Real estate is one of the solid investments in the pandemic’s direct hit. The price does not drop easily. Unless you can’t afford to pay your rent, people who rent don’t immediately leave. However, I think online gambling can be a risk for real estate in the Philippines today. Many of Manila’s mid and high-end condominiums are rented by many Chinese working in online gambling. Office rental demand has exceeded the BPO footprint in just a few years.
The expansion of many online casino companies and the accompanying increase in the number of employees have stimulated strong rental demand. In addition, the demand for real estate purchases has increased, and it has come to be purchased rapidly not only for investment but also as company housing. This is a well-known fact to people involved in real estate.However, it has been revealed here that it is a double-edged sword. The rapid rental demand by non-Filipino foreigners is not very healthy. The bubble-like state of regulated industries lacks stability. In other words, depending on the relationship with China and the way of thinking of the administration at the time, there is concern that the regulations will be strengthened or changed. This is exactly the case this time.
The government sought a flinching tax on the offshore online gambling operator, but it was repulsed. Sands Group announced its withdrawal from the Philippines. The government collects taxes from where it can be taken to secure the financial resources needed to combat the coronavirus. The government does not draw because it becomes a valuable financial resource. In addition, changes in the attitude toward China have been seen in the conflict between China and India and the issue of the Nansha Islands. The trend of online gambling is a big problem for Philippine real estate. Since the government has also maintained its bullish attitude, the withdrawal of online gambling may accelerate in the future. Real estate agents have to watch the move.
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