7moon23On the 14th, Philippine President Ferdinand Marcos Jr. announced the closure of online casinos targeting Chinese gamblers, a move that is expected to leave a large amount of office space vacant, triggering a sharp drop in Philippine real estate stocks.
The Southeast Asian country's real estate index fell by as much as2.6%, hitting the biggest drop in a month.DoubleDragon Corp.and its real estate investment trusts led the decline, falling the most11%and10%。
Other major developers includeSM Prime Holdings Inc.、Filinvest Land Inc.、Ayala Land Inc.、Megaworld Corp.andRobinsons Land Corp., and the stock prices also fell by more than2%The benchmark stock index also slipped slightly.
This ban could have a significant impact on the real estate industry becausePOGOsof the country’s total commercial office space demand11%,according toUnicapital SecuritiesAnalystWendy Estacio-Cruzexpress."However, this is lower than last year and2019Peak of the year25%We believe this will impact the overall market sentiment for real estate stocks."She told Bloomberg.
SM Prime HoldingsChief Financial OfficerJohn Ongtold Bloomberg that the company does not expect the ban to have a significant impact. He noted,POGOService providers currently account for only 1% of the office space available for rent1%to2%, lower than before the epidemic8%。OngExpress confidence in renting out vacant space to other businesses.
