Macau home prices rise 50pc in a year, frustrating would-be buyers

Measures taken by the Macau government to curb soaring property prices have failed, leaving disgruntled home-seekers complaining about being priced out of the market.

"It is ridiculous that property is so expensive. It is impossible for young people to buy flats at these prices," said Ray Chan, who had hoped to buy a small flat but now doubts he can ever afford it.

Such despair is common in the gambling hub, where home prices have soared about 50 per cent in the past year, according to official data.

The explosive rise came despite the introduction of a special stamp duty in October last year, along with tighter mortgage conditions. Homeowners must now pay a special stamp duty of 20 per cent if they resell their flats within one year. Home loans were restricted to 50 per cent of the purchase price, from the previous 70 per cent, for flats costing more than 8 million patacas.

"Property prices are continuing to go up because there is a shortage of housing and land supply," said Jeff Wong, head of Macau residential services for property consultancy Jones Lang LaSalle. "At the same time, housing demand is strong due to rapid economic growth."

Data from the Land, Public Works and Transport Bureau show there are 8,830 flats under construction. But demand outstrips new supply and Joe Chan, assistant district manager at Midland, said only about 150 of the new flats were still available, with most pre-sold ahead of completion.

Government's figures show 11,314 flats were sold last year, while 8,873 were sold in the first nine months of this year.