Real estate prices will continue to rise!

With the recovery of the gaming industry and the taking back of land plots by the government, house prices will skyrocket! There is a very positive correlation between the health of the gaming industry and the state of health of the real estate market. Gaming revenue began a downward slide in June 2014, however, its […]

With the recovery of the gaming industry and the taking back of land plots by the government, house prices will skyrocket!
There is a very positive correlation between the health of the gaming industry and the state of health of the real estate market.
Gaming revenue began a downward slide in June 2014, however, its reflection on real estate only began to become clear three months later, with prices continuing to rise until they reached a peak in August 2014, when they were 16.33 times those reached in the second quarter of 2003!
These 2003 prices will be used as a reference point for comparison throughout this article.
To get an idea of this rise, a house worth MOP1 million in Q2 2003, was worth around MOP16,325,371.21 on the market in August 2014!
Of course, we are working with average values.
The real estate market sank from there, following the gaming industry, and in January 2016 this price ratio was “only” 11.79 times!
From then on, the idea that prevailed in the gaming market was that the fall of the decline of the gaming industry was going to end.
The real estate market thus began to freak out.
Until June 2016, with the gaming industry’s declines getting ever closer to zero, the real estate market managed to reach a price ratio of 12.97 times!
In July 2016, when it was thought that decline of the gaming industry was finally going to end, real estate soon shot up to 15.77 times higher (than 2003), a sign that many people wanted to enter the market and that it was paying out well.
Gaming revenue then began to recover from August 2016 and the real estate market, with a correction in August, also began to recover, reaching a price ratio of 16.75 times in December 2016!
After that, a new correction was made, fueled by the effect caused by the government’s decision to take back undeveloped land, which created instability and some perplexity in the private market and, therefore, with investors.
Prices fell again, reaching a ratio of “only” 14.27 times in February 2017!
The double-digit rise in gaming income in February, again pulled back that ratio in March, which went up to 14.82 times!
What will the trend be from now on?
Prices will continue to rise until the gaming industry stabilizes, further fueled by the effect of the government reclaiming undeveloped land plots, which limits supply in the market.
Unless a cataclysm happens again in the gaming economy!

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