Amidst the Coronavirus outbreak and the global economic uncertainties, the overall property market in Macao remained inactive in the first quarter of 2020. Despite of that, the performance of the office market was relatively stable, and the transaction volume and consideration recorded a quarterly increase during the first quarter. According to the Statistics and Census Service (DSEC)’s latest statistics, the office market recorded 43 transactions in the first quarter of 2020, up 4.9% q-o-q, and the consideration increased by 21.9% on a quarterly basis to MOP 407 million. Even though the selling price of the overall office market dropped 2.5% q-o-q to MOP 10,497 per sq ft in Q1, it recorded a yearly rise of 10.7%. General speaking, Macao’s office market was mainly supported by the positive news in the market.
Benefit from the favourable factors in the market, including Mainland China suggested to establish a securities market denominated and cleared in Renminbi in Macao at the end of last year. It will likely to provide support to the future office demand as more new companies will enter into the securities market in Macao, and the transaction volume will move upward, correspondingly. Apart from that, Macao government has implemented a series of economic relief measures to ease the impact of pandemic on people’s livelihood and the businesses. It might help boost economic growth in Macao in the near term.
The coronavirus situation in Macao is currently under control. The investment sentiment is projected to be improved given the recovery of economic activities and the government’s relief measures, which have been taking effects. As such, it is believed that the volume in sales and rental office market will go up after the pandemic has been settled.