On 23 February, we reviewed the latest interim results for the Macau Property Opportunities Fund, and came to the conclusion that this Aim-traded Fund would be an ideal conduit for those interested in tapping into the growth potential of the Chinese real estate market. Our buy signal was backed up by Thomas Ashworth, a non-executive director of the Fund, who added a further 155,000 shares to his holding at prices ranging between 118-119p.
Prices for residential property in Macau are running at a significant discount to those in both Singapore and Hong Kong. Anyone seeking to buy a residential property in Macau can realistically expect to pay between one-quarter to one-third of the price for a comparable property in Hong Kong. And when you consider that per capita income in Macau is roughly equivalent to the other two cities, it becomes apparent that this price disparity will not last forever. It is entirely possible that, within the next 18 months, Macau's gaming revenues will outstrip those of Las Vegas.
The rate of Macau's accelerated economic growth, together with a shortage of suitable land for real estate development, indicate that residential prices are likely to rapidly close the gap on Singapore and Hong Kong.