Macau continues to demonstrate the lasting benefits of its gaming-driven economy. The city once again launched its “Cash Sharing Scheme” this year, granting MOP 10,000 to every permanent resident. Since the liberalisation of its gaming industry in 2002, Macau has transformed into a tourism powerhouse with explosive growth in property prices—rising more than tenfold within a decade. This economic transformation has become a case study for cities developing integrated resorts (IRs), particularly for investors eyeing opportunities in Japan.
Japan’s first integrated casino resort is scheduled to open in Osaka in autumn 2030. Co-developed by MGM Resorts International, ORIX Corporation, and a consortium of Japanese investors, the resort involves an estimated JPY 1.8 trillion (USD 12 billion) investment. It is expected to attract over 20 million visitors annually, create more than 150,000 jobs, and significantly stimulate the local property market. By examining Macau’s past, we can anticipate the economic and real estate ripple effects that Osaka may soon experience.
Macau: How Gaming Unleashed a Property Boom
In 2002, the Macau SAR government ended the STDM monopoly by introducing a casino licensing system that allowed foreign operators such as Wynn Resorts and Galaxy Entertainment Group to enter the market. This bold move sparked rapid economic development and led to a surge in real estate demand.
Before this policy shift, Macau’s economy was sluggish, and property values remained low. In 2001, the average housing price was around MOP 5,000 per square meter, with weak demand in the second-hand property market. However, following the gaming industry’s liberalisation and the influx of foreign capital, Macau’s economy entered a high-growth phase by 2004.
Casino revenue soared from MOP 20 billion in 2002 to MOP 300 billion in 2012, positioning Macau as one of the world’s largest gaming hubs. This growth had a profound impact on real estate. By 2012, residential prices averaged MOP 50,000 per square metre, a tenfold increase in just ten years. Areas near casino resorts, such as Cotai Strip, witnessed prices exceeding MOP 70,000 per square metre. This price explosion was driven by heightened demand, limited land supply, an influx of foreign workers, and economic prosperity. Macau’s real estate boom remains a prime example of how gaming can transform urban housing markets.
Osaka IR Project: Over a Decade in the Making with Strong Future Potential
Japan’s IR journey began in the early 2010s, but progress was slow due to legal complexities, public opposition, and concerns over gambling addiction. The COVID-19 pandemic further delayed the initiative by severely impacting global tourism.
Nevertheless, in 2021, the Japanese government passed the IR Implementation Act, paving the way for Osaka’s Yumeshima Island Casino Resort. With operations set to begin in 2030, this will be Japan’s first fully licensed IR. The project is backed by MGM Resorts and ORIX Corporation and marks a major milestone in Japan’s tourism and investment strategy.
According to the Osaka Prefectural Government, the IR is projected to generate JPY 1.14 trillion (USD 7.6 billion) in annual economic impact, boosting Osaka’s GDP by around 5% and creating over 150,000 new jobs. Annual casino revenue is expected to reach JPY 400–500 billion, with additional income from hotels, convention centres, and entertainment venues. The project aims to draw 20+ million domestic and international visitors per year.
24/7 Operations to Drive Housing Demand and Economic Opportunities
The integrated resort’s around-the-clock operations will create a massive need for staffing across entertainment, hospitality, and infrastructure sectors. Osaka’s prefectural estimates forecast 150,000 direct and indirect jobs in roles such as casino & entertainment operations, hotel services and maintenance, conference and exhibition logistics and public transportation and support infrastructure.
This influx of employment will attract 30,000 to 50,000 new residents, especially to Yumeshima and its surrounding areas. As Yumeshima currently lacks residential properties, nearby neighbourhoods will be key in accommodating this growing population, significantly boosting local housing demand.
Yumeshima Real Estate Prices and Growth Potential
Yumeshima remains in early development, but its surrounding districts, particularly Konohana Ward, offer real estate at a relative discount compared to central Osaka. In 2023, the average price per square metre in Konohana Ward ranged from JPY 500,000 to 700,000, nearly 50–70% lower than areas like Umeda and Namba.
With the casino resort set to launch and supporting infrastructure improving, Yumeshima’s surrounding areas are widely expected to appreciate. Experts forecast that property prices may rise 30–50%, with values near Yumeshima potentially exceeding JPY 1 million per square metre.
New Development Highlight: Nanko Hana Terrace, Le Jade
To meet future housing demand driven by the IR, smart investors are eyeing new developments near Yumeshima. One standout project is Nanko Hana Terrace, Le Jade, offering strategic affordability and location advantages.
Key Features of Nanko Hana Terrace
- Located just three train stops from Yumeshima Casino Resort
- 5-minute walk to Nakafuto Station
- Positioned in Nanko Chuo 5-Chome, ideal for rental demand
- 14-story building with 55 family-friendly 3-bedroom units
- Units sized 63–81 square meters, all south-facing with unobstructed park views
- Fully furnished and move-in ready
- Price per square foot as low as JPY 42,000–61,000 (HKD 2,200–3,200)
- Current selling price between HKD 1.5 million to HKD 2.8 million
- Cost-effective entry point before property values surge
As Osaka’s IR development moves forward, rental demand and property values in surrounding areas are poised to rise, making Nanko Hana Terrace a compelling investment choice for early movers.
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