Macau to restart land sales

Macau plans to restart land sales for private residential buildings by late this year or early next year.

Macau has not carried out any land sale in over a decade.

The relaunch is aimed at generating more revenue and addressing budget deficits incurred over two consecutive years, said chief executive Ho Iat-seng in a question and answer session after earlier delivering his policy address in the Legislative Assembly this month.

As of this August, revenue fell by 13.6 percent year on year to 64.8 billion patacas (HK$62.9 billion), as gaming revenues and related taxes collected plunged following the outbreak of the pandemic.

Private residential projects on the sites to be sold off are expected to add 7,000 to 10,000 housing units to the city.

Ho emphasized that the land sales will depend on market demand and would not be a "mismatch" with current residential needs and the projected public housing to be developed.

"At present, there are 15,000 to 16,000 flats that many people can't afford due to their large area and high unit prices, and the flats with suitable sizes are way more desirable for residents. As a result, there are many vacant flats in the market," Ho added, suggesting regulation to limit flat sizes is forthcoming.

There have only been three parcels awarded to the private sector through land sales since Macau's handover in 1999: one in 2004 and two in early 2008.

Others were directly granted to companies and organizations in the past two or more decades, including land used for integrated resort projects.

Macau adopted a sealed bidding approach to land sales before then secretary for transport and public works Ao Man Long's case of corruption and money laundering in 2012.

In that case, Hong Kong property tycoon Joseph Lau Luen-hung offered a HK$20 million bribe to secure five plots of land opposite Macau International Airport.

In 2014, Macau stipulated in a new law that all land concessions must be awarded via open tender except when public interests are involved.

Association of Property Agents and Realty Developers of Macau president William Kuan Vai-Lam said a resumption of auctions will not drive up property prices but will bring more transparency to the market.