Courtesy Macau Business Posted: 5/27/2010 10:27:01 AM

Public tenders and the revitalisation of industrial land is the way forward for social homes

The government is poised to promote the provision of land by public tender and the revitalization of industrial buildings in a bid to increase the number of small and medium size housing units.
The Secretary for Transport and Public Works, Lau Si Io, says plans for implementing these measures have already been defined.
It is expected that an experimental total area of 30,000 square feet will be set aside for their construction.
Strict rules will be imposed to ensure that the original intentions of the plan are followed, says the Office of the Secretary for Transport and Public Works.
With this initiative Lau believes more than 500 economic homes can be built on one plot of land.
“After this measure is implemented, according to market reactions, we will study and analyse the results to deem whether or not to continue,” the office said.
As for the revitalization of industrial buildings, Lau said this  was part of the governing policies guidelines for this year.
The measure will first encompass cases where rebuilding will be done from scratch. The remaining cases where the revitalization of industrial buildings is requested will be studied later.
In the meantime, far, it has already received several requests to change the original purpose of some buildings, all of which pertain to singular properties.
At present, the government is also preparing measures to encourage and simplify the procedures to guide developers to build housing units of small and medium size.

http://www.macaubusiness.com/news/industrial-revolution/3051/

Courtesy Macau Business: Posted: 5/27/2010 10:41:08 AM

After announcing relatively healthy 2009 profit results, the Shun Tak Group has welcomed moves for more regulation of the property market, but only if the rules are given time to bed down

More regulation will be good for Macau’s housing market says the Shun Tak Group.
Group sales director Warren Leung Cheuk Hang says the market is self-disciplined and consistently healthy and should be given more time to reach maturity.
Meanwhile, one of Hong Kong’s major real estate agencies says that constraints imposed on speculation in the mainland market may lead to an influx of capital to buy homes in Macau.

Nine rules
Last month, the Hong Kong government announced “nine rules” to encourage disclosures by property developers in their sales brochures, including the display of a non-furnished showflat, minimum thresholds for first-price lists and clear disclosure of a property’s location.
It even threatened a maximum stamp duty tax if speculation spread to the cheaper apartments.
Shun Tak Holdings sales director, Warren Leung Cheuk Hang, says the company will comply with the Hong Kong guidelines, but noted that buyers from Hong Kong have learned their lesson and are better informed.
The most successful real estate salesperson in Hong Kong, who once worked for the powerful developer Cheung Kong, notes that the local market is in good health, even with little regulation.
“There have been no major complaints of misleading information supplied by agencies or real estate promoters. Transparency is good and, even without the legal obligation, developers often disclose all areas clearly in their catalogues,” says Leung.
He does however defend more regulation by the government provided that sufficient time is provided for the rules to take shape.
“Within three to eight years, I believe that [the housing market] is going to be, I will not say more tightly regulated, but more mature in terms of its supporting infrastructure,” he predicts.

A great treasure
Comparing Macau in 2010 with Hong Kong in the 1980s, he says a sign of maturity is the familiarity with mortgages, which is a present reality in the Macau market.
“Macau is actually a great treasure. Of all the apartments’ proprietors, 77 percent are free of mortgage and the ‘cash flow’ is huge. This explains why even projects due for completion in three years can sell quickly,” says Leung.
He forecasts a minimum rise of 10 percent in prices and an increase of 30 percent in transactions this year, while underscoring the rise in property values is a long-term trend and that “there is no bubble in the market”.

Brakes on speculation
And at a time when the mainland is putting the brakes on market speculation, Stanley Poon, director of Centaline (Macau), believes that investors will bring money to Macau and Hong Kong, looking for opportunities, though the difference may not be obvious since  non-Macau buyers are responsible for only 10 to 12 percent of all transactions.
Poon disagrees with the idea that some local buyers are only “professionals” at the call of capital from the mainland, saying locals have strong purchasing power.
The Hong Kong-headquartered agency recently opened a branch in Macau–with another to follow soon– and hopes to raise MOP80 million in commissions during 2010.Shun Tak will be the sales representative for the Sociedade de Turismo e Diversões de Macau (STDM) apartment building in front of Wynn Macau and Hotel Lisboa.
Details will be unveiled within a week or two and prices will be slightly below those of the luxury apartments at One Central Residences.

