The real estate industry in the Philippines has survived a slow 2017 with the entry of offshore gaming operators. Still, these people have helped the sector remain afloat this year.
Their impact manifested with rising prices of residential properties in Metro Manila. In nearby provinces, master-planned communities such as Lancaster New City Cavite have captured the attention of aspiring property investors.
Most of the licensed Philippine offshore gaming operators (POGOs) come from China. Their arrival in the country means that migrant workers will require office and living spaces. Employees choose residences near their place of work, causing the prices in these areas to increase because of the uptick in demand.
The central business district of Makati, for instance, has been a popular choice since it’s close to the Bay Area and the airport. Quezon City and Taguig are also cities where some developers have specifically designed offices for POGOs.
The POGO Effect
While higher prices due to the entry of POGOs favor sellers and investors, the opposite applies to residential property buyers. The Bangko Sentral ng Pilipinas said that home prices as of June 30 rose by 5.1%.
The Residential Real Estate Price Index showed mixed growth in Metro Manila. Condominium prices increased by the end of the first half; the value of single detached houses and duplexes fell, too. This only indicates that high-rise living has become more popular in the region.
Individuals might find it easier to buy properties in nearby provinces outside Metro Manila, where prices have become too expensive for most buyers due to the influx of many foreign companies. If you can afford it, however, a real estate investment in the metro can be a winner given the strong demand from POGOs.