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MARKETVIEW

Cambodia
Part of the CBRE affiliate network

Phnom Penh, Q1 2016

International developers
driving land price appreciation
Prime Office Rent

Prime Apartment Rent

Average High-end Condominium Price

$22.7/SQM

$21.9/SQM

$3,195/SQM

Prime Retail Mall Rent

$34.8/SQM

*Arrows indicate change from previous quarter.


HIGHLIGHTS

O V E R VI EW

US$1.65bn invested in construction over Q1,


compared to US$448m in Q1 2015, representing a
significant Y-o-Y increase of 267%.

The Phnom Penh property market witnessed a

Hongkong Lands mixed-use development, Exchange


Square, due to top out by Q2, with overall completion
set for Q4 2016.

significant increase in developer activity over the first


quarter, with a total of US$1.65bn invested in
construction, compared to US$448m in Q1 2015,
representing a notable Y-o-Y increase of 267%.
Land prices across principal districts, while expected

Average sales and rental prices broadly appreciated


over Q1, with the exception of shopping mall rents,
due to challenges faced by ageing retail stock in the
context of upcoming supply.
Sorya Shopping Center, one of Phnom Penhs first
purpose built shopping malls, announces renovation
and rebrand as Sorya Center Point.

to stagnate towards the end of 2016, appreciated by


an average of 4.8% over the first quarter, with prices
in Chroy Chang Va and 7 Makara districts rising by
8.8% and 8.3% Q-o-Q, respectively.
A total of 4,158 condominium units, across 8
projects, were announced during Q1. This compares
to 2,573 units, across 7 projects, in Q1 2015,

4,158 condominium units, across 8 buildings,


announced over Q1.

representing a Y-o-Y increase of 61.6%. Average


condominium sales prices, across all grades,
appreciated by 4.1% Q-o-Q, with off-plan high-end

Figure 1: Phnom Penh Land Price Index (2010-Q1 2016)

prices rising by 5.7% over the first quarter.

350

Limited new supply came on-stream over Q1, with 3

Q1 2010 = 100

300

office buildings collectively adding 17,260 sqm of

250

leasable space to modern Phnom Penh stock. Overall

200

occupancy dipped marginally by 1.5 PP Q-o-Q, with


Grade B and C office rents rising by 1.3% and 2.6%

150

Q-o-Q, respectively.

100

While no new retail supply was delivered over the

50

first quarter, Sorya Shopping Center, one of Phnom

0
2010

2011

2012

2013

2014

2015

2016 Q1

Chamkarmon

Daun Penh

7 Makara

Toul Kork

Sen Sok

Chroy Chang Va

Penhs first purpose built shopping malls,


announced renovation works, with the mall due to
relaunch as Sorya Center Point. Parkson Phnom
Penh City Center, currently under construction, is

Source: CBRE Research, Q1 2016


Q1 2016 CBRE Research

now scheduled to launch in Q4 2016.


CB Richard Ellis (Cambodia) Co., Ltd 2016 |

M A R K E T V I E W PHNOM PENH CONDOMINIUM Q1 2016

Cambodia
Part of the CBRE affiliate network

I N T ER NATI ONA L D E V E L OPER S D R I V I N G


P H NOM P E N H C O N DOMI NI U M S U P P L Y

Future Phnom Penh condominium supply is set to


be principally driven by the arrival of international

Figure 2: Phnom Penh Condominium Supply by Origin of Developer


(2008-2018F)
25,000
20,000

developers, with units delivered by companies from


Taiwan and China (including Hong Kong) forecast

15,000

to account for approximately 28.5% and 18.5% of


total stock by the end of 2018, respectively.
The majority of planned condominium projects fall
into either the mid-range or high-end categories,

10,000
5,000
0

due to account for 44% and 36% of overall supply

2008 2009 2010 2011 2012 2013 2014 2015 2016F 2017F 2018F

by the end of 2018, respectively.

Cambodia

South Korea

Taiwan

Malaysia

Singapore

China

Japan

Source: CBRE Research, Q1 2016


U P L I F T I N F I R S T Q U A R TE R S A L E S P R I C ES
ACROSS ALL GRADES

Figure 3: Average Price Per Sqm of Phnom Penh Condominiums


(Q1 2015-Q1 2016)
$3,750

Average sales prices continued to rise over the


course of Q1, with high-end condominiums seeing

$3,250

the greatest appreciation, demonstrating growth of


5.7% Q-o-Q.

$2,750

The average price of mid-range condominiums,

$2,250

both in terms of existing stock and off-plan sales,


rose by 2.6%, with sales prices of affordable stock

$1,750

returning to growth, appreciating by 3.8% Q-o-Q,


following a fall of 1.4% over the previous quarter.

