The proliferation of offshore gaming operators in Manila (POGOs) has become a major boon for its office and residential sectors and minimizing the impact from the BPO sectors’ slowdown and large influx of office supply. At the end of 2018, there were 56 licenses POGOs compared to 36 back in 2016 while Chinese work permit holders numbered at c.110,000, nearly quadruple compared to two years ago.

Our thoughts: Not only has the surge in POGOs driven up office rents in Manila, the residential market has also benefitted from investors snapping up units to lease to Chinese companies as staff housing. Over the short to medium term, this trend is expected to continue as the country’s maintains its warm ties with China and local regulators continue to grant further gaming licenses.