Macau’s
property market appears to have seen the worst of the Covid-19-related downturn,
and developers are seizing the opportunity to sell new properties. The global
low interest rate environment has brought buyers into the market, driving a rebound
in residential transactions.
According
to statistics released by Macau’s Financial Services Bureau in May, 677 residential
transactions were concluded during that month, an increase of 85 sales from April.
The average price per square metre of usable area was 103,758 patacas, relatively
unchanged from April.
According
to the data, there were 487 residential property transactions in Macau
Peninsula, 153 in Taipa and 37 in Coloane in May, an increase of 60, 16 and 9, respectively,
from April. The average price per square meter of usable area in Macau
Peninsula was 101,668 patacas – up 3.5% – in Taipa it was 104,974 patacas – down
6.8% – and in Coloane it was unchanged from April at 118,572 patacas.
According
to an analysis of buyers’ status, in May, there were 676 residential
transactions involving local natural persons, 563 – or 83.28% – of whom were
first-time buyers. On the day of purchase, there were 100 buyers who already
owned one unit, accounting for 14.79% of all purchasers, and 13 owned more than
one unit, accounting for 1.93%.
Since May, developers
have launched new properties in the Sai Van district, a relatively old area
that is close to schools, a factor that appeals to many parents. One developer
set prices at a level close to those in the secondary market, with small,
two-bedroom units selling for around 7 million patacas, and the average price
per square foot starting at 7,000 patacas – a level quite attractive compared with
prices set by other developers – which the market welcomed. Because the
developer launched only around 20 two- and three-bedroom units in the first
round, the original sales period was set for three days, but all units had been sold by the end
of the second day.
Two other
developers have been selling new properties larger than 1,000 square feet in the
Sai Van area, priced at more than 6,000 patacas and 8,000 per square feet, respectively,
offering large, two- and three-bedroom units larger than 1,300 square feet. Some
are located on high floors on the front side of the building, boasting views of
Nam Van Lake.
Buyers in a
certain market segment have always favoured luxury homes, and some have been finding
properties such as duplexes and villas with prices ranging from more than 10 million
to tens of billions of patacas. Developers in the same district have launched villas
that have attracted the attention of any buyers.
Another new property near the reservoir has attracted buyers by
requiring downpayments of only 10%. Developers
converted studio units into one- and two- bedroom units, and marketed
them in a promotion under which buyers who completed payment within 540 days
were offered a rebate of 24 months of “rent”. Buyers of larger units could
select a period of up to five years to complete payment. Thanks to the
low price threshold, more than 20 units were sold during the promotion period, most to first-home buyers
and to buyers selling their existing homes.
Due to a limited
supply of new buildings in the construction pipeline in the next two years,
developers are generally selling only dozens of residential units at a time and
are not rushing to cash out. This, coupled with various offers and price considerations,
will speed up sales.
Bela Vista Property
Services recommends that buyers who are interested buying property and taking
advantage of the current offers and scope for bargaining should ensure they
have sufficient downpayments and prepare to pay government stamp duty and
handling fees equivalent to 5% of property prices. By assessing property supply,
buyers can enter the market more quickly in order not to miss opportunities.