$1,250
Q1 2015

Q2 2015
Affordable

Q3 2015

Q4 2015

Mid-Range

Q1 2016

High-End

Source: CBRE Research, Q1 2016


N O T ABL E R I S E I N P R O J E C T L A U N C H ES I N
B O T H P R I M E A N D S E C OND AR Y D I S T R IC TS

While the traditionally prime residential area of


Chamkarmon saw the greatest volume of
condominium units launched for sale off-plan, with
a total of 2,900 units accounting for a 70% share,
secondary locations, such as Chroy Chang Va and
Mean Chey, accounted for 4.9% and 9.6% of total
units announced, respectively, over Q1.
Further significant condominium and mixed-use
schemes are due to launch, across predominately
secondary locations, over the course of 2016 and
2017.

Figure 4: Number of Off-plan Condominium Units Announced by District


(Q1 2015-Q1 2016)
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Chamkarmon

Daun Penh

7 Makara

Toul Kork

Chroy Chang Va

Sen Sok

Por Sen Chey

Mean Chey

Source: CBRE Research, Q1 2016


Q1 2016 CBRE Research

CB Richard Ellis (Cambodia) Co., Ltd 2016 |

M A R K E T V I E W PHNOM PENH OFFICE Q1 2016

Cambodia
Part of the CBRE affiliate network

Figure 5: Phnom Penh Office Supply by Grade (2008-Q1 2016)

O C C U PANC Y F A L L S M A R G I NA L L Y I N
C O N TEXT O F R E C E NTL Y D E L I V ERED S T O C K

SQM (NLA)

280,000

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

240,000
200,000
160,000
120,000
80,000
40,000
-

The overall occupancy rate for office space


stands at 74.4%, representing a fall of 1.5 PP Qo-Q. A total of 17,260 sqm, predominately Grade
C, leasable space was delivered over Q1,
accounting for the slight drop in overall
occupancy levels in a context of expanding
demand from both domestic and international
occupiers.
As of Q1 2016, over half of modern stock would

Grade C

Grade B

Grade A

be considered Grade C quality by regional levels,

Occupancy Rate

accounting for 56% of total leasable space.

Source: CBRE Research, Q1 2016


Figure 6: Average Quoting Rental Rates (USD/SQM/Month)

Q U A L ITY P H N OM P E N H O F F I C E S P A C E
S E E I NG S U S T AI NED R E N TAL R A T E G R O W TH

2016 Q1
2015

Average rents, across both CBD and non-CBD


locations, appreciated over the first quarter, with

2014

25

20

15

Grade B (CBD)

10

Grade B and C rents rising by 1.3% and 2.6% Q-

2013

o-Q, respectively.

2012

Quoted rents for Grade A space remained stable


0

Grade B (Non-CBD)

10

Grade C (CBD)

15

20

25

at approximately US$28 per sqm, exclusive of


service charge.

Grade C (Non-CBD)

*Exclusive of service charge

Source: CBRE Research, Q1 2016

Figure 7: Strata-title Supply/ Average Price by District (Q1 2016)

S T R A TA-TI TL E P R O J E C TS D R I V I N G O F F I C E
S U P P L Y P I P E L INE

SQM (Net)

35,000

$4,000

30,000

$3,500

25,000

$3,000
$2,500

20,000

$2,000

15,000
10,000
5,000

A total of 5 office projects, available for sale


through long leasehold or strata-title tenure, are
under construction as of Q1. All launched their
off-plan sales over the course of 2015 and are set

$1,500

to collectively deliver approximately 84,000 sqm

$1,000

of net space by 2019.

$500

$0

Chamkarmon
Grade A

7 Makara
Grade B

Toul Kork

Average Price per Sqm

Average prices, across all projects, stand at


US$3,475 per sqm, with Grade A and B space
accounting for a 46% and 64% share of future
supply, respectively.

Source: CBRE Research, Q1 2016

Q1 2016 CBRE Research

CB Richard Ellis (Cambodia) Co., Ltd 2016 |

M A R K E T V I E W PHNOM PENH RETAIL Q1 2016

Cambodia
Part of the CBRE affiliate network

F L A G S H I P R E T A I L S C H EMES S E T T O

Figure 8: Retail Supply by Type (2007-2018F)

C O M PL ETE O V E R C O M I NG 1 2 M O NTH S

SQM (NLA)

700,000
Retail supply in the capital is set to rise
significantly by the end of 2018, driven by a
combination of new international shopping

600,000
500,000

complexes and significant retail components

400,000

within predominately residential and mixed-

300,000

used schemes.

200,000

Parkson Phnom Penh City Center, comprising

100,000
0

57,000 sqm of leasable space, is now scheduled


to launch in Q4 2016, with Hongkong Lands
Exchange Square on-track to deliver 8,000 sqm

Shopping Mall

of leasable retail space in Q1 2017.

