Market sources indicated that the Macau Government announced to construct its first phase of the Macau Light Railway Transport System(LRS)in October 2007, driven by an anticipated growth of annual tourists to the City to over 20 million passengers every year, and to avoid overload situations in the City’s buses, taxi and related transport networks. The eleven kilometers of Taipa segment, from Taipa Ferry to Ocean Station,will be opened in 2016, representing over two-fifth of the total length of the new light railway route.
Meanwhile, a study on the impact of the LRS was introduced by the Macau Government in 2009. Research results suggested that the property price could surge by MOP 1,009 per square feet (or 25.5%) for properties located within 100 metres along each station of the LRS (Phase 1) from June 2009 to January 2014, whereas on Taipa Island, it could go up by MOP 513 per square feet (or 22.6%). Anyhow, the appreciation in property price could drop gradually with increasing distance from the LRS. At the same time, close to a 10% increase in real estate value could be expected for properties along the second phase of the LRS.
In fact, home buyers could normally have significant property price appreciation expectation three years ahead of any opening in railway projects. Land pieces along the Beijing Light Rail Line 13, for example, posted significant fluctuations in 2000, and with a significant upward trend in subsequent years.Besides, land price appreciation emerged in Japan in 1980, a three-year ahead of the commencement of a new railway project in 1983. In other words, perhaps gains in real estate prices for properties along the Taipa Ferry to Ocean Station of the Macau LRS could have already been materialized since late last year