Once a significant contributor to the economy of the country, the Philippine Offshore Gaming Operator (POGO) industry, is now witnessing a rapid decline, profoundly affecting Metro Manila’s real estate sector. At its peak, the POGO industry contributed approximately ₱34.7 billion to the Philippine economy, including ₱10.9 billion in real estate taxes, underscoring its substantial impact on the housing market.
POGOs occupied about 10% of Metro Manila’s office space, significantly influencing commercial real estate. The influx of foreign workers led to increased demand for residential units, prompting developers to construct more high-rise condominiums to meet this need.
However, concerns over illegal activities such as human trafficking, financial scams, and money laundering led to stricter government regulations and a crackdown on POGO operations. During his State of the Nation Address (SONA) in July 2024, President Ferdinand Marcos Jr. announced a total ban on POGOs, citing their involvement in severe crimes.
Following this directive, authorities ordered foreign workers in offshore gaming hubs to leave the country within two months, affecting approximately 20,000 individuals, mostly Chinese nationals.
This sudden pullout has left the condo market teetering. Leechiu Property Consultants reported that the president’s ban on POGOs prompted a vacancy of about 50,000 square meters of office space. As a result, total vacancies reached 378,000 square meters in Q3 of 2024, a 21% year-over-year increase.
With landlords struggling to fill empty units, rental prices in some districts have dropped significantly, creating opportunities for local renters and buyers.
The POGO pullout is among several factors influencing Metro Manila’s housing market. Rising interest rates have made mortgage loans more expensive, discouraging property purchases. The post-pandemic shift to remote work has also led some residents to seek more affordable housing outside the National Capital Region.
While the decline in property values poses challenges for developers, it presents opportunities for prospective buyers and renters. Lower prices and more flexible payment terms have created a buyer’s market in Metro Manila.
Renters, in particular, can now negotiate better lease terms in areas previously dominated by POGO tenants. As the real estate sector adapts to these changes, industry experts remain hopeful that the market will eventually stabilize, driven by new investments, government policies, and evolving housing demand dynamics.
