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News Release

Hong Kong and Macau

Jones Lang LaSalle: Macau’s Residential Market Regains Momentum with Transaction Volume Back to Pre-crisis Levels

The Macau residential market has regained its momentum in the third quarter, returning to its upward trend since March this year.  In 3Q09, the residential sector has shown further improvement with its transaction volume rebounding back to the pre-crisis levels, reports Jones Lang LaSalle in its latest Asia Pacific Property Digest.

Demand for residential properties strengthened in 3Q09. The number of residential sale and purchase agreements reached 1,339 in July and 976 in August, up 3.8% and 6.3% y-o-y, respectively.  Recently completed projects such as One Central Residences and Le Royal Arc were well received by the market with their prices rising by some 10-15% during 3Q09.

The rebound in transaction volume helped push up the capital values for high-end residential properties by 10.3% q-o-q in 3Q09.

The completion of One Central Residences, which was the only project completed in the quarter, added a new stock of 796 units to the market. Its completion also signifies an increase in high-end residential leasing stock. As of end-3Q09, units in the project were able to achieve a monthly rental of HKD 12–15 per sq ft.

On the leasing side, it is worth noting that a hotel operator bulk leased 16 units in Nova City for an average monthly rental of HKD 5.4 per sq ft during the quarter. However, the overall leasing market remained subdued in 3Q09, with the rental for high-end residential market edging up by an average of 1.1% q-o-q.

‘Although Macau’s GDP contracted a further 13.7% y-o-y in 2Q09, the city’s gaming revenue managed to register a record-high of MOP 11.2 billion in August. With the recent listing of Wynn Macau on the Hong Kong Stock Exchange and a potential similar plan for Las Vegas Sands towards the end of this year, Macau's gaming sector will hopefully start to regain momentum and lead to a faster economic recovery in 2010. This will lead to a more prosperous labour market outlook, giving a boost to consumption and property investment demand and also benefiting the residential leasing market,’ remarks Marcos Chan, Jones Lang LaSalle’s Head of Research, Greater Pearl River Delta.