Property sector seen weathering potential POGO ban | ABS-CBN
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Property sector seen weathering potential POGO ban
Property sector seen weathering potential POGO ban
MANILA - A consultancy firm played down the potential impact on the property sector of a possible total ban on Philippine Offshore Gaming Operators or POGOs.
MANILA - A consultancy firm played down the potential impact on the property sector of a possible total ban on Philippine Offshore Gaming Operators or POGOs.
Leechiu Property Consultants Commercial Leasing Director Mikko Barranda said some POGOs have started vacating offices despite the expansion of a few companies.
Leechiu Property Consultants Commercial Leasing Director Mikko Barranda said some POGOs have started vacating offices despite the expansion of a few companies.
The firm’s Property Market Update in the Philippines showed 75,000 square meters of office space or 10 percent of the industry share is occupied by POGO during the first half of 2024.
The firm’s Property Market Update in the Philippines showed 75,000 square meters of office space or 10 percent of the industry share is occupied by POGO during the first half of 2024.
However, the numbers are down from 88,000 square meters of office space occupied by POGOs in the same period last year. Office occupancy by POGOs peaked in 2019 and became the largest demand driver for office space, according to Barranda.
However, the numbers are down from 88,000 square meters of office space occupied by POGOs in the same period last year. Office occupancy by POGOs peaked in 2019 and became the largest demand driver for office space, according to Barranda.
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“If they abandon the office completely, of course, that’s a large contraction that people will need to find ways as to somehow fill up because they’re still quite heavy in terms of the amount of space they have in the market,” Barranda said.
“If they abandon the office completely, of course, that’s a large contraction that people will need to find ways as to somehow fill up because they’re still quite heavy in terms of the amount of space they have in the market,” Barranda said.
In terms of residential occupancy, the departure of POGO from the country is seen to affect the Bay Area, Alabang, and Makati, Leechiu Research and Consultancy Director Roy Golez said.
In terms of residential occupancy, the departure of POGO from the country is seen to affect the Bay Area, Alabang, and Makati, Leechiu Research and Consultancy Director Roy Golez said.
“They have vacated residential condominiums. They will likely also start to or they have started selling these residential condo units. It’s a large supply. If the POGO sectors are to shrink further, it will negatively impact these locations,” Golez said.
“They have vacated residential condominiums. They will likely also start to or they have started selling these residential condo units. It’s a large supply. If the POGO sectors are to shrink further, it will negatively impact these locations,” Golez said.
But POGOs are no longer the biggest driver of lease space this year, Barranda said, adding that demand in the IT-BPM, traditional offices, and government offices picked up.
But POGOs are no longer the biggest driver of lease space this year, Barranda said, adding that demand in the IT-BPM, traditional offices, and government offices picked up.
Office demand in the first half of 2024 is up by 24 percent compared to 2023 on the back of the increase in leasing activity in these sectors.
Office demand in the first half of 2024 is up by 24 percent compared to 2023 on the back of the increase in leasing activity in these sectors.
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“We see some growth, but not as the same growth,” Barranda said.
“We see some growth, but not as the same growth,” Barranda said.
Meanwhile, the residential market remains upbeat as sales are up by 6.5 percent for the second quarter of 2024 after a decline in the past three quarters.
Meanwhile, the residential market remains upbeat as sales are up by 6.5 percent for the second quarter of 2024 after a decline in the past three quarters.
Despite granted residential real estate loans (RREL) slipping by 9 percent during the first quarter, RREL outside Metro Manila rose by 2 percent.
Despite granted residential real estate loans (RREL) slipping by 9 percent during the first quarter, RREL outside Metro Manila rose by 2 percent.
The company expects robust residential demand outside Metro Manila driven by infrastructure projects such as the New Manila International Airport and expressways leading to the south.
The company expects robust residential demand outside Metro Manila driven by infrastructure projects such as the New Manila International Airport and expressways leading to the south.
For hotel, tourism, and leisure, Bohol emerged as the most preferred destination for hotel investments with its steady increase in foreign tourist arrivals.
For hotel, tourism, and leisure, Bohol emerged as the most preferred destination for hotel investments with its steady increase in foreign tourist arrivals.
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Metro Manila, Cebu City, Siargao, and El Nido were also cited as preferred investment locations for tourism.
Metro Manila, Cebu City, Siargao, and El Nido were also cited as preferred investment locations for tourism.
With the Bangko Sentral ng Pilipinas signaling for rate cuts within the year, the consultancy firm is optimistic that the move will strengthen developer and investment activities in the industry.
With the Bangko Sentral ng Pilipinas signaling for rate cuts within the year, the consultancy firm is optimistic that the move will strengthen developer and investment activities in the industry.
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