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News Release

Hong Kong and Macau

Jones Lang LaSalle: Improved Labour Market Prospects and Rising Income Contribute to a Robust Residential Market in Macau

Macau’s residential sales market remained energetic in 1Q10, with its primary sales market being particularly active on the back of the strong pent-up demand for quality residential properties.  Both high-end residential capital values and rents were on an upward trend, reports Jones Lang LaSalle in its latest Asia Pacific Property Digest.

Among the several new projects launched for sale in 1Q10, The BAYVIEW in the Pearl district attracted the most attention. Developed by Companhia de Construção e Investimento Predial San Kin Wa Lda, a major local developer in Macau, only Towers 1, 2 and 5 of The BAYVIEW were launched.  Out of the 350 units available for sale, over 85% were quickly sold, with unit prices ranging from HKD 2,600 to HKD 3,800 per sq ft.

Other notable new launches included The Riviera Macau at Inner Harbour and One Oasis in Coloane.  Out of the 518 units at The Riviera Macau, a total of 110 units were snapped up by several investors for an average price of about HKD 3,500 per sq ft.  One Oasis, one of the largest residential schemes in Macau in recent years, was launched for sale towards the end of 1Q10 for prices from HKD 3,600 to HKD 4,700 per sq ft. This project is planned to have 17 residential towers and 20 villas.

Having expanded by over 30% in the three quarters to December 2009, capital values for high-end residential properties grew further by 7.2% q-o-q in 1Q10. Cumulatively, capital values for high-end residential properties grew by 40% for the 12 months from April 2009 to end-March 2010.

On the leasing side, demand for high-end properties, particularly for some of the mid-end projects in Taipa, picked up in 1Q10 on the back of the gradual resumption of the construction projects in Cotai.  During 1Q10, the high-end residential rental remained stable and grew slightly by 1.1% q-o-q.

‘Macau’s gaming revenue will continue to reach new record highs in 2010 on the back of the strong economic rebound in mainland China. The outlook for the city’s GDP growth is also positive with the resumption of the construction projects that were previously put on hold. Both end-user and investment demand will remain active with the improved labour market prospects and rising incomes,’ remarks Marcos Chan, Jones Lang LaSalle’s Head of Research, Greater Pearl River Delta.