Less revenue, more profit

Shun Tak Holdings’ full year profits for 2009 amounted to HK$1.19 billion (MOP1.2 billion), excluding the revaluation surplus on investment properties and net gains on the sale of its share in the Mandarin Oriental hotel.
However, the company’s revenue fell from HK$4.47 billion (MOP4.52 billion) in 2008 to HK$3.33 billion (MOP3.36 billion) in 2009.
The outlook for the Westin resort was “challenging” and the volume of TurboJet passengers suffered a slide of 17 percent due to a slump in the tourist market.
With the economy recovering and business to expand, Shun Tak also highlighted the “sumptuous and contemporary” columbarium project in Taipa.
With completion scheduled for the second quarter of 2011, the company expects it to attract significant interest.

http://www.macaubusiness.com/news/house-rules/3054/

Property leasing procedure
1.consult property agency
2.sign provisional tenancy agreement by both flat owner and tenant; both parties pay agency fees equivalent to one month’s rent respectively
3.pay the bills of the leased flat, such as water and power
4.list and record all existing items in the leased flat
5.sign formal tenancy agreement, transfer keys and pay the remaining agency fees
 
Notes for tenant before leasing flat:
(1)Personal budget：set the highest rent affordable（note whether it includes management and other fees）．
(2)District selection：housing prices and rentals vary in different districts. Selection of residential district should be based on personal and family needs as well as affordability.
(3)Flat size and furniture requirement： compare gross area and usable area; examine flat layout, room size and room number; determine whether furniture and electric appliances are needed.
(4)Before the lease commences：generally speaking, flat owner offers free renovation period before the tenant moves in and the lease commences. The period is usually 3-5 days, depending on whether the flat already has renovation and furniture. The period for retail units is usually 2-3 weeks.
(5)Determine lease mode
A.Corporate—– tenancy agreement is signed between the company and the flat owner. The tenant is the company, of which the staff can live in the flat during the lease term.
B. Individual —–tenancy agreement is signed between the individual tenant and the flat owner
 
Notes for flat owner before leasing flat： 
 1.Personal budget：estimate the flat’s rental yield, which is equivalent to a year’s rent (12 months) divided by the market value of the flat.
2.Tenant type：it is very important to understand the background of the tenant. There are several types of tenants, including single, couple or family; local or foreign; professional or non-professional.
3.Lease with or without furniture and electric appliances：before leasing out the flat, determine whether the budget includes furniture and electric appliances. Details should be stated in the agreement to avoid unnecessary argument.
4.Lease commencement date：generally speaking, flat owner offers tenants rent-free periods  （usually a 3-5 days period charging no rent）before the tenant move in.
5.Lease mode：corporate lease usually involves less risks than individual lease. In case of rent arrears, it is more convenient to chase a company than an individual.

Notes during the leasing procedure：
Before the tenant pays deposit
*Before signing the agreement, tenant should confirm the flat owner’s identity by requesting to view related certificates such as the unit’s sales and purchase agreement and mortgage documents. After agreeing on the lease terms by both the flat owner and the tenant, the two parties will sign a provisional tenancy agreement with triplicate copies stating all the basic conditions. Tenant should pay flat owner a deposit equivalent to two months’ rent. This will be returned to the tenant in full amount, without interest, when the tenancy expires and the flat is returned to the owner. 
*The provisional tenancy agreement should state the responsible party for the management fee.
 
Before signing the formal tenancy agreement
*Flat owner and tenant should agree on the vacant procession delivery date. A formal tenancy agreement must be signed with triplicate copies before the key transferal. Generally speaking, tenant should pay flat owner a deposit equivalent to two months’ rent and advance rent equivalent to one month’s rent.
 
*After the formal tenancy agreement is signed, flat owner should transfer all keys of the flat to the tenant. Before receiving the keys, tenant should examine the flat, including the furniture and the electric appliances, and confirm it is the designated flat stated in the agreement. Tenant should notice the flat owner one month prior to moving out, pay all the bills of the flat (such as water and power) and return all the keys to the flat owner.
 
For property leasing, both the flat owner and tenant should, respectively, pay the agency service fees, which is equivalent to one month’s rent.
( 1 ) flat owner and tenant should pay half the agency fees when the tenant pays the despite at the agency, while the remaining half should be paid after the tenancy agreement is signed.
( 2 )Once the tenant has paid the deposit, the half agency fees paid by the flat owner and tenant are not refundable. 
 
Rent review during the leasing procedure
During the leasing procedure, there are two conditions that the rent could be reviewed. First, rent can be reviewed according to the related agreement by the two parties stated in the tenancy agreement.  Another agreement on the rent review could also be signed by the two parties after the tenancy agreement is signed. Second, flat owner could raise the rent if requested by the tenant to conduct certain work on the flat to compensate for the cost.

