The clamor to kick out all POGOs (Philippine Offshore Gaming Operations) would lead to plunge in rental rates in areas where they are operating.
Amid the growing clamor for the removal of Philippine Offshore Gaming Operations (POGOs) in the country, which have been blamed for the rising criminality, particularly kidnap for ransom, prostitution and drug smuggling, a real estate expert said this could lead to an 80 percent collapse of rental rates.
Leechiu Property Consultants said office rental rates could drop from 55 percent to 80 percent if the Marcos administration decides to kick out the remaining legitimate POGOs in the country, according to business blog site, Bilyonaryo.
In a recent report, Leechiu said the Bay Area office towers would bear the brunt of the POGOs’ full exit with rentals expected to plunge to as low as P300 per square meter from its peak of P1,500 per square meter in 2019.
It cited that in 2019 rental rates per square meter in the Bay area hit P1,500 now down to P600and after full exit this would further plunge to P300; for Makati from P1,500 in 2019 to P900 in 2022 to P700 once they fully exit; in Alabang, from P1,000 to P600 (2022) to P300; Cavite from P700 to P400 (in 2022) to P250 after full exit; Ortigas Center and Mandaluyong from 900 to P600 (2022) to P300 with full exit.
POGOs have occupied a combined 1.7 million sqm of office space in 2019 but tightening regulations from China and Philippine authorities, plus the pandemic, have shrunk the industry footprint by nearly 40 percent to 1.05 sqm.
Some government officials, lawmakers and public interest groups have lobbied the government to kick out all POGOs in the country due to a wave of crimes perpetrated by a few rogue industry players.
The Department of Finance and Philippine Amusement and Gaming Corp. (Pagcor) have addressed the main public concerns on the rise of POGOs and influx of Chinese staff such as income tax payments, workers permit registration, higher franchise fees, and self-policing in the industry.
Pagcor has already cancelled the franchises of lawbreaking POGOs while the police have cracked down on the crimes these few bad apples have perpetrated.
Tags: #POGOs, #rentalrates, #losses