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Mark Regan

THE PROPERTY MARKET in Macau has pulled through a slowdown late last year to record robust activity, and indications are that the steady upward trend will continue.

Booming tourist figures, strong overseas investment and the continuing arrival of expatriates and mainlanders keen to buy or rent residential properties all bode well for developers and their partners in the construction sector.

These are not the only reasons for confidence. Residential prices in Macau are much lower than in Hong Kong or Singapore, while per capita incomes are similar.

Salaries are also rising fast - by 13 per cent on average last year compared with less than 2 per cent in Hong Kong.

Macau experienced an overall rate of economic growth of more than 17 per cent in the first half of this year, and its revenue from gaming is overtaking that of Las Vegas.

This boom is good news for Hong Kong-based property companies looking to share the spoils.

Market players are aware that residential prices in Macau are forecast to rise by about 10 per cent next year and that medium-term prospects look positive.

Property company Chinese Estates is developing about 3,000 high-end residential units totalling around 4 million sqft. The 800,000 sqft site is close to Macau International Airport and is bounded by park land and the South China Sea. Development will take place in four phases.

'We feel it's a great location and hope to finish the first phase by mid-2009,' investor relations manager Lau Ming-wai said. 'All being well we're looking at a launch and pre-sale towards the end of this year or early 2007.'

He said that there was a shortage of high-end residential apartments in Macau and that demand would increase, especially from the expat sector and incoming foreign companies.

Also, the planned Zhuhai-to-Hong Kong bridge would make Macau a more attractive home base for commuters.

However, the general shortage of local labour means that the company will have to recruit elsewhere, principally in Hong Kong.

'We expect that at its peak the project in Macau will require 2,400 personnel. Of these, around 600 are expected to be locals, 1,000 from Hong Kong and the remainder from the mainland,' Mr Lau said. Hongkong Land and Shun Tak Holdings recently announced the launch of One Central, a waterfront project combining high-end residential, hotel and retail facilities.

There will be seven residential blocks of flats with one to four bedrooms on a total site area of 200,000 sqft.

The project will also include a landmark tower featuring a six-star 210-room hotel and serviced apartments managed by the Mandarin Oriental Group.

The foundations have been completed and work on the superstructure will begin before the end of the year, with completion planned for late next year or early 2008.

Robert Wong Yau-chung, an executive director for residential property at Hongkong Land, said: 'We are very excited about One Central. It is a significant investment in a very promising market. In general, we are very positive about the outlook for the residential market in Macau.

'There is strong market affordability and many potential buyers are keen to trade up because of increasingly obsolete housing stock.' He said there should be many job opportunities for non-residents because of limited local manpower.

'Hong Kong is conveniently located and can provide all sorts of talent, ranging from construction workers to senior management staff,' Mr Wong said.



Full steam ahead