The real estate sector in Macao does not appear to be benefitting from the removal of market restrictions in April, according to stamp duty data from the Finance Bureau. The numbers show that between July and August, residential property sales dropped 43 percent, from 356 transactions to just 200.
All three regions of Macao saw their transaction numbers decrease in August, with the peninsula’s sales totalling 150, a drop of almost 39 percent month-on-month. Taipa, meanwhile, had a total of 41 sales, a dip of nearly 56 percent. Coloane’s transaction numbers fell to just 9, representing a dive of 50 percent.
The residential property price per square metre was similarly dismal, decreasing by almost 15 percent, from 93,374 patacas in July to 79,568 patacas in August. This figure marks the lowest level since June 2016, which saw a price of 78,416 patacas.
By area, the peninsula’s average property price in August fell by 14.5 percent month-on-month, to 77,565 patacas. Prices in Taipa plummeted by 18 percent to 82,996 patacas, while the figure for Coloane grew – but only by 0.65 percent, totalling 87,453 patacas.
[See more: Macao’s residential property transactions and average prices fall again]
Macao Daily News cites some in the sector who believe that the downturn was caused by owners and buyers waiting for the US to lower its interest rates.
Moreover, they point to the fact that August has traditionally been a lacklustre period for the sector, as many residents head overseas to spend their summer holiday.
But while some remain hopeful that there will be a slight improvement in the fourth quarter, other pundits argue that it would require the US to cut its interest rate by more than 1 percent, and the economic forecast to improve, before Macao’s property market can rebound.
Despite the lifting of property curbs, Macao’s real estate market has struggled to boost its sales and prices over the last several months. This has stoked fears that Macao is in a similar predicament as neighbouring Hong Kong, where the property sector has been in a slump since the removal of restrictions in February.
