It is a sign of things to come in Macau’s residential property market. According to Gregory Ku Ka Ho, managing director at JLL Macau, the total number of residential property sales in Macau shrunk by 18.1 per cent year-on-year, indicating a “significant” contraction, reported Macao News.
Based on the December 2020 news, 6,184 residential property sales transactions were captured, along with 886 presale transactions. Ku had hoped for the total number of residential sales transactions to be around 6,400 in 2020.
Other findings also revealed that two-bedroom units in 20 to 30-year-old buildings were in huge demand with young, first-time buyers as they were eligible to apply for mortgages of up to 80 per cent to purchase a unit priced at no more than MOP 8 million (approx. US$1 million).
In the luxury residential property segment, there was a notable drop in prices. Case in point: a villa situated near Penha Hill was sold at 40 per cent lower than its listed price. Ku expects the market would take time to recover, and he expects sales in 2021 to remain stable.
Mark Wong Choi Si, director of valuation advisory services at JLL Macau, said that if the global pandemic can be contained and low-interest rates continue, then Macau’s property market could eventually recover. But the truth is, the city’s unemployment rate is forecasted to remain high and may dim the city’s outlook, not forgetting, that livelihood issues may balloon once the government’s anti-pandemic relief measures and subsidies become non-existent.
However, in an April 2021 Global Property Guide report about Macau’s housing market stabilisation, it was noted that house prices were up 1.25% during 2020. While its housing market slowed sharply in the past two years, due to slower economic growth in Mainland China, as well as the civil unrest in Hong Kong, and Covid-19 pandemic which adversely impacted Macau’s gaming, tourism, and property sectors, there’s a silver lining as the market shows signs of improvement. The average transaction price of residential units rose by 1.25% during 2020, up from the previous year’s 3.04% fall. Quarter-on-quarter, house prices rose slightly by 0.1% during the latest quarter.
For more property reads, click here.