MacauLand offers investors in The Manhattan flats project a favourable lease-back programme
The Manhattan was the first luxury property offered in Macau and in the past nine months rent at the Taipa Island development has increased 15 per cent.
A lease-back programme with developer MacauLand Developments means investors who bought property from the group, are receiving a 5 per cent per annum yield.
MacauLand's associate Adam Sherman described the return as 'high for Macau' and said typical market yields were between 3 and 4 per cent. Under the scheme, MacauLand agreed to lease properties back from the buyer at an annual rent equivalent to 5 per cent of the property's purchase price for two years. The scheme was designed to enable investors to keep their flats before selling them at a higher price. Mr Sherman said limited supply of luxury property in Macau had put The Manhattan in an excellent position.
'Our first tenants moved in during the third quarter of last year and since then we have seen a huge influx of expatriates coming into the market and we have been leasing units more quickly than expected,' Mr Sherman said. 'In the overall market there are several luxury developments under construction and available for pre-sale, however these won't be ready for occupancy for another 18 months, so the rent in available developments is rising.'
Facilities at The Manhattan include a golf simulator, a yoga room, a pool, private function rooms, a sauna, spa treatment rooms, a clubhouse with a barbecue area and a gym. The apartments range from 1,600 to 2,300 sqft and a concierge service is 24 hours a day. Before The Manhattan opening last year, there were several free-standing villas in Macau considered luxury, but there were no large developments. The majority of people who bought property in The Manhattan were from Hong Kong and still hold the property. Mr Sherman said it was not surprising when looking at the price difference for luxury property between the two cities.