Satellite casino exit spurring lease cancellations, says real estate association

The upcoming exit of satellite casinos by the end of the year, many located in ZAPE, has already begun to affect the local real estate market, according to industry representatives.

Chong Sio Kin, president of the Macau General Association of Real Estate, noted that following the announcement of the casino closures, the district has seen a surge in lease terminations and cancellations.

Speaking at the chamber’s anniversary event yesterday, Chong highlighted that the property market showed little growth last year, with an average of 267 monthly transactions in 2024, only slightly above 242 units in 2023.

This stability suggests that the government’s recent easing of property purchase restrictions has had limited impact on boosting sales.

Moreover, data shows a significant decline in property prices.

The average price per square meter of usable residential space in the first half of May 2025 was approximately 69,000 MOP, down more than 20% compared to the same period last year.

This price drop indicates that policy changes have so far failed to halt the downward trend in asset values.

The president emphasized that the real estate sector remains a crucial pillar for Macau’s economic stability and employment, supporting various related industries and providing numerous jobs.

He urged the government to implement more robust stimulus measures to stabilize the market. His recommendations include lowering the down payment requirement for property purchases to 15%, easing investment immigration policies to attract foreign capital, and encouraging skilled talent to settle in Macau.

Simon Sio, president of the District Development Promotion Association, recently told the Times that the government “must thoroughly evaluate the underlying health of the economy to mitigate potential risks hidden beneath these superficial indicators.”

Sio noted that the presence of satellite venues has inflated property valuations beyond normal levels. Consequently, even properties that were previously considered fairly valued may now be at risk of becoming seriously negative assets.a

Three local gaming companies have decided to stop operating 11 satellite casinos and three slot machine halls by the end of this year.  This closure will particularly affect the ZAPE area in Macau, where six of the satellite casinos are located.