1. About Written Information of Land Register
Apply a Written Information of Land Register through the Macau Land Registry.

2. How much does a Written Information of Land Register cost?
MOP$10.

3. Who can apply for a Written Information of Land Register？
Anybody.

4. What does a Written Information of Land Register contain？
Mainly the subject property’s Indicators and Registers.

5. What information is shown by the Indicators?
Indicators mainly record the physical identification information of the subject property, such as whether it is on an urban or agricultural site, the parish it belongs to, the street name and street number it is located as well as its area, property record number and property value, etc. Indicators are the static information of the property.

6. What information is shown by Registers?
Registers refer to the record of every lawful truth or behaviour about the subject property, such as the ownerships and mortgage conditions. Registers are the dynamic information of the property.

7. Regulations on Property Transaction Notarization
What makes an effective property transaction registration?
Through the making of a letter of notarization.

8. Where can citizens make a notarization?
1).Through lawyers with a private notrio qualification in law firms
2).Any notarial office in Macau

9. How many notarial offices are there in Macau？
Three, namely the First Notarial Office of Macau（address：G/F, Santa Casa da Misericórdia, Largo do Senado, Macau）, the Second Notarial Office of Macau（address：1/F, Campo Public Administration Building, Macau） and the Islands Notarial Office of Macau（address: G/F, Kinglight Garden, Cotai）
Office hour：9 a.m. to 6 p.m., Monday to Friday
 
10. How to make an notarization in the Notarial Office of Macau？
1)．Make an appointment and submit documents；
2)．Sign an agreement and pay the agreement fee at the designated time.

11. Notes for appointment making and document submission：
1)．a copy of the identity certificate of both the property owner and buyer（married citizens should also submit a copy of the identity certificate of spouse and a statement of the asset system）；
2)．property registration certificate (no more then three months）；
3)．housing registry certificate from Finance Services Bureau (no more then three months）；
4)．other authorization letter or commercial registry；
5)．a statement of nationality, address and sales price, etc.

12. Notes for agreement signing and agreement fee payment：
1).both the property owner and buyer sign the agreement in front of a notrio
2).the agreement fee comprises the handling charge and stamp duty.

13. Handling Charge：
MOP10 per agreement；
Handling change is calculated on the following scale based on the property value：
（1） 0.5% of the first MOP500,000 or below;
（2） 0.4% of the following over MOP500,000 to MOP1 million;
（3） 0.3% of the following over MOP1 million to MOP2 million ;
（4） 0.2% of the following over MOP2 million to MOP5 million;
（5） 0.1% of the following MOP5 million and above.
(Note：the charges for every less than MOP1,000 in each part of the property value above are MOP5, MOP4, MOP3, MOP2, and MOP1 respectively)

14. Stamp Duty：
1)．MOP100 per agreement ；
2)．0.5% of property value.

15. How to value the property？
Calculation will be based on either the Finance Services Bureau’s property registry value or the sales price (the higher one will be adopted)
Example: Mr. Chan has bought a unit for MOP1,800,000, how much agreement fee does he need to pay?
Handling charge：
(MOP500,000 X0.5%)+(MOP500,000X0.4%)+(MOP800,000X0.3%)
=MOP2,500+MOP2,000+MOP2,400
=MOP6,900
Plus MOP100 for each agreement
Handling charge totals MOP7,000
Stamp duty:
MOP1,800,000X0.5%=MOP9,000
Plus MOP100 for each agreement, stamp duty totals MOP9,100.
Handling charge+stamp duty=MOP16,100

16. If Mr. Chan obtains a MOP1,200,000 mortgage bank loan, how much will be the payment?
Mortgage fee：
A mortgage agreement signed with a letter of notarization is required to make a property mortgage effective.
To show the agreement fee and the mortgage fee on the same agreement for a loan of MOP1,200,000：
(MOP500,000X0.5%)+(MOP500,000X0.4%)+(MOP200,000X0.3%)
=MOP2,500+ MOP 2,000+ MOP600
=MOP5,100

17. How to apply for a property registry?
Summit application and documents, including:
A.application form provided by the Macau Land Registry
B.obtain property certificate, such as a copy of the sales agreement;
C.receipt for paid stamp duty ;
D.other authorization letters;
E.mortgage certificate if a bank mortgage is involved.

18. How is the registration fee received?
According to every truths of the registration.

19.How long does it take to approve a property registry?
Generally, approval will be granted in five working days with complete submission of application documents.

*Source：《置業在澳門》.in the memory of the Association of Real Estate Sector of Macao’s 25th anniversary