Trend: house prices up 5.49% y-o-y in Q3 2018
Macau’s housing market remains strong amidst massive infrastructure investments, which will transform Macau's connections to China and Hong Kong. The average transaction price of residential units rose by 5.49% during the year to Q3 2018, following y-o-y rises of 6.68% in Q2 h2018, 4.22% in Q1 2018, 4.93% in Q4 2017, and 9.59% in Q3 2017. However, House prices fell slightly by 0.38% q-o-q during the latest quarter.
Analysis: Macau’s housing market is expected to remain robust in the medium term, supported by strong economic growth and massive infrastructure investments. The economy grew by a spectacular 9.1% in 2017, a sharp turnaround from y-o-y declines of 0.9% in 2016, 21.6% in 2015, and 1.2% in 2014.
- The 200,000 sq. m. Taipa maritime terminal began operations in June 2017, increasing travel within Macau and its neighbouring cities, and providing direct connections to the planned light rail transit system.
- Construction of the Gongbei tunnel, the only link connecting Zhuhai with the Hong Kong-Zhuhai-Macau bridge, started in April 2017. The bridge is scheduled to open this year.
- The Shenzhen-Zhongshan tunnel, a key infrastructure development in the Greater Pearl River Delta, is also under construction. The project, scheduled for completion in 2020, will reduce the average travel time between Shenzhen and Zhongshan from two hours to less than 30 minutes.
- Beijing has also committed to a comprehensive Guangdong-Hong Kong-Macau Bay Area development plan to increase connectivity, trade and investment between the three regions.
Rents, rental yields: no yields data available for Macau. Recent news. Macau’s economy is expected to grow by 6.3% per year in 2018 and in 2019, according to the IMF.