Despite the influx of expatriates, recruited to work in Macau's growing portfolio of luxury hotels and casinos, the serviced apartment market remains small due to executives' lengthier job postings and cheaper property prices.
'Renting an apartment in Macau is not as expensive as Hong Kong. With the majority of expatriates signed on to work in Macau for at least a year, if not more, it makes more sense to rent an apartment without services,' explains Ronald Cheung, CEO of Midland Realty Macau.
'Those that come for a shorter period can stay in any of the hotels. That mid-point of three to six months, somewhere between short stay and long term stay, does not, however, seem to be too common.'
Indeed, developers and apartment operators in Macau are dealing with a very different type of expatriate tenant to Hong Kong; not the big housing budget of an investment banker who plans to spend much of his time in the office, but a couple or a family looking to make Macau their home for the next few years.
'Macau's rental market also offers more value for money. It is not expensive to rent a decent sized apartment, so many people tend to do that instead,' Cheung says.
Even units at Lot W, one of Macau's very few premium serviced apartment properties, situated in northwest Taipa, are big in terms of size. Each apartment is about 2,830 sqft and is designed around a comprehensive list of facilities that include a shopping centre, private membership club, school, post office, medical centre, 24-hour convenience store, supermarkets and a nursery, all within easy access.
MacauLand has also developed large family-style residences at The Manhattan, close to the Cotai Strip. As an incentive to buyers, the company sold the units with a leasing option, allowing owners to lease their properties back to MacauLand, which would in turn sublet the fully furnished flats to casinos and hotels, guaranteeing owners a 5 per cent yield over the course of two years.