Macau Lawmaker is Expecting Housing Bubble Burst
Written on February 12, 2008 by admin
Lawmaker Lee Chong Cheng called on the government to cut down the rising price of housing estates and prevent the housing bubble bursting in Macau. In his written interpellation, Mr Lee asked the government if there was any microeconomic plan to halt the crisis of the burst of the housing bubble, insisting on knowing what the government will do in order to minimise setbacks in the economy and finance markets, should the bubble actually burst.
Mr Lee said in the interpellation that when looking at the the supply and demand of the housing in Macau nowadays, “the bubble is obviously appearing.” The growth of the Gross Domestic Production (GDP) in Macau was up more than three percent in the last year, the average growth of the last five years also climbed up two percent, under the robust growth of the gaming industry, he added.
The interpellation also indicated that the average salary had increased approximately six percent compared to five years ago, however the price of housing had risen two and a half times more than that of three years ago. According to Mr Lee, the average price of housing was 520 thousand patacas in 2003, and housing had since climbed up to 1.81 million in the first three quarters of last year. Residents have to pay at least 180 thousand patacas for a down-payment nowadays, which is three times more compared to the price of three years ago.
He also asked the government if the consequences of such “land’s open tender ” and “first-home buyers scheme” may eventually boost the price of housing and the real estate bubble. Mr Lee also said that although a couple who are both employed, still manage to spend as much as 70 per cent of the total monthly income, which is three per cent more than that compared to 2003.
He added that the world bank standard of the housing should be around a family’s total income in six years, which should be around 1.13 million patacas according to the average salary figures for Macau last year. “Such a figure indicates that the price of housing in Macau nowadays has already exceed six-fold of the usual buying capability of Macau residents.”
Mr Lee asked why the government did not clarify rumours that it wants to re-open the “investment immigration scheme,” to boost the housing price. “The crucial problem of the housing in Macau is that the law on ’sales in advance’ and property agents is on the ‘blanking’ status, which is causing the housing bubble and unlawful dealing in the market.”
Mr Lee asked when such laws on the market of “sale in advance” and property agents inspection will be legislated in order to ensure the proper operation of the housing market.
He also asked why the government recently opened a land tender, which is now creating excuses for property owners to hoist the price of the housing.
In addition, Mr Lee asked the government how much the reserve for the housing crisis is, and if he has considered what consequences there will be if housing prices plummet and how the government will be able to afford such a financial burden.
Courtsey :: Macau Daily Times
Technorati Tags: macau
If you enjoyed this post you might want to subscribe to our RSS Feed!
- 
- 
- 
- 
Take a look to these similar posts!
