House prices were down 5.09% during the year to Q2 2022

Macau’s housing market remains depressed, amidst ailing economy. The average transaction price of residential units fell by 5.09% in Q2 2022 from a year earlier, in contrast to a year-on-year increase of 1.47% in Q2 2021. Quarter-on-quarter, house prices declined slightly by 0.87% during the latest quarter.

Macau’s housing market grew strongly in 2017 and 2018, supported by robust economic growth and massive infrastructure investments. The economy was estimated to have expanded by 5.4% in 2018, down from a spectacular 9.9% in 2017, but a sharp turnaround from y-o-y declines of 0.7% in 2016, 21.6% in 2015, and 1.2% in 2014.

However, Macau’s housing market slowed sharply in the past three years, as slower economic growth in Mainland China, as well as the civil unrest in Hong Kong, has adversely impacted Macau’s gaming, tourism, and property sectors. The fallout from the fast-spreading COVID-19 added another blow to Macau’s economy.

Rents, rental yields: no yields data available for Macau.

Recent news. Macau’s economy contracted by a whopping 39.3% on year in Q2 2022, a steeper drop as compared to the 8.9% decline in Q1 2022 and in contrast to y-o-y expansions of 18% in Q4 2021, 28.6% in Q3 and 26.3% in Q2, due to falling demand, according to the Statistics and Census Bureau (DSEC).

Before the release of Q2 figures, the International Monetary Fund (IMF) downgraded Macao’s economic growth forecast for 2022 to 15.5% from its initial estimate of a 37.6% expansion. During 2021, the economy grew by 18%, partially offsetting the massive 56.3% contraction seen in 2020.