Macao’s real estate market saw the sale of 238 residential properties in November, a decline of 5.9 percent when compared to the 253 units that changed hands in October. That’s according to the recent stamp duty data from the Finance Services Bureau.
When analysed by locality, Coloane experienced the sharpest drop, with its transactions falling by around 45 percent, from 38 flats in October to 21 flats in November. The peninsula also recorded a 4.4 percent fall after sales dipped from 181 units to 173 units.
By contrast, Taipa’s transactions grew from 34 properties to 44 properties, a jump of around 29 percent month-on-month.
November’s overall average residential property price per square metre didn’t fare much better, as the total – 69,311 patacas (US$8,676) – represented a month-on-month fall of 4.8 percent.
By island, the peninsula suffered the greatest decline, with its prices plummeting by 8.7 percent, from 72,629 patacas (US$9,091) in October to 66,303 patacas (US$8,299) in November. Similarly, Coloane’s rates dipped from 87,535 patacas (US$10,957) to 83,707 patacas (US$10,478), a decrease of 4.37 percent.
Taipa’s housing prices saw gains of 11.52 percent, rising from 63,802 patacas (US$7,986) to 71,155 patacas (US$8,907) during the two-month period.
[See more: Macao sees a rise in mortgage approvals and commercial real estate loans]
November’s sluggish results reflect the overall weak state of Macao’s property, which has been plagued by declining prices and low demand in recent times. This can also be seen in the Macau Economic Association’s residential property index, which has consistently received a sub-optimal score since its introduction earlier this year.
The current woes of the local real estate sector stands in sharp contrast to the boom period of the early 2010s that witnessed annual sales of more than 15,000 units and strong price increases.
To help revive the housing market, the SAR government dismantled property curbs last April. Although their removal temporarily reinvigorated the sector, it has since reverted back to its sluggish state.
Since then, the sector has been urging the authorities to do more, with the Macau General Association of Real Estate suggesting various tax and regulatory measures that could help renew interest in the market.
The SAR government has responded by stating that it will not charge stamp duty for eligible residents who make property purchases of 6 million patacas (US$751,000) or under.
Local realtors have responded positively to the stamp duty waiver, with Roy Ho, the director of Centaline (Macau) Property, telling local media that the “timely measure” was “very practical” and “helpful,” allowing property buyers to save 120,000 patacas (US$15,021).
Ho said that if the government had not introduced any relevant policies, the local property market would most definitely be in decline for the entirety of next year. He claimed that it would not just affect the confidence of homebuyers and property owners but also “social stability.”
