04 Apr
2007
Prior to 4th April 2007, the "Investment
Immigration Policy" simply required the prospective
immigration applicant to purchase a $1.0m's value
of property in Macau and place $0.5m in bank as time
deposit account. Upon approval by the Government the
immigrant would get a Macau citizenship status in
due course.
However, in the annual Question and
Answer Session of the Legislative Council held on
3rd of April 2007, The Chief Executive Officer (CEO),
Mr Edmond Ho announced to call off investment immigration
application with immediate effect as one of the measures
to cool down the spiral raising property price. This
view is supported by Mr Ronald Cheung, Chief Executive
Officer of Midland Realty (Macau) Limited who commented
that this might be a good time for the market to digest
the price and thereby cooling down the market, and
creating a more orderly and healthy property market.
Mr Cheung said there were about 3,000
investment immigration applications last year, or
on average about just over 200 applications per month.
This is equivalent to about 10% of the number of transactions,
and therefore the changing government policy has little
or minimal practical effects on the market as a whole.
To some extent, the policy is fair and reasonable
in an attempt to combat the market and as a " feed
back" to the voice from residents for the fear no
affordable home in the market. Owing to the economic
performance is exceedingly good, most investors as
well as homeowners have optimistic view about the
market and would like to see the market grow steadily
rather than rapidly. So most people consider that
it is not a bad idea to "take a break" and let the
market self-adjust itself.
Presently, the market is somewhat
chaotic in that the asking price is far too high than
its reality because of the false hope of the vendors
may have. So the Government must do some thing about
it. Firstly, to pave the way for future economic growth;
and secondly, to show the Government is a caring or
listening government.
Apart from the market consolidate
effects, the policy may also has the implication of
raising the threshold amount and also education qualification
requirements so as to improve the quality of immigrant
to Macau should the policy re-opened in future.
In short, the changing policy is
rather sudden but it is by no means unusual practice
for the Government. It makes people think that the
Government did care for people concerns, and also
a good time for the market to consolidate for short
and medium terms growth. The new policy would boost
the confidence of home buyers as well as investor
to enter the market to fill the gap left out by the
then investment immigrants, so the price will not
go down because the market sentiment is still very
strong. Thus, it is anticipated that the market will
be developed in more steady and healthy manner.
