POGOs eyeing strong comeback upon lifting of travel ban — LPC

MANILA, Philippines — Philippine offshore gaming operators or POGOs are expected to make a strong comeback once the travel ban is lifted, according to Leechiu Property Consultants (LPC).

“POGO is our friend, more than our enemy,” said David Leechiu, president of LPC.

He said demand for office space is expected to hit 800,000 square meters to one million square meters by yearend despite the expected negative impact of the coronavirus disease 19 or COVID-19 on the economy.

In an online press briefing yesterday, Leechiu said the continued demand for office spaces is expected to sustain the real estate industry in the Philippines this year.

“Leasing activity will resume and catch up in August,” Leechiu said.

The brokerage company recorded 157,000 square meters of office transactions in the first quarter, down by 47 percent year-on-year.

“Nevertheless, there are 636,000 sqm of live requirements being transacted today, and we expect this demand to grow by another 25 percent,” he said.

The transactions in the pipeline are expected to be completed beginning in the second half of 2020, Leechiu said.

He noted the increasing interest in the Philippines from multinational corporations in China.

Leechiu said the IT-BPM industry would remain resilient as multinational companies worldwide seek to “aggressively cut costs and increase production in a climate of falling revenues.”

The PEZA supply in 2020 “is grossly low” or seriously deficient compared to the most conservative demand of the IT-BPM sector.

To support their potential growth, the industry needs to be supported by having more PEZA zones throughout the country, he said.

On the supply side, Leechiu said it is unlikely there would be a glut because there will be a slowdown in construction arising from the COVID-19 enhanced community quarantine.

“Thus, we are recalculating 2020 Philippine supply and reducing it by 44 percent to 842,000 sqm from our initial 1.498 million sqm,” he said.