More off-plan units moved in May

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In the month of May, a total of 535 transactions of off-plan units were made, registering a jump of 335 per cent month-on-month and 552.4 per cent when compared to 82 transactions in the same month a year ago.
According to the latest data released by the Financial Services Bureau (DSF), the price for off-plan units in May slightly increased by 2.7 per cent when compared to the previous month, and surged by 34.7 per cent year-on-year, standing at MOP139,886 (US$17,411) per square metre.
In particular, some 393 off-plan units were sold in the Taipa District alone, compared to only one a month ago and three recorded in the same month last year.
The price in Taipa for units still under construction was the highest at MOP145,363 per square metre.
Jane Liu, Manager Director of real estate agent Ricacorp (Macau) Properties Limited, said the notable increase in transactions of off-plan units mainly resulted from the sales of Nova Grand, which is being developed by Shun Tak Holdings.
The new property’s construction is scheduled to be completed by the fourth quarter of 2018, according to the information posted on Shun Tak’s official website.
In general terms, a total of 1,610 units were sold in May, a rise of 48.4 per cent when compared to the previous month and 55.4 per cent vis-a-vis 1,036 in the same month of 2016.
The average housing price in May hit MOP114,463 per square metre, as revealed by DSF data, increasing by 19.5 per cent month-on-month, with a notable growth of 48.3 per cent year-on-year.
In geographical terms, Coloane is the only district where fewer units were sold in May, with only 26 transactions compared to 56 in April and 33 during the same month last year.
As such, the price dropped from MOP145,208 in April to MOP107,468 in May this year, while the price indicated a year-on-year increase of 6.1 per cent.
For the sales performance of second-hand flat units, a total of 1,075 units were transacted at an average price of MOP101,361.
The number of transactions for completed units registered both month-on-month and year-on-year increases of 11.7 per cent and 12.7 per cent, respectively.
The prices for second-hand units also experienced growth, posting increases of 13.4 per cent when compared to April’s price (MOP89,366) and 35.2 per cent vis-a-vis MOP74,962 in May 2016.
On the other hand, the DSF recorded one case of a residential transaction that paid the special stamp duty (SSD) of MOP150,000.
There was also one case of a transaction for a commercial building unit and an office, with SSD attracting MOP41,844 and MOP35,407, respectively.
In total, the SSD amount paid in the month of May reached MOP227,251 to post a drop of 96.8 per cent when compared to April.
Under the additional 10 per cent levy on property transac­tions made by non-resi­dents of the MSAR, some MOP56.84 million was paid for 48 resi­dential properties, bringing the total amount this year to MOP231.38 million for 282 total transactions.

Prospects
In the wake of the implementation of the latest adjustment of mortgage ratios in early May, Ms. Liu said the impact would only be visible in July although she affirmed that transactions are significantly down.
“Many buyers can pay the mortgages but they can borrow less now,” said Ms. Liu.
The ratio of mortgage loans for real estate acquisition has been readjusted in four housing price categories, with the biggest cut applying to the purchase of residential units costing up to MOP3.3 million, down to 70 per cent from 90 per cent.
The cut of mortgage is only affecting buyers purchasing second houses, with first-time buyers unaffected.