[DrBubb]

The Manhattan / Tapia East
The Manhattan is Macao’s first residential development designed and built to truly international standards of luxury. Built on rare freehold land, The Manhattan occupies an ideal location overlooking the Cotai Strip, where The Venetian Macau, City of Dreams, Four Seasons and many other resorts are now under construction.

= = =

Luxury housing comes to Macao
By Sonia Kolesnikov-Jessop International Herald Tribune ... August 24, 2006

Other than a few dozen villas, there are only a handful of residential properties in Macao that would be classified as "luxury" by international standards. But that is expected to change in January with the completion of The Manhattan, a 175-unit development being built by MacauLand Holdings and Citigroup Property Investors.

"We picked this site because it's in a great location, right off the Cotai Strip," explained Benjamin Kao of MacauLand. "Cotai will be Asia's version of the Vegas Strip, so this is a prime location, but the icing on the cake is that we're also just next to Old Taipa Village, which is a charming colonial area full of great restaurants and shops."



The two-tower project is pegged to the region's casino boom and the white-collar workers it is attracting. The expatriate population here already exceeds 10,000 and the real estate agency Jones Lang LaSalle estimates that another 7,000 to 15,000 expatriates could arrive just to fill casino management jobs in the next three years alone.

Kenneth Tsang, head of research for south China at Jones Lang LaSalle, believes this influx of white-collar "casino expatriates" will fuel a strong demand for medium- to high-end residential properties in both the rental and sales markets.

Since sales in The Manhattan's north tower began in late June, about a third of the 85 units have been sold for an average price of 3,200 Hong Kong dollars, or $412, per square foot; the developer expects the overall average price may reach 3,600 Hong Kong dollars per square foot.

Also, The Manhattan is being sold freehold, an unusual status in Macao, where most properties come with just a 25-year leasehold.

The two 37-story towers were designed by Tam and Philip So and Associates of Hong Kong, and were inspired by Art Deco designs in New York. Interiors are being done by Richards Basmajin, the Hong Kong-based design company that has a long list of clients in the area, including the Four Seasons Hotel Hong Kong.

Macao's current housing shortage has pushed rents up an average of 28 percent in the last year, and by more than 50 percent in the high-end segment. For this reason, The Manhattan is attracting a fair share of experienced property investors, mainly from Hong Kong, Kao said.

Brett King, a Hong Kong attorney, bought a 1,720-square- foot unit on a high floor for 3,800 dollars per square foot and has reserved another 2,300-square-foot unit on a mid-level floor at about 3,600 dollars per square foot, both as investment properties.

"With the housing shortage and thousands of expats supposed to be moving in, a buy-to-let property is an easy investment. On top of which, there are no taxes on capital gains and no property taxes for new properties," said King, who is hoping for about a 5 percent rental return.

King, a partner in the law firm of Paul, Hastings, Janofsky & Walker, said, "As a lawyer, I also like the fact that Macao has a pretty decent legal system. I looked at Shanghai and Beijing, but the rules in China change arbitrarily and there's little chance of legal redress if something goes wrong."

While more luxury developments are expected in the coming months, prices are still expected to increase. "If we were to build the same building, breaking ground now, it would cost us 30 percent more for the same quality," said Dan Tagliere, another executive at MacauLand. "Construction costs are going up 20 percent a year because everybody is building."

"There is a massive shortage of labor in Macao, with only 26,000 construction workers, and the Cotai Strip is taking about 15,000 of them," he added. "Wages and land costs are going up fast."

Other than a few dozen villas, there are only a handful of residential properties in Macao that would be classified as "luxury" by international standards. But that is expected to change in January with the completion of The Manhattan, a 175-unit development being built by MacauLand Holdings and Citigroup Property Investors.


...more: http://www.iht.com/a...ews/remacao.php

This post has been edited by DrBubb: 31 January 2007 - 05:00 AM

[DrBubb]

Firms chase large space in Manhattan towers project

Zach Coleman ... February 10, 2006

Strategic investors are in talks with MacauLand and Citigroup Property Investors to buy one of two towers in their joint-venture luxury residential project in Taipa.#

The partners plan to begin public sales of apartments in the project, called The Manhattan, in May. Its 169 units are to be ready for occupancy next February.



MacauLand principal Dan Tagliere said he expects prices to start at about 3,000 patacas (HK$2,913) per square foot. He said a number of companies are interested in buying blocks of units in the towers to house staff. The partners plan to retain ownership of a large number of units for leasing.

