Multiple factors have contributed to a decline in the valuation of commercial properties

 out25

Jacky So emphasized that the downturn in Macau’s real estate market is closely linked to the restructuring of the gaming industry.

“VIP players have nearly disappeared, replaced by mass market and premium mass market players. Their bets are nowhere near as large as the former VIPs,” he said.

In the past, top mainland VIP players would place bets worth tens of millions in Macau’s casinos, creating wealth for many locals. Their capital also flowed into Macau’s real estate market, driving up property prices consistently. Today, as the gaming industry shifts toward a healthier, mass market-focused model, the real estate sector – once reliant on capital inflows from VIP players – has lost its strong support.

Multiple factors have contributed to a decline in the valuation of commercial properties: the rise of mainland residents’ “northbound consumption” trend (spending in mainland cities or in the Greater Bay Area) and the upcoming year-end closure of satellite casinos. Worse still, the broader real estate downturn has led to a sharp drop in the value of commercial assets such as hotels.

For example, The 13 Hotel was sold for HK$600 million (US$77 million) in 2025 – a fraction of its 2024 asking price of HK$2.4 billion (US$309 million).

https://asgam.com/2025/09/30/downward-spiral/


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