Call it the Monte Carlo of the Orient, or Las Vegas of the East. Macau's gaming revenue reached a record 267.8 billion patacas last year, up 42 per cent year-on-year, and about six times of that of Las Vegas.
Macau's residential property market has skyrocketed. So hot was the market that the government imposed a special stamp duty last year to curb speculation.
The cooling measure came into effect in June with a 20 per cent special stamp duty on residential properties resold within a year of their purchase and the punitive rate will be 10 per cent if resold from one to two years. Transaction volumes slumped substantially.
Even so, luxury home prices in Macau still rose more than 15 per cent last year. There are signs of revived buying interest this year, especially in the primary market, with strong results for new projects such as One Oasis phase three and La Scala, both located near the Cotai Strip - a bustling locale containing upscale hotels and casinos.
Wilson Chung, marketing director of One Oasis, says more than 1,800 units have been sold since the launch in 2010, and total sales revenue has exceeded HK$14 billion. The selling price for Park Residence, the phase-three development of One Oasis, is HK$5,500 per square foot, up more than 35 per cent compared with phase one's HK$4,000 per square foot, two years ago. 'Buyers include both end-users and investors,' Chung says. 'Some of them bought into One Oasis as a new home or for resort living. At the same time, they see it as a long-term investment that can generate rental income and achieve capital appreciation.' Chung says more than 50 per cent of buyers are locals, while those from the mainland and Hong Kong each account for about 20 per cent.
'Land costs are still low in Macau,' says Franco Liu, managing director of Savills Macau. 'Developers are willing to spend more in the use of materials and fittings for their new luxury projects to increase their appeal.'
