Irreversible: Pogos make ph world’s 3rd biggest office space market
The surge in the number of Philippine offshore gaming operators (POGO) has made the Philippines the third biggest office space rental market in the world.
Some 1.2 million square meters of office space were leased in 2019 with demand in the first half of 2019 already hitting 775,000 square meters.
“It is fascinating and it is irreversible,” says David Leechiu, CEO of Leechiu Property Consultants.
Demand for real estate in the Philippines has been outstripping supply across all sectors from Metro Manila to the provinces, pushing prices up.
“Real estate values have seen all time highs across all sectors in 2019,” Leechiu adds.
The highest land value in the Philippines is now at P1.5 million per square meter in Bonifacio Global City in Taguig and the most expensive condominium unit now costing P600,000 per square meter.
This is higher than that in the Philippines most exclusive residential enclaves which are at P350,000 to P450,000 per square meter.
Since 2016, POGOs have been the fastest growth driver in the Philippine office market, pushing expansion even in Laguna, Pampanga, and Cavite.
POGO workers from China are behind the rapid growth in leasing demand for residential condominium units in Metro Manila. Rates in the Bay area have jumped by 80 percent from three years ago, with property owners getting paid two years in advance.
“The picture looks really good. There’s a lot of stock meeting this demand,” Leechiu adds.
POGO office demand reached 253,000 square meters in the first of 2019 or a third of total demand. This is roughly equivalent to the business process outsourcing-information technology market with a demand of 284,000 square meters during the same period. Total demand for office space reached 775,000 square meters in the first of which 86 percent were are in Metro Manila. Leechiu expectsPOGOs to overtake BPO-IT firms by end of 2019.