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Sunday, December 12, 1999, updated at 11:48(GMT+8) Business Return Expected to Boost Macao's Real Estate Industry "Return effect" has already been felt in Macao's construction and real estate industries which constitute one of Macao's four economic pillars. Macao's return to the motherland and China's expected entry into the World Trade Organization (WTO) are the expected leading factors to stimulate Macao's industrial and commercial prosperity, which will in turn drive the public demand for housing and office buildings, a basic factor to boost construction and real estate of the peninsula, sector insiders said. Macao now has large numbers of vacant residential apartments enough for another 200,000 people, or nearly half Macao's present population. And a square meter of newly built apartment building in downtown area only sells at a little more than 5,000 Renminbi yuan, cheaper than in some major inland cities like Beijing. So, the real estate sector in Macao is turning for the better, especially for Chinese enterprises and organizations. Statistics show that China-funded businesses account for 70 percent of Macao's construction and real estate companies. During the past decade, Chinese enterprises completed more than 200 large and medium-sized projects in Macao, including the Macao International Airport, one of the world's few large projects built on the land reclaimed from the sea at a cost of over five billion US dollars. Edmund Ho Hau Wah, Chief Executive designate of the Macao Special Administrative Region (SAR) to be established on December 20, said that the SAR government will take steps to balance demand and supply for the real estate sector and activate the large sum of non-performing capital. He promised to improve related laws and regulations for attracting outlanders to purchase housing or settle down, as well as foreign companies to set up logistics or branches in Macao. The prime time of Macao's construction and real estate came in 1987 after the signing of the Sino-Portuguese Joint Declaration, which set the tune for Macao's development and boosted investors' confidence. As a result, foreign investment poured into Macao, and the price of real estate shot up. Macao, a tiny area of 23.5 square kilometers, is home to 450, 000 people, one of the world's most populous cities. And some 40 percent of local residents have their own housing, according to statistics. In the past few years, however, Macao's real estate became overheated. In 1996, the Macao government stopped auctioning off land which didn't leave much room for development. This, along with other steps, led to a visible growth in the total number of housing units sold. As Macao's return to China draws near, people's confidence grows. Industry insiders believe that Macao's construction and real estate will experience further expansion. Printer-friendly Version In This SectionSearch Back to top Copyright by People's Daily Online, All rights reserved |
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