Home buying sentiment expected to be subdued in Macau, after ‘golden week’ tourism arrivals plummet by 90 per cent
- Residential property transactions dropped 23 per cent year on year to 4,169 deals in the first eight months of the year, Financial Services Bureau says
- Buyers will become cautious after Macau fails to see a sharp rebound in tourist arrivals, gaming revenue during week-long holiday
Home buying sentiment in Macau, the world’s largest gaming hub, was expected to be subdued after tourist arrivals failed to meet expectations during the “golden week” holiday last week.
“People will become cautious in their home purchases after Macau failed to see a sharp rebound in tourist arrivals and gaming revenue during the golden week holiday,” said Gregory Ku, managing director at JLL Macau.
Macau started accepting tourism permit applications from mainland travellers on September 23, but its average daily tourist arrivals dropped by about 90 per cent year on year during the week-long holiday, according to the Macau Government Tourism Office.
As of the second quarter this year, the gaming sector and related industries employed 20.5 per cent of its working population, while hotels employed 7.6 per cent, according to data from JLL and the Statistics and Census Service.
“They will stay on the sidelines instead of making big investments, such as purchasing homes,” Ku said, adding that the Macau residential market was dominated by genuine local buyers after its government imposed special stamp duties on the purchase of second or more homes in 2018. The acquisition of a second residential property attracts an additional levy of 5 per cent, while third or subsequent properties attract a 10 per cent levy.