MANILA – The country’s office property market will continue to benefit from the presence of Philippine offshore gaming and outsourcing sector (POGO), real estate service firm KMC Savills said on Wednesday.
“I think the POGO phenomenon is here to stay. The POGOs are able to make an incredible return on money for a very, very short of time so that continue to take up large amount of office spaces particularly in the Bay Area, and now see them expand in Quezon City, as well as in Cebu and Clark,” KMC Savills managing director Michael McCullough told reporters.
McCullough pointed out that the Bay Area is transforming rapidly into a district that can rival established submarkets like Makati central business district (CBD), Bonifacio Global City (BGC) and Ortigas Center.
He said the business process outsourcing (BPO) and knowledge process outsourcing (KPO) sector, as well as the multinationals, will continue driving demand for office spaces in BGC.
“Office rents are expected to accelerate in 2019 at 5 to 6 percent range especially with tight vacancies in major submarkets, except for Quezon City,” he added.
KMC Savills reported that overall average rent in Metro Manila accelerated further, hitting 5 percent year-on-year at the end of 2018.
McCullough added that residential and land prices in all CBDs are still expected to increase.
“Our overall expectation for the real estate sector this year [is that] it would be a very, very big year for developers,” he added. (PNA)
