Macau's property bubble is expected to deflate further this year as a record number of flats are completed amid falling prices, weakening sentiment, tightening bank credit and an exodus of expatriates from the city.
'The negative impact stemming from a rising unemployment rate and salary cuts may cast a shadow over the market,' said Jeff Wong, the head of Macau residential at property consultancy Jones Lang LaSalle. 'The tight credit environment is expected to extend into 2009, which will further dampen investment and end-user demand.'
Property developers are scheduled to complete a record 4,121 units this year, the most in a decade and up from the 2,389 units that were launched last year.
South China Morning Post