Ponto Final. By Andre Vinagre. 20 January 2023.
Suzanne Watkinson and Terence Lo of Ambiente Properties give their views on the future of the residential rental market in Macau. See more …
Translation from Portuguese
Housing rents will increase in the coming months. For example, the rent for a one-bedroom apartment renting HKD9,000 – HKD10,000 could rise to HKD15,000 by the summer. The forecast is by Suzanne Watkinson and Terence Lo, responsible for the Ambiente Properties agency, who, at PONTO FINAL warned that “negotiations with landlords are going to become more difficult”.
In the coming months some residential rents will increase, by up to 50%. At PONTO FINAL, Suzanne Watkinson, Ambiente’s managing director and Terence Lo, business development manager outlined a difficult future for home renters in Macau.
The two indicated that rents would rise since, if interest rates remain high, residents may not be able to purchase their own housing, continuing to rent an apartment. On the other hand, as the region’s economy recovers, more expatriates and non-residents will return, who will also look for rental accommodation. These factors will push prices up.
“Real estate is all about supply and demand”, pointed out Suzanne Watkinson, adding: “During the last three years of Covid-related restrictions and a weak economy, there has been an outflow of many expats, non-residential workers. residents and executives, who normally occupy rented units; with his departure, many apartments were left empty”. However, with the economic recovery, more workers from abroad will arrive in Macau, mostly singles or couples who have not yet started a family, which will mean that the smaller units will be occupied, said the head of Ambiente.
Noting that the agency “doesn’t have a crystal ball”, Suzanne Watkinson predicts that the biggest rent increases will be seen in studios and one-bedroom units. So, according to forecasts by Ambiente experts, studios that currently earn between HK$6,000 and HK$8,000 could start to earn between HK$9,000 and HK$11,000 around the second or third quarter of this year. The one-bedroom units whose rent is currently between HK$9,000 and HK$10,000 may have, by the summer, rents between HK$11,000 and HK$15,000, that is, a 50% increase. A two-bedroom apartment renting between HK$11,000 and HK$13,000 could see the rent increase as well, up to HK$15,000. A three-bedroom unit in Taipa or on the Macau peninsula, which currently costs between HK$17,000 and HK$27,000, is expected to maintain the maximum price, while the minimum limit may increase to HK$19,000 . If the three-bedroom unit is located in Coloane, summer rents will be between HK$14,000 and HK$16,000. As for the four-bedroom units in Taipa or on the peninsula, the maximum prices are expected to rise from HK$30,000 to HK$34,000. In Coloane, the maximum price for these properties should be around HK$22,000. And will residents be prepared for such an increase? Suzanne Watkinson believes so. “The perception of job security should improve with the increase in the number of visitors, with the integrated resorts back to normal operations and, consequently, with a stronger economy”, she said.
As landlords increase rents, renters have two options: either they resign themselves and pay the price asked by landlords, or they look for other cheaper options, which are usually located outside the big centers. “So we expect to see more movement to locations further away from the city center and to older properties, – for example Helene Garden -, and to high-density residential areas where there is more supply – The Residencia, Vila de Mer, La Marina ”, he pointed. For now, noted Suzanne Watkinson, the increase in rents is not yet noticeable, but, from now on, “negotiations with landlords will become more difficult”. “We anticipate increased activity among real estate professionals once the Chinese New Year holidays are over. Residential rent prices have not yet started to rise, but will rise in the New Year as more workers from China and abroad start to arrive,” she concluded. Regarding office leasing, the forecast is that prices will increase in the next two to three months. As for leasing commercial spaces, prices are already skyrocketing, in some cases doubling in high density tourist areas.
