Retail rents in the NAPE district fell sharply in the first quarter of this year, with industry players warning that the decline could mark the beginning of a wider downward rental cycle across the city, according to Statistics and Census Service (DSEC) data.
Average retail rents in NAPE dropped 8.1% quarter-on-quarter to MOP655 per square meter, the steepest decline among all districts. Overall, the citywide average retail rent stood at MOP467 per square meter, down 1.2% from the previous quarter.
Other districts recorded mixed movements. Rental levels in Ngan Fai and Horta e Costa fell 2.4% and 1.1% to MOP306 and MOP443 per square meter, respectively, mainly due to new leases signed at lower rates. In contrast, rents in the Central district and Areia Preta/Toi San rose 1.2% and 0.7% to MOP656 and MOP439 per square meter.
Property sector representatives told Macao Daily News that the market continued to show a clear divergence between tourist zones and residential areas. Tourist districts benefited from a steady recovery in visitor arrivals, with vacant shop units being absorbed more quickly and landlords maintaining stronger bargaining power.
However, residential and older districts continued to face pressure from weak local consumption and shifting spending patterns, with businesses increasingly undergoing consolidation. Older neighborhoods such as San Kio and Barra were particularly affected, with rental prospects described as weaker.
In NAPE, the impact of the full withdrawal of satellite casinos at the end of last year has become increasingly evident. The reduction in foot traffic has weighed on leasing demand, despite government efforts to introduce periodic events to attract residents and visitors to the area. Industry sources noted that such initiatives provided only temporary boosts, with conditions returning to previous levels once events concluded.
As existing leases expire, some tenants are relocating while others are seeking rent reductions, adding further downward pressure on the district’s rental market.
Outside retail, office and industrial segments also recorded declines. Office rents fell 1.5% quarter-on-quarter to MOP274 per square metre, while industrial rents dropped 2.2% to MOP117.
Compared with the same period in 2025, office, industrial and retail rents declined 5.3%, 4.7% and 3.4%, respectively.
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