Centaline: Market set for stability and recovery this year

R Centaline Property predicts that the Macau property market is poised for a more stable trajectory in 2025, driven by renewed buyer interest and supportive government measures.

In a press conference last week, Stanley Poon, managing director at Centaline, noted that the combination of supportive policies and improving market conditions suggests a stabilizing property market, with the potential for price recovery and increased transaction volumes.

He urged potential buyers to remain vigilant for opportunities, especially as some homeowners may face continued financial pressures early in the year.

Centaline highlighted a significant rebound in Macau’s property market following the comprehensive withdrawal of measures initiated in April.

Jack Lei, principal regional sales director, reported a notable increase in the volume of transactions for industrial and commercial buildings. He noted that office transactions surged by nearly 60% year-on-year, with approximately 92 transactions expected for 2024.

The average price per square foot for offices is projected to be MOP3,940 in the Nape area and MOP5,300 in Nam Van, reflecting an overall decline of about 20% for the year.

In the industrial property sector, transaction volumes are anticipated to reach approximately 53, up 36% from the previous year. However, the average price for industrial buildings has dropped to MOP2,396 per square foot, a decrease of 22% compared to 2023.

Looking forward, the market faces challenges due to limited potential for interest rate cuts. Lei emphasized that property owners may need to maintain returns around 4% to attract buyers. He noted that the Nape District appears to be stabilizing, while the Nam Van area shows signs of recovery, albeit with low transaction volumes.

In comparison, the residential market showed mixed performance in 2024, with a significant decline in sales transactions in the first quarter, down 27.6% year-on-year. However, subsequent months showed signs of recovery, with improved market confidence and a narrowing decline in sales by June.

Government policies have played a crucial role in stabilizing the market, with more than 760 new policies introduced, including relaxed purchase restrictions and reduced down payment ratios. The government also implemented measures to reduce transaction taxes, contributing to a more favorable environment for buyers. Victoria Chan