A ban on POGOs could still cause a dent, but gone are the days of the property market being 'ultra-dependent' on POGOsthese enterprises have been gaining political traction. But from an economic perspective, could a ban on POGOs hurt the property market that it once caused to thrive?
It’s also a far cry from pre-pandemic figures when POGO operations were at its peak. At one point, POGOs were a main driver of leasing demand in Metro Manila. Barranda said that in 2019, POGOs made up “easily a quarter” of demand for office space – around 300,000 square meters or 7 to 8 times what they have today.
“Because their take-up has been negligible, it’s good to also reassess that we’re not ultra-dependent, meaning the market’s still good because other demand drivers are helping the market,” Barranda told Rappler on Thursday, July 11. “It may be a big number, but the cost, particularly the social cost of POGOs are quite high. We are trying to position our country as a legitimate place for business. We are trying to attract investors to come, tourists to come. The least that we want is to have a reputation that criminals are here, things like that,” Balisacan said in a
The exodus of POGOs has already disrupted rent and property prices in the Bay Area, where entire buildings were built and sold to investors looking to rent them out to POGO workers.