Two-thirds of the apartments are three-bedroom and the rest have four bedrooms. Unit size ranges from 1,626 square feet to 2,492 sq ft.

Fellow MacauLand principal Benjamin Kao said he expects most units will be occupied by expatriate executives, but added that rising incomes are leading more Macau residents to consider trading up from old, paid-off apartments.

The joint venture partners aim to position The Manhattan as an international-class development. "We want to do for the residential market what Sands did for the gaming market," Kao said.

The Manhattan will feature a 17,000 sq ft clubhouse, shuttle bus service to the city center, air-conditioned elevators and concierge service. Flats will be furnished with high-quality appliances, including wine refrigerators and dual heater/air-conditioners. Buyers will be offered pre-set furniture packages.

British property company Savills will manage The Manhattan, which Kao said will make the towers the first residential buildings in Macau managed by an international company. He believes this will help the development to enforce rules on residents to keep up an upmarket atmosphere at The Manhattan. The project also marks the first Macau investment by Citigroup Property Investors, a unit of US bank Citigroup which invests client and bank funds together in real estate.

Kao and Tagliere declined to say how much the joint venture is investing in the project. Hong Kong-listed Upbest Group said last year that it would spend about HK$95 million to build a 64-unit apartment building on a site across the street from The Manhattan. The company agreed to pay HK$27 million for its site, which at 7,201 sq ft is less than a quarter the size of The Manhattan's.

The joint venture bought The Manhattan site from local company San You Development, which built the high-end Kingsville project next door.

Formosa Group and Global Property Partners, both Hong Kong-based real estate investment funds set up by Tagliere and Kao, originally bought 27 apartments in Kingsville in 2004 for leasing to expats through their company Quadrangle Properties. High returns from that led Tagliere and Kao into their deal with Citigroup and San You to take over the freehold site that had been intended for Kingsville's second phase.

@: http://hk-imail.sing...;d_str=20060210

This post has been edited by DrBubb: 31 January 2007 - 04:59 AM

[DrBubb]

SOBERING STATS...

Land, Public Works and Transport Bureau figures show 49 private buildings with 5,964 residential units under construction during the second quarter of the current year while another 99 private building projects are under evaluation and pending for approval.

Those 148 projects, if completed, will provide 26,264 residential units. The majority of these projects are targeting the luxury market, at least by Macau standards, with prices of $2,000 per square foot and up
. . .

buyers of Macau's new luxury apartments fall mainly into four groups.

Management Staff from Abroad
New casinos and hotels under construction in Macau will need at least 100,000 employees. Macau's local manpower supply cannot keep up with the demand, so expatriates, particularly from Hong Kong and China, will likely fill those vacancies

These new expatriate recruits are different from most overseas workers previously in Macau. They're mainly professional, mid-level and management personnel who see long term career potential in Macau, which may have the best combination of living conditions, economic growth and investment opportunity in the Pearl Delta region over the next decade. Instead of paying HK$5,000-HK$6,000 (US$643-US$771) to rent an apartment, they would rather buy one. These expatriates want properties with a clubhouse, good management and other amenities in the HK$1.5 million to HK$3 million price range.

Capital Investment Scheme Entrants
Under Macau's Capital Investment Entrant Scheme, buyers residences costing HK$1 million or more get a Macau ID card instantly. The scheme has attracted wealthy mainlanders who value both the simplified travel with a Macau ID and the investment. This key market segment has put a floor under some real estate prices.

Macau Yuppies
The nouveau riche don't just come from outside. Many Macau residents are seeing their incomes rise in the booming economy. For instance, a youngster working in a casino can earn a monthly salary of HK$15,000. For a HK$2 million 1,000-square foot flat with 90 percent financing over 30 years, the monthly instalment at the current mortgage rate is around HK$10,000. That's one-third of family income for a husband and wife team of baccarat dealers.
Flats at Nova City in Taipa and La Cite in the prime Perola district priced at $2,000 per square foot are sold outfitted with domestic appliances and other fixtures and have good facilities, so buyer would probably get a lifestyle upgrade over a comparable rental. These large housing estates are the first choice for young buyers, the experts say. Jimmy Yeung of Midland Realty Macau warns that these young people might need a year or two to save up for the down payment.

