Macau News Agency article by Aries Un. 14 November 2023
Macau authorities have proposed a bill that will remove a tax obligation for homebuyers to stimulate the housing market.
According to a bill put forward by the Executive Council on Friday afternoon, the 5 percent stamp duty on the purchase of a second home will be dropped.
However, the 10 percent stamp duty for homebuyers going for a third unit will stay in place.
In addition, the bill proposes that the maximum loan-to-value (LTV) ratio for regular residential properties stand at 70 per cent, while the maximum LTV ratio for properties designated for public housing is 90 per cent.
The bill is expected to become law on the first day of next year.
According to the Financial Services Bureau, nearly 230,000 residents own at least one property in Macau, with over 33,000 of them having more than one unit.
“When the ‘drastic measures’ were implemented in the past, three key factors were taken into account: supply and demand, international capital liquidity, and interest rates,” said Iong Kong Leong, director of the Financial Services Bureau.
“However, significant changes have since occurred. After careful consideration, the government believes that it is now time to relax measures managing demand.”
“The primary focus is not solely on property prices but rather on addressing the needs of residents in order to improve their living conditions,” he added.