Macau: Asia s Las Vegas. The "City with Most Economic Potential in 2006 according to Foreign Direct Investment

Transcription

1 Macau: Asia s Las Vegas The "City with Most Economic Potential in 2006 according to Foreign Direct Investment

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3 Introduction to MACAU Strategically located near Hong Kong and Shenzhen, in the fast growing Pearl River Delta (PRD) Region. Self ruled under Chinese SAR (Special Administrative Region) since1999. China only legalized gambling city. Population of 490,000 people, 32 sq. km. (22 sq. mile). Sub-tropical weather similar to Hawaii. No currency control and No capital gain tax million visitors (56% from China, 27% from Hong Kong) and 4 million hotel guests during US$5.7 billion gaming revenues (passing Las Vegas).

4 China Pearl River Delta (PRD) region About HALF of the world s population (2.9 billions) is within 5 hours flight to Hong Kong / Macau. 450 millions people live within the Pan-PRD region. Macau sits at the hub of China s economic powerhouse. The new bridge from Hong Kong Macau Zhuhai will span 29 KM and will cost US$ 3+ billions to construct. Anticipated opening in will significantly reduce travel time within the region.

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6 Macau Tourist Attractions Ruins of San Paul s Seneda Square Macau A-Ma Temple Macau Tower World Heritage Lists

7 New Projects Wynn Resort MGM Grand Venetian Macao Grand Lisboa City of Dreams Galaxy Starworld Crown Macau Oceanus Pointe 16 super-mall Shangri-La Hotel Marriott Hotel Inter-continental Hotel Four Season Hotel Regal Hotel Dorsett Hotel Grant Hyatt Hotel Airport Ferry Terminal Macau light-rail system Hongkong-Macau bridge Tunnel to ZhuHai

8 Why invest in Macau? Massive 18% GDP growth in Q1 2006, 9% in Per capita GDP=US$25,000 (5 th in Asia). MICE (Meetings, Tour Incentives, Conventions, Entertainments). Cotai Strip = Las Vegas Strip - USD 12+ billion projects, million sq. ft. of casino-resort-convention complex, - 8 new 5-stars resort-hotels with 15,000+ rooms, - 1 million sq. ft. gaming space, - 1 million sq. ft. conference and exhibition center, seat showroom, - 8 live theatre venues (20,000 seats), - 850,000 ft 2 retail-mall space.

9 Relocation & Jobs Opportunities New casinos: Wynn, Venetian, MGM-Mirage, Starworld, Crown. 60,000+ new jobs in gaming, hospitality, entertainment, tourism, and retail services. Average wages US$2,000-2,500. The "4 th Best" place to live in Asia, after Singapore, Tokyo & Hong Kong (based on a 2005 ECA International survey). Severe shortage of skilled and professional workers.

10 Macau Economy future Follow the strong growth model of Las Vegas: Gaming, Tourism, Convention, Entertainment center. 25,000,000+ visitors by ,000+ new residents and thousands of expatriates. 65% of government revenues come from gaming tax. $20+ Billions in new construction projects. Robust economic and rising income (high affordability). Accelerating population growth and household formation. 0% CAPITAL GAIN TAX.

11 Bullish Real Estate Market Gap between Income and Property prices. Stronger economic and income growth ahead. Affordable housing (1/3 of Hong Kong price). Reasonable level of new supply vs. demand. Mortgage interest 6-7% (10 to 20 years period).

12 New Property investment in Macau vs. in China 0% capital gain tax, 3.15% stamp duty * 10% capital gain tax and 5.5% sales tax. Pre-built and new condo very active Lands are privately owned or given permanent government leasehold. 50% loan value for foreign buyers. Limited lands available to develop. Limited supply of new properties. High affordability index. * New laws restrict new condos > 1000 sq, ft. * Lands are state-owned and owners only have Land Use Rights. * Foreigner buyers difficult to get Mortgage. * Plenty of lands auctioned by government. * Over supply of new properties in the market. * Very low affordability index.

13 High-end Condominium Market -2 to +5 years old high-rise. Prices: $250-$350 / sq. ft. Size: sq. ft. High rental demands from oversea expatriate workers. Rentals and prices growing 13% and 15% respectively in Many oversea buyers/investors. Investment yield: 4% 5% Higher potential appreciation vs. middle class housing.

14 Advantages of pre-built condo Access to new property at current prices. Potential to gain appreciation while not holding the property - Put a 25% down payment and lock in the price until close. - Not dealing with property payment/management for months. - Ride the appreciation curve (20 to 30% p.a.) while you wait. - Can be transferred or sold (flipped) during building period. Loan available at 50% of appraised value when closing. Possible to become Macau resident and enjoy all the amenities of Las Vegas life style during retirement or vacation stays. IMPORTANT: There is No Capital gain tax on sales of property!

15 Commercial Market High traffic flow: China tourists. Land: limited zoned area. Retails shops, restaurants, boutiques, specialty stores. - Prices: US$ 225-$625 / ft2 - Rental US$ / ft2 Office rental: by floor / by room. - Rental US$ / ft2 - Service charge included.

16 Investing outside the country Quote from Robert Helm (the Real Estate Guys): Live where you want to live, but invest where the numbers make sense! Diversify the portfolio: invest in international market. What is your investment objectives? - short time vs. long term? - cash flow vs. appreciation? - tax deferral vs. tax free? - doing yourself vs. professional management? - vacation / retirement homes vs. wealth accumulation

17 Property Investment steps: Join a Macau Property tour (please register for March s tour). Identify and sign a purchase agreement to buy your own Macau property (condo, pre-built condo, office space or retail shop). Transfer D.P. to Macau Century21 bank acct. to secure your deal. Apply for mortgage loan from a local bank or foreign bank. Authorize a designee with power of attorney letter to close escrow (also authorization to do title verification, property inspection, fee payments for property tax, lawyer etc.). Option to apply for a Macau resident visa for you to stay, work or do business in Macau anytime. Realize long term capital gain on selling your property or cash out with equity loan in 2-5 years.

18 Residency program thru investment A minimum investment of only US$125,000 (equivalent to 1 million Macau Patacas) in any form, such as purchase of Macau property or setting up an operating company. Must hold a foreign passport other than China (Chinese citizen must apply a 3rd country passport first). 12 years of Free Education and medical care. Residency visa also covers family members: spouse, children under 18 Temporary Resident Certificate approved in 8-10 mo. (can travel in and out of Macau during waiting period).

19 Century 21 Macau Westside Property First Century 21 Realty in Macau. Real Estate consultant: Homes: pre-built / new-built / pre-owned condos Property investment,relocation, business opportunities, etc. Property Management Local loan assistance Member: AMCHAM Investment Targets: Commercial: retail shops, offices, land and businesses. Appraisal reports Title Protection Scheme International Law offices

20 Why Century 21 Macau Westside? The 1st. international Real Estate company. HK$100+ millions in property transactions with oversea buyers. Local experts knowledgeable in Macau real estate and bank mortgage market. Popular online listing of Macau properties (no MLS). One-stop-shop for buying, selling, leasing, relocation, investment, property management. Work with reliable local lawyers and banks to insure smooth financing, title protection and property rental management.