The real estate market is expected to gain traction in the fourth quarter: Centaline Property

The real estate market is expected to gain traction in the fourth quarter: Centaline Property

Macau’s real estate market is expected to stabilize in the final quarter of the year, allowing the transaction rate to return to 1,000, a similar level to the second quarter.

Figures from the Financial Services Bureau show there were 1,028 transactions in the second quarter, an increase of over 90 percent on the previous quarter.

According to a forecast from Centaline Property on Thursday, there were a total of 556 purchases in July and August, with September expected to be around 200 – the same level as the latter.

In other words, the real estate broker predicts a 27 percent decline in transactions compared to the previous quarter, with 760 transactions expected in the third quarter.

The average price per square meter in the third quarter is estimated at around MOP 83,000 (US$10,375) – or around MOP 7,710 per square foot – more than 10 percent lower than the previous quarter.

“The secondary market continued to be under pressure in the third quarter as overall transaction volumes slowed noticeably and attention remained focused on new launches,” John Ng, the company’s regional director, said in a press release.

“Owners looking to sell need to expand their negotiating leverage to facilitate transactions.”

“Although a cycle of rate cuts has begun, owners have not yet started to withdraw or adjust prices,” he added.

In the office sector, office vacancy rates in some top districts continue to be in the double-digit range, leading to further declines in prices and volumes.

The third quarter recorded an estimated transaction volume of fewer than 10 deals, a sharp decline of 70 percent compared to the previous period.