The current financial instability in the Worlds’ economy is certainly going to affect Macau property prices.

The question is; How ?

Opinions vary of course, that is the nature of ‘forecasting’. One of the world’s most respected financial institutions, the International Monetary Fund or IMF, predicts recession in USA and Europe. You may think that all these smart people gathered under one roof would be able to predict the future very accurately. In fact, the IMF predictions have been accurate less than 10% of the time, reports MDTN.

The opinion of the President of the Macau Association of Contractors and Developers, Mr Fong Chi Keong has been quoted in various media this past week.  He stated that Macau Property prices may fall by 30 to 40% by the end of the year, and the downturn would last for exactly 20 months. Amazing insight.

No one really knows whether either of these crystal ball predictions will come true or not. In fact it is fair to say that no one can be sure what will happen in the next 24 hours, let alone 20 months.

If you are looking for some certainty in these chaotic times, there are two things that you can be very certain of.

1 The mid – long term prospects for Macau remain excellent
2 As rational thinking goes out of the window and emotion takes over, fear makes people sell assets below their true value. There will be some bargains around.
Prices may adjust slightly, and become affordable for some market segments once again. As prices dip, and with interest rates down, we are in the very rare position of having the advantage of both. The opportunity exists right now, and for those with enough rational thinking to see it, this is opportunity staring you in the face

Here are some facts on the Macau Real Estate market:

Macau / China have the highest liquidity levels in the world, with the possible exception of the Middle East
China has more foreign currency reserves than other country
The current economic situation has more bearing on the US and Europe. Asia is less affected
Macau is a very special place. There is no stock market here for people to speculate on. The only investment of volume is property.

Macau real estate market has undergone continuous double digit growth since 2004. During the past 3 years, luxury residential condominium prices have experienced more than 100% growth.
Land is very limited, and this is one of the most densely populated places on earth
It is likely there will be more people selling as it turns into a buyers market
It is likely there will be more people RENTING
There may be a slowdown from developers, this will be good to diminish the supply and keep prices stable.

Banks are tightening lending standards, lending you between 50-75% of your purchase price, this is down from 70-80%
The cost of selling a house is 6%. If you have a property and want to upgrade, you benefit from falling prices because you’ll save more on your next property than you’ll lose in selling your current one.

As people start selling, it is a GREAT time to buy property in Macau!

As you know only too well, no one knows for sure what is going to happen in the real estate or financial markets. Opportunities will present themselves on both markets for those that can recognize it. These will be the people who profit from today’s turmoil. Will you be one of them?