In the month of June, a total of 847 flat units were sold, down 47.4 per cent when compared to the previous month, according to the latest data released by the Financial Services Bureau (DSF).
However, property sales in June experienced a slight increase of 6.7 per cent when compared to the same period a year ago, up from the 794 registered in June of 2016.
Jane Liu, managing director of Ricacorp (Macau) Properties Limited, said the performance in June is within expectations, given the introduction of the adjustment to the mortgage loan ratio last May.
The government’s announced plans were intended to enable second-time buyers, if disposing of their first property, to access the same credit percentage as first-time buyers, a situation Ms. Liu reveals, can only happen once the sale is completed.
“The banks cannot do [the higher mortgage rate] if buyers haven’t sold their existing property yet […] and many buyers are afraid of selling out their properties before buying a new one,” explained Ms. Liu, while saying that the government had not communicated well with the banking sector regarding the new adjustment.
Meanwhile, the number of transactions in Taipa saw the largest decrease among the three main zones of the city, dropping 78 per cent month-on-month, with only 147 transactions compared to 669 registered in May.
Ms. Liu explained that many new property units were sold in May, resulting in the quieter transaction environment in June.
She further said that the performance in June “could have been worse” if the new project – the Carat, located in NAPE – were not introduced during the month.
Average property prices also dropped by 17.6 per cent month-on-month in June, to MOP94,265 (US$11,729) per square metre.
The price, however, registered an increase of 20.2 per cent when compared to the same month the previous year.
For the Macau peninsula, the average per metre housing price stood at MOP89,801, down 5.8 per cent month-on-month, but up 18.9 per cent year-on-year.
Meanwhile, prices in Taipa experienced the largest drop amongst the three areas, down 28.1 per cent when compared to May, at some MOP95,253 per square metre, however still seeing a 13.3 per cent increase year-on-year.
Transactions dropped in both completed and off-plan units
According to DSF data, the total number of completed properties sold was 724, posting a monthly drop of 32.7 per cent.
In comparison to property sales in the same period of 2016, there were two fewer transactions of completed units in June.
District-wise, the number of transactions in Areia Preta stood at 71, the highest number of transactions among the city’s districts in June.
Regarding off-plan unit sales, June’s performance posted a notable 77 per cent decrease month-on-month, down to 123, compared to 535 recorded in May.
Nevertheless, sales posted a year-on-year increase of 80 per cent when compared to the 68 transactions recorded in June 2016.
Prices also dropped month-on-month
The average price in June for completed units was MOP85,157 per square metre, a decrease of 16 per cent when compared to the MOP101,361 registered in May, but still a 14.1 per cent increase year-on-year.
Meanwhile, the price per square metre for off-plan units also dropped month-on-month in June, from MOP139,886 in May to MOP134,204 in June, a decrease of 4.1 per cent.
Similarly, the price for off-plan units per square metre increased by 24.1 per cent when compared to MOP108,114 in June of 2016.
The representative from Ricacorp predicts that the gloomy real estate market will persist to July, given that no new projects are rolling out sales in July.