POGOs driving PH real estate market
By Angelica Ballesteros, 09-21-2018
PHILIPPINE offshore gaming operators (POGOs) continue to buoy
the real estate market and are now considered one of the key
drivers of residential and office property sales.
In a briefing on Thursday, Ortigas & Co. Chief Operating
Officer Thomas Mirasol said the real estate developer was seeing
robust interest for residential projects from gaming firms.
"For residential developments, the POGO market probably
represents one of the newest and most significant changes in the
real estate industry," Mirasol said during a media roundtable
conducted by Lamudi Philippines.
"The growth in the POGO industry … has [contributed]a lot of
take-up for residential units," he added.
Michael McCullough, managing director of KMC Savills, Inc., said
this was being supported by POGO take-up of office spaces.
Citing company data, McCullough said the POGO industry took up
400,000 square meters (sqm) of office space in 2017 and added
another 400,000 sqm in the first half of 2018 alone.
"So, 800,000 sqm in the last two years and if you estimate, five
sqm per person-that's 160,000 people-potentially working in these
facilities … that's how you can quantify it," McCullough added.
KMC Savills data also showed that total office vacancy
rates dropped to 3 percent in the second quarter of 2018 from the
4.2 percent a year earlier, with POGOs contributing to the vacancy
decline after taking a foothold in Alabang and Makati.