BETTING ON MACAU

Analysts are betting the slow recovery in Macau's housing market will gather pace soon. Property prices are rising, but at a much slower rate than in Hong Kong or mainland China, and remain 33 per cent below their late 2007 peak.

Macau, a small, semi-autonomous region of China on the opposite side of the Pearl River delta from Hong Kong, relies on gaming for two-thirds of its income. Before the economic downturn this former Portuguese colony attracted many overseas property investors, especially ethnic Chinese.

With new casinos opening, visa restrictions relaxed, taxes and foreign exchange controls changed, and equity markets booming, analysts consider Macau ripe for investment again. Jones Lang LaSalle forecasts prices will rise between 10-20 per cent in the second half of this year.

A further boost to its economy will come if a planned bridge connecting Macau to Hong Kong and the neighbouring Chinese city of Zhuhai goes ahead, because it will speed up travelling time to the enclave. At the moment, travel between Macau and Hong Kong is by ferry, jetfoil or helicopter.

(All The World's a Home : Global Property News)