06 Jun
2007
Locally, The North means the cross-border
town located in the northern most of the Macau peninsula,
beyond which is the mainland China. In general, The
North has been given the impression that it is the
poorest part of the Macau SAR where most of the immigrants
settle there. So the property price was in the low
end of the market spectrum, or around Hong Kong dollars
350,000 for a decent 2 bed flat just a few years ago
before the gaming rights were opened. In addition
to the blooming gaming industry which is the main
force behind the local economy growth, the Investment
Immigration Policy also boosted up the property price
to some extent as the requirements for investment
immigration amongst others were to purchase a property
worth one million. The property price in The North
met the budgets of most applicants well.
According to Mr Jimmy Yeung, District
Director of Sales of Midland Reality (Macau) Ltd.
that the market had been quite and the transaction
had been slow following the repeal of Investment Immigration
Policy by the Macau SAR with effect on 4th April 2007.
However, there have been signs of market recovery
largely due to the vendors are willing to accept less,
making the investment yields as high as 6%, which
is quite attractive for investors as there may be
capital growth as well in the long run. As a result
there have been increasing flats for leases in the
market suggesting investors may have entered this
used to be forgotten market.
Mr Yeung said that The North was
one of the most densely populated area or the main
supply for low price property area. However, in the
past the price was inflated partly due to the demand
from investment immigrants. Now the price level has
been back to the beginning of this year. If they are
reasonably priced, there would be demand for this
end-market properties such as Kam Hoi San, Hoi Pan
Garden, U Wa Garden¡Ketc as there have been continuously
inflows of overseas workers which create demand for
accommodation constantly. This market is attractive
to investors or companies who may use for staff quarters
or for leasing as the lump sum involved is small whilst
the return is much better to put money in bank deposit
account. Recently there has been a local investor
who acquired a 750 sqft flats for $0.83m and let for
$4,300 per month. The investment represents approx.
6% yield. Similar transactions are included below
to illustrate the point further.
n the past 2 months, there were two
extremes in the market noticeably there were investors,
who might have hold a large number of investment properties,
willing to cut price for 3%-15% with a view for quick
sale, but on the other hand, there were investors
who took the opportunity of buyer's market to acquire
cut price deals. There have been signs of market revival
since May this year and the prices have started from
moving horizontally. Although there is no indication
from the Government for the re-opening of the investment
policy, most investors take the optimistic view of
the property market and shop around in the market
for good bargains because of strong evidence of economy
growth.
We may find out more about the current
market condition by comparing the figures "before
and after" the repeal of Investment Policy released
by the Government. In terms of the volume of transactions
in April this year, although the figure dropped as
compared to March, it increased if we compare with
the same period of last year's which suggests the
market is still healthy. The number of transactions
in April was 1,973 compared to the same period of
last year's 1,038, equivalent to 90% increase. However
if compared to March this year 2,514, just dropped
by 22%. In terms of lump sum involved, in April was
$3.0 billion represents about 400% increase if compared
to last year's $700 million. However, it dropped by
about 20% if compared to $4.2 billion in March this
year.
|
Estates
|
Floor level
|
Floor area Sqft(g)
|
Unit rate $/sqft
|
Sold price $/m
|
Rent $/month
|
$/sqft
|
Approx.Yields (%)
|
|
Kam Hoi San Gdn
|
Mid- floor
|
750
|
1,106
|
0.83
|
4,300
|
5.7
|
6
|
|
Kam Hoi San Gdn
|
Low- floor
|
750
|
1,133
|
0.85
|
4,200
|
5.6
|
6
|
|
Hoi Pan Gdn
|
Mid- floor
|
800
|
1,125
|
0.90
|
4,500
|
5.6
|
6
|
|
U Wa Gdn
|
High- floor
|
780
|
1,128
|
0.88
|
4,000
|
5.1
|
5
|
|
Tong Wa Gdn
|
Low- floor
|
500
|
1,240
|
0.62
|
3,200
|
6.4
|
6
|
