments and expressed confidence that the review will be completed within the target timeframe.

Lawmakers raised concerns over demographic shifts, with official data showing that the birth rate dropped to 5.3 per thousand in 2024, with only 3,607 newborns, and is projected to fall further to 2,871 in 2025. With an aging rate of 14.6 percent, Macau now ranks among the regions with the lowest fertility rates globally. Lam Fat Iam pointed out that urban planning based on the premise of population growth is no longer appropriate.

In response, Tam emphasized that the government must always respond to social development and the needs of residents, committing to continuous and timely review and optimization. He said that the latest population projections from statistical departments will be taken into comprehensive consideration to make dynamic adjustments.

However, he noted that a comprehensive review and update of overall population policy requires extensive consultation with all sectors of society, and that relevant coordinated research efforts should only be initiated after sufficient social consensus has been reached. “We will carefully consider whether further action is necessary,” he said, stressing the need for timely inter-departmental coordination.