2.12.09

GREEN light for Macau expansion

Beijing has endorsed a plan for Macau to gain 12 per cent more land through reclamation.
The central government's approval is considered timely to ease the land shortage in the former Portuguese enclave, where property prices now stand as high as HK$6,000 a square foot.
At the centre of the scheme is a housing development that will eventually house more than 100,000 residents and support the city's growth over the next two decades.
Major reclamation will be carried out off the northeast of Macau and along the northern coast of Taipa island. There will be smaller reclamation in the south of Macau, off Nam Van Lake and the outer harbour.
In all, 362 hectares of land will be reclaimed - nine times the size of the West Kowloon Cultural District. Residents have been promised green belts, low-rise housing estates, shopping complexes and public housing - but no casinos.
Macau Chief Executive Edmund Ho Hau-wah has promised a comprehensive consultation over the land use.
Beijing gave the green light at the weekend after nearly four years of consideration. When the Macau government outlined the plan in 2006 it wanted to reclaim 400 hectares. This was revised to 500 hectares last year.
Ho thanked Beijing for its "full support" and said Beijing had asked the city to "reinforce protection of the surrounding environment".
He said the land would "resolve the shortage of land resources, accelerate the construction of a liveable city, enhance people's quality of life and also push forward co-ordinated and sustainable development".
Rapid development in recent decades has seen Macau expand from 17.4 sq km in 1989 to 23.8 sq km in 1999. It now covers about 29.2 sq km.
The city has about 550,000 people - a figure that is predicted to reach 644,000 by 2011.
Macau consists of the Macau peninsula and the two "islands" of Taipa and Coloane. Three bridges link the peninsula with Taipa, while Taipa and Coloane have largely become one large district after the massive reclamation of recent years.
Patrick Ho Wai-hong, assistant professor of economics at the University of Macau, said the latest scheme was badly needed.
"There is a shortage of land for development on the peninsula. Taipa is currently linked with Macau by three bridges which, however, could be closed during typhoons. Therefore, large-scale development on Taipa or Coloane might not be favourable."
Lawmaker Jose Coutinho called for comprehensive public consultation on the planning and use of the reclaimed land. He also wants more low-rental public estates to cool the property market.
But Jeff Wong, a director at property consultancy Jones Lang LaSalle in Macau, said the cooling effect could be minimal because the mega project would stretch over 20 years.
Like Hong Kong, Macau enjoys semi-autonomy under a "one country, two systems" principle. But unlike Hong Kong, it must apply for permission for reclamation because the central government has jurisdiction over waters surrounding the city.

Ng Kang-chung
Dec 01, 2009
PUBLISHED IN SOUTH CHINA MORNING POST

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