Commercial real-estate services company Jones Lang LaSalle Limited (JLL Macau) forecast in a statement yesterday that the values of high-end residential and mass-to-medium residential buildings will drop 5 to 10 percent this year in both capital and rental values.
According to the statement, with expatriates continuing to leave the Macau labour market, a fall was seen in the city’s rental properties in 2021. The statement noted that the rental values of high-end and mass-to-medium residential properties fell by 9.5 percent and 15.5 percent year-on-year respectively in 2021.
The statement quoted JLL Macau General Manager Oliver Tong Wai Lok as saying that the government was focusing on implementing its “housing ladder” policy which will be dominated by public housing, in the short to medium term, while new supply in the private residential market will remain limited, “which lends support to the capital values of the mass-to-medium residential properties”.
However, Tong also urged residents to evaluate what they can afford before deciding to purchase a property as the market will continue to be affected by many negative factors, such as economic downturns, interest rate hikes and job outlooks in the short run. He also suggested the government consider adjusting property market measures to make sure they are in line with the current economic and market conditions.
Meanwhile, the statement also pointed out that the rental values for the overall office and Grade A office markets dipped 4.6 percent and 1 percent year-on-year respectively. The statement pointed out that the company expects demand for office space this year to remain relatively low, noting that the overall office market value is forecast to drop by 5-10 percent, while Grade A office value is expected to decline by 0-5 percent.
Retail sales rebounded 20.8 percent last year, the statement noted, adding that most categories recorded growth except for supermarket sales which saw a fall of 8.3 percent in 2021 year-on-year. The statement noted that the retail sales of watches, jewellery, leather goods and communication equipment saw the most significant growth, as they went up by 267.8 percent, 248.9 percent and 231.5 percent year-on-year respectively. The statement pointed out that Macau’s top-tier retail property values are expected to drop 5-10 percent in both capital and rental values.
