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.

'Prices in Macau are about one-third of what they are in Hong Kong for comparable property,' he said. 'Many expect this to change quickly as the entire environment in Macau is evolving so rapidly and land available for development is so limited. Industry surveys indicate that an additional 90,000 foreign workers are needed by the end of 2010.'

Mr Sherman said as the market matured in Macau there had been a noticeable trend for fewer speculators and more long-term buy-to-let investors. He described Macau as a friendly investment environment and said residential property in the city was a 'long way off peaking'.

Deputy general manager of Colliers International (Macau), Johnny Lai, said it was difficult to compare Macau and Hong Kong property as he believed the quality on offer in Hong Kong was far superior. Mr Lai said international investors looking to buy property in Macau needed to ensure they chose a reputable developer. He said the Macau government was cautious about approving projects, which worked to control supply, but also created delays. 'In Macau things are loose in controls on developers, so if you are going to buy something you need to check the developer's track record. Some buyers have been promised completion in two to three years and it may take much longer for the project to be finished.'