Macau News Agency article by Aries Un. 14 November 2023.
The bill proposed recently by Macau authorities to incentivise housing transactions is expected to primarily benefit homeowners seeking to change houses, a property agent has told the MNA.
Under the bill, expected to be effective early next year, all potential home buyers will be subject to a 70 per cent loan to value ratio for mortgages – a universal practice that will bid farewell to the rules introduced in 2018 to expand ownership among the younger generation.
Currently, first-time buyers, aged between 21 and 44, could enjoy a 90 per cent ratio for units priced at less than MOP3.3 million.
It goes up to 80 per cent if a unit costs between MOP3.3 million and MOP8 million.
“It will make it more difficult for first-time buyers as they are now required to pay 30 per cent,” said Jane Liu, a Ricacorp Macau agent.
“The new measures will just usher in opportunities for those who intend to change houses, possibly bigger ones,” she added, referring to potential buyers with deeper pockets. “It is more of a boost to the circulation of goods overall.”
Another highlight of the bill put forth by the Executive Council last Friday seeks to drop a 5 percent stamp duty for the purchase of a second home.
However, the property agent forecasts no significant increase in housing prices in spite of the new measures, which will soon be heading to the Legislative Assembly for review and discussion.
“The economic landscape is now so much different than it was 10 years ago. The housing market is now left more reliant on the interplay between supply and demand.”
The forthcoming change of policy, according to her, is likely to dwindle demand for aged tenements as potential buyers will be more drawn to new offerings in the housing market.