The Macau Association of Building Contractors and Developers raised doubts about how effective a rent control law would be to stabilise the rental housing market, during a press conference at the group’s office in Rua do Campo yesterday.
The outline of a rent control bill was passed in November 2015, and is slated to be submitted for a final vote to a plenum of the legislature next month. The bill proposes to extend the minimum rental period of both commercial and residential leases from two to three years. The chief executive can also place a cap on rent increases, according to the bill.
Addressing the press conference, Paulo Tse, president of the board of directors of the association, said that local rental prices had gone down by 25 to 60 percent over the past two years.
“It means that the housing market is self-regulated even without a rent control law,” said Tse.
Mak Tong Cheng, a board member of the group, told the press conference that landlords might become reluctant to let their flats and would be cautious when choosing their tenants, which might lead to a reduced supply of rental flats.
“A three-year lease may not seem friendly to non-local workers and students who seldom plan for a long stay in the city. They may have to pay compensation equalling two months’ rent,” Mak pointed out.
The extended rental period could also become a burden to local SMEs and start-ups, said Mak.
According to Mak, gaming revenues and the extended operating hours of the Macau-Zhuhai checkpoints were the two major factors
which have affected local rental prices in recent years.
The bill proposes that the government should consider various factors such as the local consumer price index and property price index
when determining the officially allowed rental increase.
Mak said the government should also consider gaming revenues and the extended operating hours of the border checkpoints.
The group urged the legislature not to pass the rent control bill in haste without thorough consideration of its consequences.
Paulo Tse (centre), the president of the board of directors of the Macau Association of Property Contractors and Developers, addresses yesterday’s press conference at the group’s office in Rua do Campo, while fellow board members Gregory Ku Ka Ho (right) and Leong Keng Seng look on. Photo: Annie Cheung
