Yesterday, for instance, the government released new data showing sales and purchases of real estate were up 38.1 per cent by volume and 55.4 per cent by value to 10.19 billion patacas in the first half. Residential transactions made up 63 per cent of the total and it is fair to assume speculative investors in the high-end market accounted for a good chunk of the turnover.

While Macau doesn't publish an official property price index, our first chart shows the average value of residential transactions and indicates that in the first half this hit a record 719,710 patacas, lifted in part by heavy activity in the luxury housing sector.

Other market segments are equally buoyant. Betting on a continued influx of 'shop-aholic' mainland tourists, retailers are filing into the enclave. Circle K and 7-Eleven are rushing to expand in a market that had no convenience store chains just a year ago. Hong Kong cosmetics retailers and supermarket chains have launched rapid expansion plans. So the premium on prime retail space is soaring.

How long will the boom last? It is a profound statement of the obvious but the answer is: as long as demand outpaces supply. Our second chart shows new building starts and completions in Macau since 1992. Note the amount of floor space coming to market in all sectors has been in a downward spiral for almost a decade. It remains essentially flat today.

But look at the uptick in new building starts since 2002. Casinos form much of this but they are not the end of the story. Buildings generally take about two years to construct thus the staggered gap between the two lines shows what is in the pipeline.

That fresh jolt of supply will hit the market over the next two years. Macau will then see the first substantial increase in new commercial and residential space since 1996 and this should go a long way in tempering now torrid demand and at least stabilise, if not deflate, prices.

So, of course, will more land. The government continues to reclaim land around the two outlying islands, most notably for a string of casinos and convention facilities on the Cotai Strip.

Las Vegas Sands Corp and Melco International Development have both expressed a desire to build residential properties on the site to enhance returns on their massive investments in entertainment properties there. But Macau officials this week said Cotai would be off-limits for residential projects.

Melco may have a loophole in that its plans call for time-share holiday condominiums and the Sands could follow suit with a similar tack.

But the biggest impact on real estate in Macau would likely arise from plans to develop Hengqin Island in neighbouring Zhuhai. Covering 67 square kilometres, Hengqin is triple the size of Macau. The massive island lies just 200 metres away from the territory and is connected via the underused Lotus Bridge which lands at Cotai.

Notable industry on the island includes a rock quarry. But Guangdong officials are talking of plans to develop Hengqin into a major tourist destination under the Pan Pearl River Delta scheme which brings together nine provinces plus Hong Kong and Macau in a loose economic co-operation.

With its cheap, near-virgin land and 76 km of coastline, Hengqin offers investors enticing prospects. The Sands group has already expressed interest in developing resort facilities there.

And who knows - if Macau doesn't want apartments on Cotai, perhaps Zhuhai authorities might be more welcoming at Hengqin.

Jake van der Kamp is on holiday