Die is cast: Opening of MGM China’s new casino on Cotai Strip to boost Macau leasing market
Rents to increase as many expatriates will be employed by the casino
The opening of MGM China’s US$3.4 billion resort on the Cotai Strip in January 2018 is expected to boost leasing demand as more expatriate executives start living in Macau.
MGM Cotai, comprising 1,390 hotel rooms and almost 31,000 square feet of meeting space, will considerably increase the number of MGM’s employees in the former Portuguese colony known for its string of high-profile casinos.
MGM China, co-chaired by billionaire Pansy Ho Chiu-king, the daughter of gaming tycoon Stanley Ho Hung-sun, employs close to 6,000 people, 75 per cent of whom are from Macau. The opening of MGM Cotai will easily double that number.
The mega development, which took five years to build, could create leasing demand for between 500 and 1,000 units from casino staff, said Thomas Lam, head of valuation and consultancy at Knight Frank in Hong Kong.
“The demand will come from the soon-to-be opened resort’s operational staff, such as expatriate managers who usually come from Las Vegas in the US, Hong Kong and Southeast Asia,” he said.
With expatriate staff accounting for one third of the casino’s workforce, all new or semi-new developments in Cotai will benefit.
In the short term, probably the rent will rise by about 5 per cent next year because of the new hotel opening