The discontinuation of Macao’s satellite casinos has resulted in substantial decreases in the value of properties that previously accommodated these gaming venues. Estimates cited in local and gaming media suggest that prices have fallen by between 30 percent and 60 percent.
Property firm Savills noted that the satellite casino closures have directly impacted both the properties themselves and the adjacent retail zones, particularly within the ZAPE district. Franco Liu, managing director of Savills in Macao, was quoted as saying that the magnitude of the fall in value varies, depending on the value that gambling activities had contributed to a given property.
The consultancy’s analysis indicates that properties associated with the most successful satellite casinos have endured the steepest devaluation. Conversely, properties connected to less profitable casinos generally recorded smaller, yet still significant, drops.
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Savills also discovered a corresponding effect on nearby commercial spaces. Rents and prices for surrounding shops have fallen by up to 50 percent from their peak. Retailers with a strong link to gambling, such as jewellery and pawn shops, have seen the sharpest downturns, while essential businesses like pharmacies and supermarkets have been relatively less affected.
Casino-dependent merchants are unlikely to maintain previous rental agreements when their leases are up for renewal, according to Savills. Some are predicted to close, while others may seek lower rents, scale down their businesses, or shift towards retail focused on daily needs as the demand driven by the gaming sector recedes.
Billy Song, president of the Macao Responsible Gaming Association, shared this view. “Since the satellite casinos ceased operations, foot traffic in those areas has clearly declined,” Song told Asia Gaming Brief. “Hotels and restaurants located in the same buildings are still operating, but the overall flow of people is not what it once was.”
