Real Estate: New Government measures to control market speculation

The Macau SAR Government has announced a number of measures to be implemented in an attempt to control skyrocketing real estate property prices and combat speculation. These measures were discussed and prepared by the Work Group for Promotion of Sustained Development of the Real Estate Market, composed by high ranking officers of the Macau Finance, Justice, Public Works and Housing Departments, Including the Secretary for Transportation and Public Works.

The more prominent measures include changes in taxation of real estate transfers with the suppression of the 0,5% stamp duty tax on intermediate transfers, reductions in property tax for residential lease contracts, restrictions on residential mortgages loans, which include caps on financing amounts and maturity dates, creation of legislation regulating sale of real estate property at development stage and construction of more price-controlled residential units in the new landfills and through conversion of derelict industrial properties into residential units.

Other measures include increased inspections of tax authorities into real estate transfers, creation of specific regulations for the real estate brokerage activity and added demands of project information disclosure with the Land, Public Works and Transport Bureau.

Although most of these measures are still subject to the discussion and drafting of their specific provisions and are to be introduced from 2011 onwards, the residential mortgage loan restrictions have already been published by the Macau Monetary Authority and will come into effect from December 1st, 2010