Macau (MNA) – The JLL Macau Managing Director Gregory Ku told Macau News Agency that although the property investment market was very active in 2017, the lack of available freehold land available for sale in Macau would probably slow down the market.
Mr. Ku underlined how last year four major record breaking property transactions with the involvement of JLL were registered in the Macau SAR, with a combined value of HK$11.1 billion (US$1.41 billion).
“Both hotels come with gaming facilities and the analysed unit rate of their guest rooms is over HK$10 million per key, based on their transacted prices,” Mr. Ku added.
The remaining two transactions involved land plots in the Taipa North District, namely, the sale of one land plot in Taipa for HK$1.04 billion and the HK$3.5 billion record breaking sale of two land plots in the same area.
“It’s a record price in Macau, roughly HK$7,500 in accommodation value or land price per square feet. […] We acted as an agent for this largest land transaction and were involved in the others as a consultant for valuation. ” he added.
According to the JLL Managing Director the active investment activity registered in 2017 “reflected local and overseas investors’ confidence about the outlook of Macau” with JLL believing investors will continue to look for real estate investment opportunities in the city as the city further improves its infrastructure, policies.
However Mr. Ku told MNA he “doubted” 2018 would see the same level of activity since the city doesn’t have enough active property stocks for sale, such as hotel casino hotels ore freehold land that could be up for sale in this year.
“The three land plots sold are freehold lands, meaning they cannot be reclaimed by the MSAR government, so they have 25 years for development. All developers prefer to invest in free whole land, which is rare in Macau, rather than leasehold land,” Mr. Ku told MNA.