Rich and Eminent
Flats at The Manhattan are priced at $3,200 per square foot and the smallest flat is 1,600 square feet, so the building isn't aiming at casino floor workers. Jimmy Yeung, sales director of Midland Realty Macau, says that the target clients of this kind of selective luxurious apartments are not ordinary families, but moneyed classes from greater China and around the world. Macau has gotten on the jet set's radar as it begins to add world class shopping and other facilities, so it follows that Macau should have some world class homes as well. With the support from these four types of buyers, international investors still believe there's a healthy market for luxurious apartments in Macau.

...MORE: http://www.skyscrape...ad.php?t=427664

This post has been edited by DrBubb: 31 January 2007 - 05:09 AM

[DrBubb]

Your Invitation to the High Life ... 2006 Dec 01 - 17:47

Luxury residential properties are springing up in Macau to do justice to the glitz of the gaming destination

As wealthy people increasingly come to play in Macau, more of them want to stay. A new crop of luxury residences are springing up to accommodate them.

As local wages rise on the back of the economic boom and investor dollars show no signs of waning, high-end residential properties and serviced apartments are also mushrooming in Macau to satisfy consumers' increasingly sophisticated tastes.

Privileged location
For the ultimate indulgence, a villa in a secluded location away from the city bustle, but not too far away, is indispensable.
Penha Hill has long been the abode of Macau's privileged few. Its dwellers not only have large fortunes to spend, but also enjoy high social status. Due to Macau's tiny size, plots that are eligible for the development of villas are quite limited. This makes a Penha Hill address all the more desirable for people who can afford tens of millions to pamper themselves just a little.
Flying Dragon Villas, a group of 10 mansions on Penha Hill, have sold out before their completion. Buyers include well-known business personalities from Macau and Hong Kong.

Invitation only
According to Flying Dragon developer Trust Construction and Investment Ltd, the strong response to the new property was no surprise. In fact, they anticipated oversubscription from the beginning, so sales of Flying Dragon have been strictly by invitation, ensuring these coveted villas go to society's top names. This sales strategy helps sustain the success of a truly top-end property: exclusivity makes a property more attractive to eminent buyers while eminent buyers make a property more exclusive.
In the words of the developer, Flying Dragon is something so precious that money alone cannot buy it. But, make no mistake, you'll need a pile of money to secure an invitation.

Home grand home
Located on Penha Hill's prime location overlooking serene Nam Van Lake, Flying Dragon comprises a total of 10 three-storey villas. Many prominent and influential figures have called this area home, including the late Ho Yin, father of Chief Executive Edmund Ho. Today the site abuts New Bamboo Garden, lodging for visiting leaders from Beijing.
Flying Dragon villas' useable floor areas range from 8,141 to 13,223 square feet, with price tags of MOP60 million to 70 million (US$7.5 million-8.7 million). Comparable villas in neighbouring Hong Kong would cost at least twice as much. No wonder Flying Dragon has stirred up considerable interest in Hong Kong.
Every villa has unique features designed to impress. Each home includes a semicircular balcony showcasing panoramic views of Nam Van Lake, and four larger villas include a garden covering more than 2,000 square feet.
Industry observers believe market demand for top-end villas will continue to swell. So developers are scouring Macau's limited landscape for more sites to build luxurious homes to satisfy increasingly rich tastes.

Filling the luxury gap
There used to be only a handful of residential properties in Macau that satisfy international standards for luxury. But extravagant properties are multiplying to fill the gap.
The Manhattan - A175-unit development being built by MacauLand Holdings and Citigroup Property Investors. Located right off the Cotai Strip, the twin tower project is scheduled for completion in January. The Manhattan will feature a 17,000-square foot clubhouse. The property will be managed by British company Savills. Since sales of its north tower began in late June, about one-third of the 85 units have been sold for an average price of HK$3,200 (US$411) per square foot.

One Central Residences - This mixed-used waterfront project located between the MGM Grand Macau and Wynn Macau is a joint venture between Shun Tak Holdings and Singapore-listed Hongkong Land. With a total site area around 200,000 square feet, One Central includes 800 units in seven residential blocks of 32 to 38 storeys. It will also feature a clubhouse with indoor and outdoor pool as well as a landscaped garden. Though it is due for completion in 2009, two of its entire blocks have already been sold. London listed Macau Property Opportunities Fund Limited paid HK$673.4 million, a Macau record HK$4,550 per square foot, for a 59-unit block.

by Alan Tso: http://www.macaubusi...ndex.php?id=640

[mocorro]

Richard Branson Betting on Macau
January 27, 2007

Sir Richard Branson's Virgin Group is close to securing a 20-hectare site in Macau to build a US$3 billion ($4.3 billion) casino complex which could add to the city's rise as the world's gambling capital, a newspaper reported yesterday.

