The Macanese construction industry performed well in 2012. The gross buildings floor area which received approval grew.The number of new construction companies incorporated reached 445 in 2012, an increase of 41 compared to 2011, while total value of registered capital reacheASd MOP59.4 million in 2012, a year-on-year increase of 120%. Construction companies are increasingly looking to enter Macau to meet the growing demand for property in the region.
To transform it into a leading global leisure and tourism destination and handle the rapid rise in visitor numbers, Macau is undertaking substantial infrastructure development projects, including the development of airports, maritime projects, railways and roads. The projects will result in rapid economic development across the Pearl River Delta region, and facilitate trade and traffic flow between Macau, Hong Kong and Mainland China.
Macau’s population is close to 600,000 and the country has a very low unemployment rate of just under 2%. The region is facing a shortage of labor in several business sectors, as most of the labor force is already employed due to robust economic expansion since 2003. Macau also imposes restrictions on foreign workers, which adds to the problem. The shortage of labor is expected to hinder the progress of construction in the region, unless the restrictions on foreign workers are eased.
Macau’s residential property market has attracted significant interest from foreign buyers, especially from neighboring countries, as the region is a leading global gaming destination. Regulations for foreign ownership are liberal, and returns from property investment are high.
Macau is investing in the expansion of its healthcare infrastructure to meet rising concerns of its growing population. Macau is investing in establishing a network of elderly care centers, as the region has a low fertility rate and a rapidly aging population; a phenomenon prevalent in several rich and developed economies.
Macau’s economy generates much of its revenue from gaming, tourism and allied services. However, manufacturing and industrial production are expected to record robust growth over the forecast period, due to rising demand for manufactured products including construction materials, with several large infrastructure projects underway in the region, and rising demand from tourists.