POGOs dominate Philippine office market in 2019 — Leechiu
MANILA, Philippines — Online casinos cemented its position as the fastest growing industry in the Philippine office market, taking up the largest stock this year, Leechiu Property Consultants reported Monday.
Internet-based gambling companies, locally known as POGOs for Philippine offshore gambling operators, occupied 738,000 sqm of office space this year, Leechiu said.
POGO transactions peaked during the second and fourth quarter of 2019, driving demand for office space. According to Leechiu, POGOs have grown 11 times in just four years.
“POGOs typically choose to occupy readily-available supply for immediate use, but some operators are willing to wait a few quarters to a year,” Leechiu said.
POGOs employ more than 100,000 workers — most of whom are from China accommodating Chinese punters overseas.
The influx of Chinese nationals has been pushing up property prices in the capital. Leechiu earlier forecast POGOs to overtake call centers in terms of office demand by yearend.
In the same report released Monday, Leechiu said office take-up by IT-BPM sector decreased to 573,000 sqm this year, 14% lower than in 2018 “due to the lack of readily available office supply and a wait-and-see attitude.”
In Metro Manila, demand from POGOs doubled to 608,000 sqm in 2019 from 296,000 sqm in 2018 while IT-BPM take-up remained steady at 428,000 sqm “owing to the scarcity of offices spaces with tax incentives.”
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