Macau’s property market has been dealt a heavy blow on all fronts by the coronavirus outbreak, and its recovery will need to rely on the city’s beleaguered tourism and gaming industry.

Residential property transactions in the first quarter of the year were at the lowest levels since 2009, according to the SCMP. 

Some 1,016 homes were sold in the first three months of 2020, a 22% drop from 1,379 in the same period last year.

The average price of a home was 93,133 patacas (US$11,647) per square metre in March, a 7.5% drop from 100,636 patacas in January as a result of the coronavirus outbreak.

Commercial property transactions hit a record low of 50 in the first quarter, the lowest level since the return of Macau to Chinese rule in 1999. Previously, the lowest level was 80 recorded in the fourth quarter of 2008.

“The impact of the Covid-19 has hit all sectors of Macau’s property market,” said Philip Pang of Telok Real Estate Partners. 

“Transaction volumes are very low, and we are starting to see a rise in distress situations as property owners are selling at really low prices to cash out.”

There are very few non-local buyers of homes in Macau now, according to Thomas Lam, executive director at Knight Frank.

“When China launched the individual visit scheme and investment immigration programmes for Hong Kong and Macau after the Sars outbreak, Macau’s property market saw a huge surge in buyers from the mainland and Hong Kong,” he said.

“But these days, mainland Chinese and Hongkongers would rather participate in investor immigration programmes elsewhere than buy property in Macau. Macau’s property market is heavily reliant on the gambling industry now.”

Read the rest of the story @ SCMP.COM

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