The flamboyant British entrepreneur whose business empire ranges from airlines to music and mobile phones, is close to acquiring the site in the Chinese special administrative region, the Financial Times reported.

"We hope to get all the boxes ticked in the next couple of months and start developing the site soon afterwards," Branson was quoted by the paper as saying.

The paper said Branson had held talks with Macau's leader, Chief Executive Edmund Ho, on Wednesday to try and confirm arrangements for the planned entertainment complex featuring three hotels and a casino, which could open as soon as 2010.

Macau recently dethroned Las Vegas as the world's biggest gambling centre, with some analysts predicting its gambling market could more than double to $14 billion in revenue by 2010.


Two of the world's top gaming firms, the Las Vegas Sands Corp and Wynn Resorts Ltd have already built mega-casinos in Macau and other world-class competitors including MGM Mirage are due to pile in later this year.



- REUTERS

[mocorro]

DrBubb, what are your thoughts on Macau?

[DrBubb]

I'm bullish, and considering buying there.
See my other thread: Macau on GEI

- -

ONE-CENTRAL SALES BOOMING
xxx from today's HK Standard, pg.A5:

ShunTak (HK:242) says they have generated more than HK$6 billion in sales at One-Central.

+ 90pc of the appartments have been sold
+ about 700 units, at an average selling price of hk$5,000 ((796 units in total))
+ top prices were as much as hk$6,300 psf
+ an entire block of 68 flats went to an Icelandic insurance co. for hk$782mn (hk$4,400 psf)

ST's other project: Nova City at Taipa Island ((JV with Hopewell Holdings))

+ 40 apartments sold at an ave. price of hk$2,500 psf, prices up 2% last week

Another new project: Harbour Mile, at Nam Van, adjacent to Macau Tower; sales launch end-2007
:: offers 3.8 million sf of office, residential, and retail

Loacl residents account for ONLY 10-20% of residential transactions

Despite all this, ST shares slide 5.8% to hk$10.48

This post has been edited by DrBubb: 01 February 2007 - 02:59 AM

[DrBubb]

From SQUARE FOOT- early Feb. edition----

Before One Central Residences- which sold at an average of $4,360 psf-
normal residential new buildings were fetching $2,300 psf. New buildings under construction:
"I dont think they will exceed One Central but at least they will fill the gap", says Ronald Cheung of Midland

Macau could be set for rampant growth. He says he expects: "Overall residential values to rise by 20 percent
to 30 percent in a matter of months"

+ Even in the secondhand market, they are enjoying good sales performance
+ CapitaLand, Singapore's biggest developer is moving into Macau
:: they will pay $658mn for a 20Pc stake in Macau City studios
:: overall project will cost $15.6billion, and they are expecting a 15pc annual return

However, S&P ratings service has warned of rate cuts, because things are moving so fast

Wynn Resorts, has been so impressed with results at is $9.3bn casino, it will double the size

This post has been edited by DrBubb: 01 February 2007 - 05:15 AM

[DrBubb]

Rising Prices of luxury properties

Prices of Macau apartments that cost 3 million Hong Kong dollars, (US$386,000), or more rose "between 50 and 100 percent" in 2004, said Dick Fong, a director at Midland Realty. Property prices in the prime Nape and Zape districts, where the most active gambling joints, Casino Lisboa and Sands Macau are located, have exceeded 3,000 Hong Kong dollars a square foot, from less than 2,000 Hong Kong dollars a year ago, according to Jim Ng, a Macau-based associate director at Savills, Britain’s third-largest property consultancy.

1,800 bid to buy 56 condominium units

Bloomberg News reported that 1,800 people have placed their names on a waiting list with Cosco Property Development, to buy apartments in a planned condominium development in Macau where only 56 units are up for sale! The report also stated that Bich Pham, a fund manager at TAL Global Asset Management in Hong Kong said, "If you want to invest in Macau property, do it now, Macau will be bigger than Vegas."

Macau slated as the world’s most densely populated city

Macau has been declared as the world’s most densely populated city as of July 2005, according to ExxUN.com a compiler of world records. According to the compiler Macau had a population density of 17,685 people per square kilometer land, ahead of Monaco with 16,620 people, Hong Kong with 6,621 people, Singapore with 6,483 people and Gibraltar with 4,290 people, living per square kilometer land area.

