When the entire island of Luzon was placed under an extended community quarantine to stop the spread of the deadly COVID-19, fewer buyers sought for homes, and fewer sellers were willing to offer their properties. Property prices fell for the first time in five years in the Philippines because of the COVID-19 outbreak and a decreased demand from Philippine Offshore Gaming Operators (POGOs). The effect of the Pandemic and POGOs operation on the sales in the Real State in the Philippines is that it significantly decreased brought on by the stay-at-home orders (NCR). We will therefore explore deeper the effects of POGO in the Philippines especially its real estate market in the Philippines.
What is POGO?
Philippine Offshore Gaming Operators, or POGOs, are businesses that only offer foreigners access to their online gaming services. Authorized players who have a registered gaming account with POGO are eligible to take part in these games of chance, which employ a network or software.
Do POGOs have rules and regulations?
POGOs must comply with the rules and regulations outlined in the Offshore Gaming Regulatory Manual in order to operate in the Philippines. To do so, they must obtain a license from the Philippine Amusement and Gaming Corporation (PAGCOR). Those running without a PAGCOR license are regarded as unlawful.
The prohibition against Filipinos participating in POGOs sites while they are physically present in the Philippines may be the rule with the greatest impact on them. In the Philippines and other countries where internet gaming is restricted, all POGO websites are forbidden.
All foreign employees of offshore gaming licensees and their service providers, regardless of the nature of their employment, are required to have a tax identification number under Republic Act 11590, also known as An Act Taxing POGOs, which was approved by President Duterte last year. The penalty for breaking this law is P20,000 for each foreign national who doesn’t have a tax identification number.
What is the effect of POGOs on our Philippine economy?
Executive Order 13 of 2016 was signed by President Rodrigo Duterte, opening doors for POGOs in the Philippines. Since that time, the sector has flourished and had a notable impact on the economy. POGOs have made significant sums of money in just three years since the Philippines began to take advantage of the prospects presented by the online gaming industry. Its expansion throughout the nation has surpassed several industries, including real estate. POGOs gave a huge effect on the rental rates for homes close to CBDs and increased demand for commercial real estate in the Philippines. The region has benefited recently from increased demand for office and residential space as a direct result.
What is the effect of POGO in the real state of the Philippines?
Beginning of the pandemic…
Due to the pandemic and economic unpredictability, the most recent Consumer Expectations Survey (CES) revealed that consumers had a low preference for real estate. The residential real estate price index (RREPI) for the Philippines fell 0.4 percent to 131.2 in the third quarter from 131.7 in the corresponding period previous year, according to data from the Bangko Sentral ng Pilipinas (BSP). Since the series’ inception in Q1 2016, the Real state market has never experienced negative year-over-year growth, according to the BSP.
The country’s commercial real estate market is anticipated to experience increased activity this year, led by the industrial and logistics sectors as well as new prospects in the data center sector as the office market recovers. Overall, the real state market in the Philippines is predicted to have a good year because of the effect of the expected expansion of the economy due to POGOs. According to KF senior director of Occupier Solutions & Services Morgan McGilvray, “We do expect to see some POGO demand this year 2022, but we also expect that demand to be much much less than what we saw pre pandemic from 2017 to early 2020,” He said. The real estate services company predicted that in addition to traditional assets like offices, the upcoming generation of real estate services will also contain non-traditional income-producing assets including infrastructure, energy, data centers, and parking spaces. Real estate services also anticipate that pent-up demand from overseas investors will impact the boost of real estate activities in the Philippines in 2022 as borders reopen for POGOs and other businesses.
Why is this the perfect time to invest with BRIA Homes?
Everyone desires a higher income. Perhaps despite your hard work, you feel that your income is insufficient. In both good and poor economic times, the real estate sector has proven to be a wise choice for investments. You can utilize it to safeguard the funds you’ve laid away for your future and the future of your family. More Filipinos are entering the real estate market, claims Dr. Karen Remo, the managing director of New Perspective Media Group said, “Purchasing real estate, has quickly gained cultural acceptance in the Philippines since it is seen as a safe and secure way to amass riches”. The value of real estate appreciates or rises over time, unlike the worth of other items like cars and gadgets. The desire for housing has persisted over time since it is still a basic requirement. Consequently, this is the main factor that causes Bria’s house and lot packages to appreciate in value over time.
Making these assets rentable is one of the most common strategies to earn from your real estate investment. Your real estate assets that aren’t being utilized right now can be effectively given a purpose through this method. If you would like to be a real estate investor, and you plan to buy a house and lot that you intend to keep as an investment or for the use of your family or your children in the future, don’t make it sit empty and unoccupied for a long time, turn it into a rental property as an additional source of income. People who are interested in running a rental business like to invest in the best residence they know. Although it may appear pricey, doing this will pay off in the long run.
Bria Homes offers high-quality and reasonably priced housing to everyday Filipinos. One of the most reliable businesses in the Philippine real estate sector has been Bria Homes. Since its founding, Bria Homes Inc. has placed a high priority on the creation and development of affordable, moderately priced homes and lots as well as affordable condominium apartments.
As we all know POGOs establishments can be found in different parts of the country. Places like Cavite, Olongapo, Subic Bay, Clark Pampanga, Mandaue, Manila, Quezon City, Mandaluyong, Makati, Las Piñas, and Pasay. Did you know that we also have BRIA HOMES properties in these areas? It’s easy. You can inquire in the official website, messenger, and other social media platforms of “Bria Homes, Inc.”. After that, a digital marketing associate will contact you and help you in your journey in owning a new house and lot or condominium that you can use for your rental business. It’s incredibly simple to apply for a Bria Home. You may be able to purchase the homes that Bria Homes is offering by obtaining a mortgage loan from your preferred bank. You can get a Pag-IBIG housing loan or a bank housing loan, such those provided by Allbank, PNB, UCPB, BDO, and others, to purchase your first or new Bria home. Bria Homes will help you every step of the process, no matter which type of housing loan you select from the options offered. You can get virtual tours on the Bria website whenever it’s most convenient for you. Use your laptop or mobile device to view the genuine splendor of the Bria community.
You may also read: Rental Property Tips for Your Bria House and Lot, 5 Ways to Make Your House and Lot an Income Property, Bria House and Lot: Get to know the different types of Real Estate Investments
Written by MC Sanchez