According to a recent announcement by the Lands, Public Works and Transport Bureau (DSSOPT), more than 30,000 residential apartments are currently under construction or planned for construction. Some property industry insiders believe that completing these apartments in five years – 6,000 per year - is appropriate and will not lead to a decrease in property prices. Others, however, believe that prices depend on the forthcoming population policy. Since construction projects like the Hong Kong-Zhuhai-Macao Bridge and the Light Railway System are slated for launch by the end of the year it is anticipated that the demand for migrant labour will increase, thus benefiting the leasing market.

However, Chong Sio Kin, President of the Macau General Association of Real Estate remarks that even though building plans are already approved by the authorities developers will wait and see how the economic situation unfolds before committing themselves to construction projects, and believes the economic downturn may delay some projects. It is likely, therefore, that not all of the 30,000 apartments will be put on the market in the next few years. The increasing supply of new apartments has an indirect impact on property prices, yet there are still many other factors affecting prices, such as population policy and population status. If the government revives the quality migrant admission scheme or Investment Immigration Policy, then property prices will have firm ground to stand on.

Centaline (Macau) Property Agency Executive Director Kwok Chiu Lung said the government’s conservative processing of construction project applications has slowed the output of residential apartments on the market. He estimates that the market will see the appearance of an average four or five thousand new apartments every year, which is within expectations and will not dramatically cool property prices. As the supply of residential apartments is growing, potential demand will increase accordingly. In fact, there are many potential middle-class buyers with strong purchasing power who are living in older districts who have put aside plans to buy a new home as property prices remain high. As the purchasing power of these potential buyers becomes stronger and their desire for a new home even greater, it is believed that they will be able to ‘digest’ the new apartments to be marketed.

In addition, construction projects related to the Hong Kong-Zhuhai-Macao Bridge and the Light Railway System, which are planned to kick off by the end of this year, will require a great amount of imported labour, leading to an increase in the number of imported workers. Apartment owners who can afford to make a long-term investment will wait for the right time to lease their properties.