macau investment ?? 29 June 2007 at 3:32PM in Savings & Investments 4 replies 1.9K views

dunker1

hi all, anyone got involved in property investing in macau ?, either directly or via a property fund (speymill) etc, been rising incredibly there recently with lots of massive investment from the major us casinos, predicted to continue, any info anyone, thanks.

kedj

I read the article in the Sunday-Times about this last weekend and it does sound quite interesting. Here's the link :-
http://business.timesonline.co.uk/tol/business/money/investment/article1976830.ece

influence

The market in macau indeed seem to be booming due to the increasing development especially in the entertainment sector. GDP is growing pretty strong with, to my understanding, similar growth as china. Political tie with foreign countries seem to be healthy.

Just however some issues that doesn't convince me are:
1) Giving the small population in macao and the many development ongoing in the real estate, will this growth sustainable for the next 5 years at least? any potential bubble to be created that might lead to a hugh adjustment in price?

2) Being a 'middleman' for southern china, any movement in chinese market might greatly affect the economy. I am unsure if macau (as a small city) able to withstand pressure of that sort.

3) The fund seems to focus on residential properties. I do however feel that it might be more lucrative in the commercial properties market giving the open trade stand in macau. Anyone know if these funds mean to fund projects for property resale or leasing?

I am not an expert in the real estate market. Can anyone enlighten me about companies like speymill or sniper capital (Macau property opportunities fund)? I don't feel comfortable investing if I don't have a good feel of who handles my money.

*My viewpoints are simply based on what I believe. It is not an advise from a financial advisor.

dunker1

influence...hi... i have pretty much same information as you....could be volatile, but potential high gains, im thinking as a small part of investment portfolio worth a go, even considering a visit there just to have a look around, if you find out anymore please post, cheers.

influence

What also worry me is that when its economy builds upon gambling. There is a significant risk about corruption and bribery. I have also looked at some of the projects which will only have some returns when sales/let commences at 2009. There is practically no value addition at the moment (all price changes are probably based on speculation). Most likely this is a stage where shareholders are dumping money to ensure things work smoothly.

I do notice that the management of MPO has a banking background from HSBC and there are abit of director dealing at the moment. Some directors probably put that as their monthly saving plan somehow if you research on the date.

No comments if it is a good buy or.. but I would certainly wait with uncertainty looming in the Asian market (esp china and surrounding areas).