Of the “9 + 2” cities in the Greater Bay Area, Macau and Hong Kong are both special administrative regions
In recent years, Macau has been determined to develop infrastructure and its transportation facilities have gradually improved. However, residential property prices in the area are still lower than Hong Kong’s, which is suitable for Hong Kong people’s own use or investment.
Macau is one of the regions with the lowest tax rates in the Greater Bay Area. In addition to the absence of foreign exchange controls, Macau has the status of a free port and an independent customs territory, so it attracts foreign capital inflows. Among them, the gaming industry is an important pillar of Macau’s economy, and it has led to the prosperity of tourism. According to data from the Macau Tourism Board, the number of inbound tourists to Macau reached more than 39.4 million last year, up 10.1% year-on-year. Among them, more than 36.3 million inbound visitors came from Greater China, and the number rose by 11.3% year-on-year; international visitors recorded only more than 3 million, down by 2.8% year-on-year. As for gaming revenue, Macau’s overall gaming revenue for 2019 was approximately $ 292.455 billion, down 3.4% year-on-year.
At the 20th anniversary of the return of Macau in December 2019, President Xi Jinping also attended the inaugural ceremony of the fifth government of the Macao SAR, which shows that the country attaches great importance to Macau.
Residential turnover fell by more than 20% year-on-year
The completion of infrastructure can often boost the investment climate. The opening of the Hong Kong-Zhuhai-Macao Bridge in 2018 will make it more convenient for Hong Kong people to travel to and from Macao by connecting Hong Kong by land. As for Macao to Zhuhai, customs clearance at Zhuhaiwanzai Port, which has been closed for nearly four years, is resumed this month. The Macau Inner Harbor Ferry Terminal restarts the route from Inner Harbor to Zhuhaiwanzai, and the number of passenger trains has also increased to facilitate local residents and tourists.
Since property prices in Macau still lag behind Hong Kong, and many people need to go to Macau to work or vacation, buying property in Macau can be used for investment or for own use.
Analyzing the performance of the local residential market, according to data from the Macau Finance Bureau, a total of 7,296 residential unit transactions were recorded in Macau from January to November last year. It is expected that the annual transaction will be no more than 7,800, with transaction volume falling by more than 20% year-on-year. In terms of property prices, the average saleable floor price of residential properties in Macau in 2019 was about $ 10,000, which was close to 2018. According to Central Plains Real Estate data, the bank ’s December Greater Bay Area index was 114.44 points, while the Macau index was 101.76 points in December, a month-on-month drop of 0.91%. Compared with December ’s 104.4 points last year, the Macau index fell by about 2.5% year-on-year.
The residential areas of Macao are roughly divided into Cotai, Oriental Pearl District and Dynasty. In recent years, large-scale new projects have been concentrated in Cotai District, including “Jinfeng · South Bank”, etc. The area also has the Lotus Bridge connecting Hengqin. In fact, Hengqin is also developing rapidly, so the area of Cotai has become the focus. As for the Oriental Pearl District adjacent to the entrance of the Hong Kong-Zhuhai-Macao Bridge, the prospects are also ideal. The luxury properties in the area include Grand Hyatt Bay, Haitianju, Haimingju and Universal World.
As for the specific residential sale price, you can refer to several new listings released in Macau in recent months. For example, the Jinfeng series located on the south of Cotai Avenue in Cotai. , The most flat price starts at more than $ 5.6 million. In the same location, Qingtianhui came to Hong Kong for sale earlier. The project provided 1,850 units, ranging from open-plan to 4 bedrooms, with the entrance price of $ 6 million and the price per square foot from about $ 8,500. In terms of second-hand transactions, recently recorded 10 low-rise rooms in Block B of Jinfeng · South Bank with an area of about 826 square feet and sold for about $ 6.8 million at a price of about $ 8,233. In addition, 1,246 square feet of 9 middle-level rooms in the same estate were sold at $ 9.8 million. Changing hands for about $ 7,865 per square foot.
Foreigners must pay an additional 10% tax on property purchases
Before Hong Kong people invest, they should pay attention to the local tax system and mortgage. Non-Macao residents can purchase 60% of the mortgages for less than $ 3.3 million, and only 40% to 50% of the mortgages can be made from $ 3.3 million to $ 8 million. The percentage of existing or uncompleted mortgages over $ 8 million is reduced to 30%. In addition, foreigners who purchase residential properties in Macao are required to pay an additional 10% tax, and the units purchased within one year are subject to an additional 20% special stamp duty.
Pan Zhiming, managing director of Central Plains Macau and Hengqin pointed out that Macau can attract Hong Kong people mainly because of its location close to Hong Kong; while the two places belong to the SAR, and the capital flow and trading are also more free, plus the opening of the Hong Kong-Zhuhai-Macao Bridge, also Can drive Hong Kong people to visit Australia. He pointed out that Macau’s overall property prices are lower than Hong Kong’s, with luxury homes ranging from $ 8,000 to $ 13,000 in gross floor area, while second-hand residential property prices are about $ 6,000 to $ 8,000, which is lower than Hong Kong. With the opening of the Hong Kong-Zhuhai-Macao Bridge, it will be easier for Hong Kong to travel to Macau, and more Hong Kong people are expected to invest in Macau.