Investing in Macau Real Estate: Asia’s Overlooked Market – InvestAsian

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Numerous apartments in Macau, several of them freehold, stand next to its world-class casinos.

Macau Real Estate’s Potential

There’s no stock exchange here. As such, buying property in Macau is the only method of investing in the city besides starting a company here.

Buy/sell, rent/lease residential &
commercials real estate properties.

But you still won’t have the same variety of real estate options as you would in Hong Kong or Shenzhen. Gambling and tourism are Macau’s two major industries. They don’t really have a tech, finance, or manufacturing sector.

Worse yet, a tiny population of under one million makes catering to the city’s domestic consumer market impractical. Foreigners who start investing in Macau generally either start a business or buy real estate.

Here’s the good news: Macau’s economy is starting from a far lower base than Hong Kong and isn’t quite as developed. GDP per capita in Macau is lower while tourist arrivals are rising by over 10% per year.

Investing in Macau real estate gives potential for return because of this. Foreign buyers should understand that most opportunities in Macau rely on the tourism and gambling sectors though – whether directly or indirectly.

Macau’s Connectivity: A Main Growth Driver

Macau and Hong Kong are also now more connected than ever. The two cities were previously separated by 62 kilometers of water. You had to either take a helicopter or an hour-long boat ride to travel between them.

Recently, one of the longest bridges in the entire world was finished. This links Macau and Hong Kong by road, allowing you to simply drive between them now.

The bridge gave more than 7 million people in Hong Kong easier access to Macau when it was finished several years ago.

Plans for connectivity in Southern China don’t stop there. A series of trains, highways, bridges, and roads will further link Macau and Hong Kong to mainland China.

Shenzhen and Guangzhou – two megacities of approximately twenty million people each – are right across the border from Macau.

Over 80 million inhabitants live in the Pearl River Delta region as a whole. Even if it just leads to more tourists and gamblers, increased connectivity will surely help boost Macau’s economy in the long-term.

To summarize, expect to pay a minimum of US$500,000 if you wish to start a company or buy real estate in Macau.

Investing in Macau’s property market could pay off if you’re active, or have spare cash and are willing to cope with a severe lack of available options.


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