Open borders could ease housing shortage

Many might be tempted to live across the border when round the clock immigration clearance at Hengqin is approved, said Zhang Jin Hua

The introduction of round the clock immigration clearance at the Hengqin checkpoint “would be good for Macau residents”, because it would enable many to purchase a cheaper home across the border, the organiser of the 2011 Spring Real Estate Fair told Macau Daily Times.

According to Zhuhai Huashi Avertising chairman Zhang Jin Hua, many locals are already interested in buying a house in the Zhuhai area, as a second home or as a long-term investment.

With that in mind the Spring Real Estate Fair, which concludes at the Venetian tomorrow, is highlighting residential development projects from outside of the MSAR, especially in Zhuhai and Hengqin Island.

“We hope to use this platform to sell some properties in the Pearl River Delta,” Zhang said. On the sidelines of the opening ceremony of the three day event, he said around 9,000 people were expected to attend the fair.

The organiser believes buying a residential unit in the region remains a good investment. “It’s very easy to get a much cheaper and also much bigger property in Zhuhai than in Macau at this point,” he said.

But many more might be tempted to live across the border when the Central Government approves round the clock immigration clearance at the Hengqin checkpoint. Last November a Macau Government spokesperson, Alexis Tam Chon Weng said that approval could come as early as 2011.

Last February, the MSAR deputy to the National People’s Congress, Lao Ngai Leong, said border crossing hours between the Border Gate and Zhuhai could also be extended for two more hours after the expansion of the Gongbei border is completed in August.

Apart from easing the lack of affordable housing in the territory, these moves would also ‘boost the property market in Zhuhai’, Zhang said.

No bubble

The local real estate market is still far from being a bubble market, private investor Matthew Ossolinski said. However, he warned that prices are likely to keep on rising in the next few years.

“I wouldn’t buy a property nowadays in cities like Shanghai or Beijing but I would in Macau,” he admitted.

“As Cotai develops there will be more investor enthusiasm bringing money not only from Western investors but also from mainland China businessmen. That will go on at least for the next six or seven years,” Ossolinski said.

The main price hikes will be felt on properties close to Cotai, he added. “It’s clear that the centre of gravity will gradually shift from the Macau peninsula to Cotai and people are looking for investment opportunities with a long term outlook.”

Another opportunity, the US based investor suggested, could be the refurbishment of existing properties due to scarce land resources. “Just like in Hong Kong, the older Chinese buildings will eventually be torn down,” he explained

Outside investors are also eagerly waiting any news on the development of Hengqin Island. “There has been a lot of interest,” Ossolinski said.