The value of residential real estate deals rose by one-third on a smaller volume of sales in what was a tumultuous year in real estate

There is no doubt last year was an intense period for Macau’s real estate sector, especially after the introduction of the special stamp duty on some residential transactions.

Preliminary estimates suggest it was one of the best years yet for the sector.

Ricacorp executive director Jane Liu estimates annual turnover for residential properties last year stood at about 17,000 transactions. Should that figure be confirmed when the official data is released later this year, it would represent a year-on-year decline of 5 percent but would be significantly above the figures recorded in 2009 or 2008, when 11,300 and 13,700 homes were sold. The record was set in 2007, when home transactions peaked at 21,600.

The most recent data from the Statistics and Census Service shows the number of residential transactions for the first 10 months of last year stood at about 15,600.

While fewer homes were sold last year, their average value was higher. Ms Liu estimates the value of residential transactions reached MOP60 billion (US$7.5 billion) last year. That would set a new record and an increase of about 30 percent over 2010, when the all-time high was set. The value of home sales until last October stood at MOP54.3 billion.

Home prices have also risen in the past 12 months. Ms Liu estimates the average transaction price per square foot for residential units ended up at MOP3,822 a square foot (about MOP41,125 a square metre), a 23 percent increase over 2010.

In November, the average price of homes sold fell by 8 percent month-on-month to MOP38,271 a square metre, according to the latest figures from the Financial Services Bureau.

Tricky conditions

Jones Lang LaSalle Macau’s head of residential property Jeff Wong says the market performed far better in the first half than the second, when the
government introduced a special stamp duty on residential unit transactions to curb speculation.

This year, he is less certain of how the market will perform, predicting Macau will feel the impact of the economic crisis in Europe.

“There will be uncertainties,” Mr Wong says. But he sees a strong market and an increasing number of expats boosting property rentals.

The number of sales may, however, be on the low side. “Most buyers are end-users and not many people are confident in the outlook of the economy,” Mr Wong says.

But for Midland Macau chief executive officer Ronald Cheong Yat Fai, next year the property market will be saturated. “Property prices will be stagnant,” he says, adding that if anything prices could drop slightly between 10 percent and 15 percent in the first half of this year. The second half, Mr Cheong says, will depend on the overall sentiment of the market.

Several developments are moving towards sale. These include Nova Park in Taipa, M Residencies on the peninsula and the new phase of One Oasis Cotai South in Coloane, all of which are under construction.

Although the government had promised to introduce a bill to legislate the sale of unfinished properties by the end of December, the Legislative Assembly is yet to receive a draft proposal.

The government’s own data shows more than 3,300 residential units are under construction or have been given the go-ahead by the government.

——————————————————————

Skyline voted one of the world’s best

Macau’s skyline is among the best in the world, according to Emporis, an online database of properties worldwide. The territory is positioned at number 20 on a list headed by Hong Kong and followed by New York at number two.

Emporis ranks cities by the visual impact of their skylines. The total points for each city are calculated based on the number of completed buildings with at least 12 floors registered in the Emporis database. Each building is assigned points based on its floor count.

According to Emporis, Macau has 564 high-rise buildings.

The online database says there are 29 skyscrapers in the territory, which is to say buildings at least 100 metres high or with at least 40 floors, putting Macau in spot 56 worldwide.

Hong Kong is the leader in this category, with a total of 1,221 skyscrapers.