There have been many real estate developments in Macao as of late, and more and more keep coming.

According to our (Vigers Asia Pacific) report, the number of transacted office units totaled 1,109 units in 2007, up 8.2 percent when compared with the previous year. The office-transaction value for the whole year reached 1.892 billion patacas, representing an increase of 35.5 percent year-on-year.

The annual average capital values for offices witnessed an increase of 14.1 percent over 2006, to 2,065 patacas per square foot in 2007. Office-price growth is likely to be sustained in 2008, with a predicted increase of 15 percent, supported by the booming services sector and limited supply.

Casino development continued to be the main driver in the retail property market. The completion of Wynn Macau's expansion work has added an extra 20,000 sq ft of retail space encompassing 11 new boutiques in the market.

An increasing number of visitors are willing to stay longer in Macao, which has generated more tourist spending in the city. Per-capita spending of visitors for the fourth quarter of 2007 rose to 1,714 patacas, an 8.2 percent increase over the previous quarter. Riding on the continuing tourism boom in Macao, Hong Kong-listed Emperor International Holdings recently invested 430 million patacas to acquire a 3-story commercial and residential block located at the junction of Avenida do Infante D Henrique and Avenida da Prais Grande.

But has the government put any serious thoughts and planning into ensuring the ultimate success of the integration of the grand plan? No doubt that international master planners have been used, top-level architects consulted, comprehensive infrastructure considered and lots of attention has been poured into creating a "quality environment" to harmonize the project with the needs of the Macao community.

The reality is that people in Macao wish that more planning would have taken place during the pre-development stage. The Venetian is a good example. It's an amazing concept - an integrated family resort and gaming complex, plus a world-class shopping mall. To a greater or lesser extent, much of this has been delivered, but did anyone think to build a nice park that extends from the entrance of the resort?

I was fortunate to witness a presentation on a huge mainland development , which was part of an urban-planning process rather than a development plan. I was surprised by the level of thought that went into the re-development stage. For certain, the future residents there will be grateful for the developers and planners who have thought out their living and users' experience.

I am also very impressed by the burgeoning growth of Macao and its increasing population and number of visitors. And most of the developments - office, retail, gaming, hospitality and residential - are grand, to say the least. Unprecedented price hikes are predicted for this year.

So, the time is now to move away from the specifics and deal more with the "experience" that the city is going to offer. As the saying goes, the proof is in the pudding. The ultimate success of the city, in relation to real estate development, will be measured by the sustained demand for residential properties and commercial space, which translates into continually rising values.

The author is the managing director of Vigers Asia Pacific.

(HK Edition 03/19/2008 page3)