The upcoming opening of the MGM Cotai integrated resort is expected to boost leasing demand in Macau as more foreign gambling executives will flock to the city, the South China Morning Post reported today citing real estate specialist JLL.
The consultancy also expects a rise in rentals as a result from the upcoming launch of the hotel and casino complex. JLL experts point out that evidence of future increase in rent prices can already be spotted as rates at certain residential properties have begun rising.
For instance, the One Oasis development, located in the southern part of the Cotai Strip, has seen rentals go up 5% as some of the future MGM Cotai employees have already arrived in Macau and have taken up residence. The integrated resort will employ a number of managers from the United States, Hong Kong, and Southeast Asia.
Analysts believe that the arrival of more expatriate staff members will create leasing demand for up to 1,000 new units.
At present, rents at the One Oasis development start from HK$9,500 per month for a 640-square-foot flat and go up to HK$12,500 for a 1,200-square-foot unit, the South China Morning Post reports. According to analysts, the prices could go up further 5% next year, when the integrated resort opens doors.
However, JLL experts warn that given the fact around 1,500 new units will be added to Macau’s leasing market in 2018, rentals growth in the administrative region could face some pressure as the year progresses.
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