Real estate industry: Fewer restrictions on rental market best


If a mechanism is put in place to artificially restrict the rental market a significant impact upon the market may occur, according to Kun Sio Lap, vice chairman of the Macau Real Estate Development Association (ACFPM) while attending the TDM Radio programme Macao Forum yesterday.
Currently, the MSAR Government is revising the Rent Law, suggesting the setup of a mechanism on rental adjustments to cap rising rentals and control speculation in the market.
There are also grassroots complaints that the rental for certain private properties is too high, leading to occupants constantly having to shift apartments.
“It [the rental cap] would also post a negative effect on the development of the real estate market” said Kun, saying rental in the current market has dropped a little due to the slight recession in the city’s real estate market.
“I think it is more acceptable to let the market decide the price,” remarked Kun.
The ACFPM vice chairman said that the ratio of local residents renting houses is low . . . [thus] . . . the case where local residents suffer high rental and end up with no fixed home is rare.”
Solicitor Ho Kam Meng also agreed that the market should decide the rental price.
“I personally doubt the necessity of imposing such an administrative restriction,” said Ho, while indicating that the imposition of rental restrictions will impact the freedom of the real estate market to a certain extent .
Listeners of the programme expressed opinions that the high rental price of commercial shops has led to the growth of inflation, commenting that the city’s development would be negatively affected.
In response, Kun questioned the fairness to investors if the rental rate is lower than the value of the real estate, adding that different cases should have different approaches when being dealt with.