SCUTTLEBUTT

Occupation has started?

Local business owners in Catanduanes plan to relocate as they feel the province is virtually being taken over by Chinese traders.

“I have a small grains store and what is irking me is that competition has seeped into even the micro businesses. And I can confirm that these business owners competing with us are indeed pure Chinese without any Filipino antecedents,” one business owner told Scuttlebutt.

The source added that Chinese interests are involved in various industries.

The Philippine Offshore Gaming Operators (POGO) controversy involving suspended Mayor Alice Guo is just the tip of the iceberg; the Senate hearing has opened a can of worms that must be addressed, he said.

The talk in the province is that foreign groups poured in billions of pesos overnight to control the economy, infrastructure, and local media of Catanduanes, which residents fear has been effectively turned into a Chinese province.

“They have bribed everyone — local officials, law enforcers, local media. How do we stop this invasion? Note the following developments: the Chinese now own a lot of the beachfront; the governor and vice governor are brothers and are pure Chinese married to pure Chinese.”

“Most ships, gas stations, malls, markets, bus firms, cemeteries, resorts, hotels, restaurants, radio stations, tabloids and local papers have quickly become Chinese-owned, with many using Filipino fronts,” the whistleblower said.

Pogo withdrawal syndrome

The impending exit of all POGO by the end of 2024 is rippling through the property sector.

Leechiu Property Consultants (LPC) in a briefing said that in the third quarter 50,000 square meters (sqm) worth of vacancies left by the POGO industry contributed to an increase in office leasing contractions to 378,000 sqm, up 21.5 percent from 311,000 sqm in the same period last year.

Following the contraction, the sector estimates POGO occupancy now only accounts for around 430,000 sqm or three percent of total office space.

Property consultant Colliers estimates vacancies for the office market rising by 2.9 percentage points to 22.2 percent vs last year’s 19.3 percent on the back of the continued exit of POGOs, which would further soften demand for office space and lead to a potential decline in rental rates as well.

Stock brokerage firm AP Securities continues to advise accumulating shares with significant exposure to consumer demand and middle-income residential properties, while avoiding companies that are heavy on office leasing.

Investors should take a heavy bet on the rapid pace of disinflation and real wage growth serving as a catalyst to drive discretionary consumption, which should translate to higher revenues for property developers with exposure to malls and hotels. The continued easing of interest rates should boost middle-income residential sales and reduce the overhang on inventory.

About 70 percent of the remaining POGOs in the country are primarily located in the Bay Area.