The average price per square meter for office units fell by 10% in the first quarter of 2025 compared to the previous quarter, reaching MOP 58,652. The number of transactions dropped by 40%, with only 18 deals recorded, according to data from the Statistics and Census Service (DSEC).
Chris Wong, president of the Macau Real Estate Agents Association and executive director of the Haoliwoo real estate agency, attributes this drop to several factors, including the government’s decision to stop leasing private properties and move public services into government-owned buildings, as he told PLATAFORMA.
He also highlighted the impact of new gaming sector regulations introduced in 2022: “The new law requires each operator to make a significant amount of non-gaming investment over the next ten years. As a result, each operator has cut office rental expenses. For example, Galaxy and Melco shut down their training centers previously located in private buildings.” According to Wong, current office rental prices are now below those recorded in 2019, prior to the COVID-19 pandemic.
He also stated that current rental prices are significantly lower than in 2023, with vacancy rates exceeding 10% in many areas of the city. “Certain areas are showing even higher vacancy rates, including NAPE at 12.2%, ZAPE at 13%, and Praia Grande at 13.1%. Even Class A office buildings, which are higher-end, now have vacancy rates above 10%,” he noted. “This situation, with vacancy rates above 10%, was unheard of before 2019,” he emphasized.
Mark Wong, head of the Valuation and Risk Advisory Department at JLL in Macau, told PLATAFORMA that the slow economic recovery and the government’s ongoing withdrawal from the private office market are the main factors affecting demand.
“In the last quarter of 2024, the office vacancy rate in Macau stood at around 12.2%, an increase from 11.5% in the fourth quarter of 2023, following economic challenges,” he pointed out. Although “rents, prices, and office vacancy rates have begun to stabilize,” values remain “very low,” the JLL representative explained.
Fewer Businesses, Fewer Rentals
Another factor affecting the market is the decrease in the number of newly registered companies, with demand now driven mainly by cost-reduction relocation needs. In 2024, a total of 4,555 new companies were registered in Macau, representing a 9.1% year-on-year decrease, while 1,098 companies closed during the same period, a 19.6% increase from the previous year, according to official data.
According to the JLL Macau Office Index—based on a set of 17 buildings tracked quarterly—office rental values saw an annual drop of 4.5% in 2024, with Class A offices experiencing an even steeper decline, with rental values falling 6% since the end of 2023. Mark Wong noted that “most tenants have adopted cost-containment strategies,” including “maintaining or lowering rents or moving to smaller offices when their leases expire.” “In extreme cases, some tenants may close their Macau office and consolidate operations in other business hubs such as Hong Kong or Singapore,” he added.
The JLL representative also pointed out that several public office construction projects nearing completion may release additional space into the private market as more government departments vacate rented properties. However, he warned that “if the economy does not improve, Macau’s office market will face significant pressure in terms of absorption.” He further stressed that one of the main ongoing challenges is the lack of new companies, businesses, or capital entering the market.
Chris Wong offered an even more pessimistic outlook, estimating that “Macau’s economic conditions are unlikely to improve in the coming years.” “The office market will continue to see falling sale and rental prices. If prices keep dropping, banks may begin foreclosing on loans, which is a serious concern given that over half of office property owners currently have bank loans,” he cautioned.
“After COVID-19, many SMEs experienced worsened cash flows. If prices keep falling, banks could force some companies to repay loans, disrupting the cash flow of a large number of SMEs. This could lead to layoffs, non-renewal of leases, and reduced investment, creating a vicious cycle,” he concluded.
