Centaline Property: Worst for Property Market Over

Property markets all over the world have suffered a downturn in the wake of continuously bad new about the economy, and the property market in Macau has not gone unscathed. According to Centaline (Macau) Property Agency Executive Director Kwok Chiu Lung, property prices have fallen 50% this year, prompting the government to announce several new policies to help citizens buy a home. If no more bad news emerges from the US economy, the property market is likely to stabilise in the first half of next year, with property prices possibly rising again in the second half. He thinks it advisable for the government to seek ways to ensure that every citizen is able to avail him or herself once in his or her lifetime to the recently resumed 4% home buying interest rate subsidy.

He says that in response to the sluggish property market the government has launched several schemes to help people buy, which is good for the property market. There are signs that property transactions are gradually picking up. November volume increased 30% on that of October, which was the worst month. The number of property transactions has risen from 250 to 300 since early December.

While many investors have lost money on their property deals, most current purchases are made by homebuyers, while there are still potential buyers waiting for property prices to hit bottom. Kwok maintains prices are approaching the bottom, although they may not have reached it yet; nevertheless, the risk in buying property is now greatly reduced compared to when the market was at its peak. Now that property prices have fallen 50%, a further fall of 20%, even if likely, would not be as inviting a proposition. It is believed that homebuyers will purchase by taking advantage of the government’s favourable policies. Kwok believes that the worst of the property market downturn is over and says that it is now advisable for people to buy.