The new rules aiming to promote the healthy management of Macao’s property market – including permission for banks to lend to young Macao residents who are first-time buyers a greater percentage of the agreed valuation on a property – will come into effect tomorrow.

The Macao SAR Gazette has published today the amendment to existing urban and housing tax regulation, and the law on stamp duty tax for the acquisition of more than one residential property.

The two bills received second and final readings in the Legislative Assembly on Tuesday (6 February) and Wednesday (7 February), respectively.

Under the new rules, exemption status of leased housing with reference to vacant residential property tax will be cancelled.  

The new stamp duty tax rule applicable on acquisition of a second residential property stipulates homebuyers will be obliged to pay – in addition to existing taxes – 5 percent of property value. For acquisition of a third property and above, the additional stamp duty will be 10 percent of property value.

Regarding the new mortgage-lending rules, the Government has given permission for banks to lend – to young Macao residents who are first-time buyers – up to either 80 percent or as much as 90 percent of the agreed value of a property.

The Chief Executive, Mr Chui Sai On, said the new rules aimed to promote a healthy development of Macao’s property market, while creating better conditions for young people to be able to purchase a residential property as first-time buyers.

Speaking to reporters on Thursday (8 February), Mr Chui urged members of the public to exercise care when making a decision regarding purchase of a property, bearing in mind their ability to afford the asking price.

The Macao Monetary Authority and the Financial Services Bureau jointly held a press conference on Thursday to explain to the public the new rules.

Government officials reiterated that banks have to follow guidelines on management of risk and would cautiously assess any borrower’s financial ability to repay a loan, allowing the level of monthly repayment to be no greater than 50 percent of a borrower’s monthly income.

People interested in purchasing a residential property were urged to pay close attention to the development, locally and internationally, of the underlying economy and to property market conditions, and assess their own ability to service debt.