Last updated November 7th, 2019.

Macau often lives in the shadow of nearby territories. Almost anyone would consider starting a business in Hong Kong or mainland China before investing in Macau.

However, this former Portuguese colony has some strong points that even its larger neighbors cannot claim.

Perhaps you’re familiar with Macau because of its casinos. The Chinese Special Administrative region surpassed Las Vegas way back in 2007 to become the world’s top gambling destination.

Nowadays, Macau’s gaming sector brings in over 7 times Las Vegas’ revenue – a truly amazing figure.

This rapid growth naturally helped its economy thrive over the past decade. Macau’s GDP rose by more than 20% in both 2010 and 2011 which made it the world’s fastest growing market at that time.

Macau’s reliance on its gambling and tourism industries means Macau’s growth isn’t stable or consistent though.

For example, Macau’s GDP plummeted by 21.5% back in 2015 when China began a crackdown on corruption. The economy picked up since then and is currently growing at double digit rates once more.

Our question today is: why should you invest in Macau? After all, Macau doesn’t have an equity market. Nor are there anywhere near the amount of business opportunities as in Hong Kong.

The territory’s population of barely 600,000 is under 10% of its more dynamic neighbor. Would you rather start a business in a place with a few hundred thousand people… or several million like cities right across the border from Macau?

With all that said, there are some reasons why you might want to consider investing in Macau – especially its real estate market.

Freehold Property Ownership in Macau

It’s rather easy to overlook that Macau is the sole part of China which allows freehold property ownership. Locals and foreigners are both able to own Macau property on a permanent basis.

Compare this to mainland China where all land is technically owned by the state. Land in Hong Kong is on a lease which expires in 2047, although locals believe the government will renew all leases at that time.

Of course, nothing is certain – especially given Hong Kong’s current political situation.

Real estate prices in Macau are only about half Hong Kong’s too. They’re by no means cheap at US$14,000 per square meter on average. Granted, we’re comparing that to the most expensive city in the world.

Yet not every plot in Macau is freehold. Make sure to carefully read what you’re buying before signing any contracts.