SET:SIRI +0.5%HOSE:VHM -1.2%SGX:C09 +0.1%PSE:ALI +1.5%HOSE:NVL HALTEDNEW LTV RULES IN BANGKOKSINGAPORE ABSD RATE HIKEHCMC METRO LINE 1 DELAYED 6MOSET:SIRI +0.5%HOSE:VHM -1.2%SGX:C09 +0.1%PSE:ALI +1.5%HOSE:NVL HALTEDNEW LTV RULES IN BANGKOKSINGAPORE ABSD RATE HIKEHCMC METRO LINE 1 DELAYED 6MO
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CONFIDENTIAL
ID: PH-2024-POGO

Commercial Void: The Aftermath of the POGO Ban in Metro Manila

AUTHOR: Director M. CastelloDATE: 2024-02-18

The Policy Shock

The total ban on Philippine Offshore Gaming Operators (POGOs) has triggered an immediate exodus of high-paying commercial tenants, particularly in the Bay Area (Pasay/Parañaque) and Makati off-CBD zones. POGOs previously accounted for up to 15% of occupied Grade B office stock.

Impact Assessment

  • Office Vacancy: We project Metro Manila vacancy rates to breach 22% by Q3 2024 as POGO occupiers surrender leases.
  • Residential Collateral Damage: The "POGO Dormitory" market—condo units rented en-masse for staff housing—is collapsing. Secondary market rental rates in affected buildings have corrected by -40% QoQ.
Strategic Advisory: Landlords with significant exposure to "grey market" tenants must urgently pivot to BPO-friendly compliance standards (PEZA accreditation) to attract replacement tenants.

Reference Materials

END OF DOCUMENTCONFIDENTIALITY NOTICE: This document is for the intended recipient only.