Macao had not developed as a major settlement until 1535, when Portuguese traders had obtained the rights to anchor ships in Macao's harbors and to carry out trading activities, though not the right to stay onshore.

Having obtained temporary permission in 1552 or 1553 to erect storage sheds onshore in order to dry out goods drenched by sea water, they had soon built rudimentary stone houses around the area now called Nam Van.

The Portuguese establish a permanent settlement here in 1557, paying an annual rent of five hundred taels of silver.