Condo prices seen to correct on POGO ban

President Ferdinand Marcos Jr.’s order to ban Philippine offshore gaming operators creates opportunities for local investors to buy residential units at lower prices, according to a report by Philippine News Agency.

Colliers Philippines research director Joey Bondoc said the POGO exodus has already corrected residential prices in the National Capital Region. The vacancy rate, which peaked at 17.9 percent in the fourth quarter of 2021, is now at 17 percent.

“The total banning of POGO will only dampen already slow sales of residential units. It will also worsen the rising vacancy rate and slower growth in prices and rents,” Bondoc said. The vacancy rate could reach 19% with a complete POGO ban.

But he said lower prices could attract local investors. During the POGO boom in 2019, condominium prices soared 10.9% quarter-over-quarter in the fourth quarter. Now, price growth has slowed to 2% to 3% annually. Rents are expected to increase by 2% to 3% from 2024 to 2026.

Developers delivered 11,300 residential units in Metro Manila last year, similar to the 11,700 units completed in 2018 during the POGO surge. Despite the POGO exodus, Bondoc said these new units are likely to be purchased by local investors, especially overseas Filipino workers.