Easing travel between HK-Macau may boost property sector

This could also drive the tourist and business sector in Macau.

Hong Kong and Macau are mulling plans to ease restrictions between the two cities, which JLL said could ultimately help boost Macau’s property sector.

In its Macau Mid-year Review, the firm said the eased restriction could boost the tourist and business sector in Macau.

“Recently Hong Kong and Macau are exploring to ease the travel restrictions between the two cities,” JLL Macau's Director of Valuation Advisory Services Mark Wong said.

“This will create a positive effect to Macau’s tourist and business sectors, and it’s especially important for the recovery of the city’s economy, retail, and real estate markets.”

Macau’s economy started to recover in the first half of the year, but this was hindered by the new round of COVID-19 outbreaks in Guangdong last June.

Total residential sales transaction volume in Macau, picked up in the first half of 2021, but slowed down in June.

According to the Macau government’s statistics, a total of 3,297 residential sales transactions were registered as of June 2021, up 8.5% year-on-year (YoY).

Presale transactions totalled 225, accounting for only 6.8% of the total residential sales volume, lower than the average levels recorded in the past.

Moreover, in the first five months of 2021, a total of 2,459 new incorporations were registered in Macau, up 27.9% YoY.

“The travel restrictions between Hong Kong and Macau led to a delay in corporates’ decisions on leasing offices, creating pressure on the office leasing market,” the report read.

“However, with the lack of new Grade A office supply, the leasing market still managed to achieve a satisfactory level of transaction volume.”