POGO seen driving Phl’s real estate sector

Despite headwinds in earlier quarters, property developers are optimistic the real estate sector is backed by a strong potential for residential, office and commercial spaces.

According to Jet Yu, founder and CEO of Prime Philippines, the Philippine shows no sign of slowing down as it remains a recipient of the foreign investors’ trust amid slower growth in the last quarter.

“The real estate here remains strong, especially in Davao where occupancy is high. I think with the POGO (Philippines Offshore Gaming Operators) operating all over the Philippines, the outlook is that in 2020, the sector will continue to expand,” Yu told reporters in a news briefing in Makati on Wednesday.

“The real estate side is healthy. It has helped drive the retail industry higher. It is still manageable,” Yu said.

While demand drivers for real estate are construction and engineering firms, Yu said the growing number of POGO operators will substantially drive up demand in the coming years.

In the same press briefing, John Aguilar, CEO of Dragon’s Nest, warned that while the Philippines is well-poised to sustain robust growth, it should also work to “future-proof” the real estate sector.

“My outlook is that the cycle by now should have taken us to a downward trend but it was abated by factors such as BPO and POGO sector. Now is that luck or coincidence? I believe some of that, based on the picture, yes but we also have to future-proof our plans in the coming years,” Aguilar told reporters.

“Anytime China says they will stop the (POGO) business or they prohibit Chinese companies from engaging with the Phl in terms of the POGO, then that really creates a snowball effect not just in the real estate industry but in every other industry just because we rely on it so much right now,” he reiterated.

To ensure the sector will sustain stellar growth, Aguilar said the developers and even the government should come up with creative solutions to address the future of the real estate industry.