Inevitable. Macau’s average housing price dropped 1.17 pct Y-o-Y in February. Meanwhile, housing transactions continue to shrink. The MSAR CE recently conceded that housing prices remain at a high level.
The city’s average housing price showed a 1.17 per cent year-on-year dip in February, a rare yearly fall in surging housing costs in recent years as Macau saw a continued shrinkage in housing transactions.
The average housing price here in February was MOP89,352 (US$11,187) per square metre, an increase of 4.2 per cent compared to the previous month but a drop of nearly 1.2 per cent vis-a-vis the same period a year earlier, data released by the Financial Service Bureau (DSF) yesterday shows.
The city saw 313 housing transactions in February, down more than 30 per cent compared to a year earlier and 7 per cent less than the previous month.
Macau already experienced a softening in the growth of residential prices in the fourth quarter of last year, when the average price of flats decreased 5.2 per cent quarter-on-quarter to MOP94,788 per square metre of usable area. The average price of completed flats in the fourth quarter of last year decreased by 10 per cent quarter-on-quarter to MOP82,073 per square metre, according to official data.
The latest DSF data shows that off-plan sales here contracted in both the number of transactions and average price in February.
In the month, only 44 off-plan sales were recorded, a drop of 41 per cent compared to the 75 cases in the same month last year; the average price of an unfinished flat, with the most expensive located in NAPE and Aterros da Baía da Praia Grande on the Macau Peninsula, has dropped by 10.3 per cent year-on-year to 128,541 patacas in the month.
For completed flats, the official data noted a nearly 30 per cent year-on-year fall in the number of transactions in February, which totalled 269.
The average price of a finished flat in the month is 81,258 patacas per square metre, which is 3.8 per cent more than the same month a year before. The most expensive residence in this category is also located in NAPE and Aterros da Baía da Praia Grande, where the average price of a unit is 125,891 patacas per square metre.
After delivering his Policy Address on March 23, Chief Executive Fernando Chui Sai On told media that he reckoned that Macau housing prices were still at a high level.
However, the city’s leader said the administration was maintaining the status quo for the existing home price regulatory measures, a set of policies enacted since October 2012.
At the time, the local government tightened the loan-to-value ratios for home buyers, while extending the special stamp duty from homes to shops, offices and carparks.