27 Feb
2007
Some 2 weeks ago, HSBC suddenly
announced to cut their mortgage rate to P- 2.88% (ie
4.87%) in an attempt to win back the market share
of the mortgage market. Since then many Hong Kong
banks have joined the mortgage rate cut war, noticeably,
Bank of China, Hang Seng , Bank of East Asia, Wing
Lung, DBS. It is predicted that some of the aggressive
banks in Macau would cut their mortgage rates should
they wish to win a bigger piece of cake in the mortgage
market. If this is the case that would be a great
news for the Macau property market, which has the
effects of strengthening the market sentiment and
luring both the home buyers and investors to enter
the market swiftly.
According to Mr Jimmy Yeung, District
Director of Midland Realty (Macau) Ltd, the market
has been going strong and strong following last year's
good sale due to the ever raising economic growth,
end of raising interest rate cycle, blooming stock
market, raising Gaming taxˇK etc. leading certain home
owners as well as developers to believe that residential
properties would go up in prices in the light of declining
interest rate in future. In absence of many choice
for new developments, some investors even have started
to look around for quality second hand properties.
Apparently, this temporarily shortage of supply is
largely because of the unwillingness of the developers
to release their developments in any large scale.
With a few more developments going
to be released in the 2nd quarter of this year. The
volume of transactions will exceed last year's. Mr
Yeung reiterated that in a blooming economy coupled
with mortgage rate cut, the market sentiment should
be good and the property price would gone up eventually.
Some property owner even withdrew from the market
and waiting for better opportunity before putting
their property on the market for sale.
In general, price for properties
in Central or Nam Van area is about $22,00, NAPE is
$1500-1900, brand new property in Pearl Oriental (or
North district) $2,300- 2,600 whereas Horta E Costa
area is $1,800. In Taipa, quality flat is $1800-3000,
and second hand market is $1300-1500. It is interesting
to note that the accommodation value (AV) for most
land price is over $1,400/sqft. In other words, bread
is not much expensive than flour!
By the completion of Cotai City
towards the end of this year, there would have been
considerable change in property market in that many
well known estates would have increased in prices.
Lastly, Mr Yeung said " Given there have been many
good news, there is no reason that the market would
not go up."
