The government’s recent decision to suspend the construction of five subsidised housing projects is of limited help to the struggling local property sector, the head of the Macau Real Estate Development Association, Peter Lok, has said in a Macao Daily News report.
Lok stated that while the government’s decision was “correct,” the business outlook had not improved, the vacancy rate of commercial properties had worsened and confidence in the market remained low.
The real estate representative said he hoped the government would heed industry calls to completely scrap market curbs. He pointed out that the removal of such regulations – originally introduced to combat speculation – would not inevitably lead to a hike in property prices, as demonstrated by Hong Kong, which removed all curbs late last month.
Last week, Lok had told local media that he felt restrictions on the market were “out of step,” noting that the supply of public housing in the city was greater than the demand.
[See more: Latest figures show just how far Macao’s property market has shrunk]
He also suggested that banks should also be given the power to change their loan-to-value ratios as they wish, rather than adhere to the current legislation which caps the ratio at 70 percent for residential properties.
Lok and the heads of other property associations have also urged the government to reinstate the residency investment program, which they claim will help revitalise the ailing market.
The government’s decision to suspend the five subsidised housing projects, which cover roughly 5,400 units, comes amid falling demand for such flats, following new regulations that reduced the upper monthly income limit for applicants.
“As we are not certain how long the current tepid response will continue, the government does not have any plans at the moment to implement regular applications for public housing,” media were told by the transport and public works secretary, Raimundo Arrais do Rosário.