OLD, but interesting: http://www.macaubusi...index.php?id=30

[DrBubb]

JUST BACK from Macau - spent CNY there.

Prices have risen too fast- so I reckon I have missed the opportunity there.
Maybe it will be worth a look in 2-3 years, if we see a correction

[dogbox]

DrBubb, on Feb 21 2007, 03:17 AM, said:

JUST BACK from Macau - spent CNY there.

Prices have risen too fast- so I reckon I have missed the opportunity there.
Maybe it will be worth a look in 2-3 years, if we see a correction

Just keep in mind people said that 3 years ago about Ireland and N Ireland yet prices seen a lot more growth since. There must be a lot of places in China with potential. Surely southern nice coastal areas - Im guessing here but a nation this size will put overwhelming demand on prime beach area real estate in the comming years??

[DrBubb]

Could prices go higher?
SURE. In fact, they are likely to do so, since momentum is huge.

But teh easy money has been made. And I think the risk/reward is no longer attractive.

Having looked at it closely, i will avoid Macau.

HONG KONG looks a far better opportunity right now...

for those interested in fundamentals, consider:

SOME BULLISH POINTS from Today's Hong Kong Press

+ HSBC set to Spark martgage War- (Front Page Headline)
.. HSBC dropped its mortgage rate to 4.87 percent from 5.00, plus a cc-spending rebate of 0.88%
Ina survey by Ricacorp, 46 percent of 100 buyers said the rate cut would speed up peoples' buying plans.
(note: HSBC has the largest market share at 17.6 percent, with BOC at 15.9%, HangSeng at 13.8%)

+ Investment banks see upturn in home sales (Standard. pg.A6):
.. Thanks to: wealth effect of buoyant stock market, and wage rises... plus strong RMB, low deposit rates.
Also: "from now until 2009 there will be a severe imbalance between deamnd and supply (in residential market)
The deleivery of flats will fall from 35,000 units in 2002, to 12,000 in 2009, while the market absorbed 24,521 units
in the period 1998 to 2003. Andrew Look of UBS said.

+ Rates forecast to hit 12-year lows- (Property-P3-Stan.)
.. Real interest rates, or the interest rate minus the prevailing inflation rate are likely to fall to about 1.5 percent this year, a 12-year low. This compares with an average of 3 percent last year

[ChauTauVillager]

DrBubb, on Feb 21 2007, 03:17 AM, said:

JUST BACK from Macau - spent CNY there.

Prices have risen too fast- so I reckon I have missed the opportunity there.
Maybe it will be worth a look in 2-3 years, if we see a correction

I'm based in HK and have just invested in Macau. Can you pls quantify what you saw and what price. Also, what price do you think is 'worth a look'

[DrBubb]

can we continue this conversation ... here ??

Basically, I think HK is a better bet, and I dont like to buy into markets when they have gone parabolic.
Because parabolic moves are oft' followed by crashes

This post has been edited by DrBubb: 19 March 2007 - 10:05 AM

[ChauTauVillager]

DrBubb, on Mar 19 2007, 10:03 AM, said:

can we continue this conversation ... here ??

Will revert to your link.
I bought 2 flats in One Central Residences in Macau on launch day. There were many bankers spending their bonuses and other professional investors there. Project sold within a week. Latest release approx 1 mth after launch fm developers say it is 95% sold (think this was late Jan 2007) (ie some choice units, penthouses may have been kept). According to one developer, latest units hit HKD6300psf (indicating latest batch, maybe 6k). Launch average was HKD4400psf.
The invested funds (eg MPO.L) can sell if 90% launch. Would anticipate that if they sell early, they will sell for HKD7000 ave since they have choice blocks. They may sell when The Venetian opens in 3Q2007 or wait til completion for an even higher gain (reckon over 100%)
For details, I have posted the models of this and Macau in www.skyscrapercity.com (see Asian forums, HK & Macau, Macau.
Have also bought in Singapore earlier. Looking at 50% gain soon (approx 1 year or 9mths since deposit of 20%).
Have also considering increasing exposure to HK, but compared to other markets, return looks 'reasonable', thou understand if you feel Macau has gone parabolic.

This is why I ask, DrBubb, what is reasonable for One Central and other properties in Macau ?? I am too targeting a gain of 100% on completion of One Central. So I think prices are up almost 50% with another 50% to go.