Community Mall

Retail Podium

Other Retail

Source: CBRE Research, Q1 2016

A G E I N G R E T A I L S T O C K C H A L L ENG ED I N
C O N TEXT O F U P C O MI NG S U P P L Y

Rents remained broadly stable over the course of


Q1, with the exception of rents across purpose
built retail malls, which declined marginally by
1.6% over the course of the first quarter. This
trend will likely continue as retailers review their
requirements in the context of upcoming
developments due to be delivered over the
course of the coming 12 months.

Figure 9: Quoting Rental Rates by Type (Q1 2016)


$90.00
$80.00
$70.00
$60.00
$50.00
$40.00
$30.00
$20.00
$10.00
$-

$52.5

$48.3
$30.8

Prime Shopping
Mall

$29.8

Prime Retail
Podium

Prime High Street

Rental Rate Range

Prime Retail
Arcade

Average Rental Rate

Source: CBRE Research, Q1 2015


I N T ER NATI ONA L B R A N D S E Y E P R I M E

Figure 10: Prime Retail Uses (Q1 2016)

R E T A I L L O C ATI ONS

Financial&&Professional
Professional
Financial
Food
Food& &Beverage
Beverage

Financial and Professional Services uses,

Fashion & Accessories

occupying 33.2% of prime high-street and 9.2%

Entertainment&&Leisure
Leisure
Entertainment

of prime mall space, continues to dominate

Electronics
Electronics

prime retail locations, in addition to Food and

General
StoreStore
General

Beverage uses, accounting for 25% of retail mall

Automobile
Automobile

and 14.2% high-street retail space, respectively.

Health/Medical
Health/Medical
Book/Stationery
Book/Stationary

2016 is set to welcome a wave of new

HairHair
& Beauty
& Beauty

international brands, with active requirements

Other Other

for both prime shopping mall and high-street


locations driven principally by Food and

40% 30% 20% 10% 0%

0% 10% 20% 30% 40%

Shopping Mall

High Street

Beverage/ Fashion and Accessories retailers.

Source: CBRE Research, Q1 2016


Q4 2016
2015 CBRE
CBREResearch
Research
Q1

CB Richard Ellis (Cambodia) Co., Ltd 2016 |

M A R K E T V I E W PHNOM PENH SERVICED APARTMENT Q1 2016

Cambodia
Part of the CBRE affiliate network

G R A D E C S E R V I C ED A P A R T MENTS D R I V I NG

Figure 11: Serviced Apartment Supply by Grade (2010-Q1 2016)

NEW SUPPLY

5,000
Serviced apartment supply increased by 5.6%
4,000

over Q1, with an additional 246 Grade C serviced


apartments bringing total stock to 4,645 units.

3,000

The majority of serviced apartment stock is

2,000

currently considered to be of Grade C or below


1,000

standard, collectively accounting for 71.6% of all


units, with Grade A and B quality apartments

0
2010

2011

2012

Below C

2013

Grade C

2014

Grade B

2015 2016 Q1

accounting for 19.9% and 8.5% of total units,


respectively.

Grade A

Source: CBRE Research, Q1 2016

P R I M E S E R VI C ED A P A R T MENT R E N TS H O L D

Figure 12: Rental Rate Range by Bedrooms, Type / Grade


(USD/Month Q1 2016)
Grade A

20

USD/SQM/Month

Grade B

USD Per Month


8,000

25

S T A B L E O V E R F I R S T Q U A R TER

25

6,000

15

4,000

10
5

00 0

0
PH

Rental Range Per Month (Grade A)

apartment stock range from US$500 Per

20

Calendar Month (PCM), for a one-bedroom

15

Grade B apartment, through to US$8,000 PCM

10

2,000

Rental rates across prime Phnom Penh serviced

for a flagship penthouse unit, as of Q1 2016,


with no significant change noted from the
previous quarter.

0
1

PH

Rental Range Per Month (Grade B)

Average rates per square meter range from


US$13.30, based on Grade B penthouse units,
through to US$21.80, based on Grade A one-

Average Rent Per Sqm

bedroom units.

Source: CBRE Research, Q1 2016


Figure 13: Supply and Occupancy by District (Q1 2016)

S E R V IC ED A P A R TMENT S T O C K L O C ATED I N
P R I M E R E S I DENTI AL D I S T RI C TS

3000

100%

2500

80%

The overall occupancy rate of serviced

60%

apartments stands at 85.6%, as of Q1, across all

2000
1500

40%

1000

20%

500
0

0%

grades and districts.


The majority of Phnom Penhs existing serviced
apartment stock is located in the capitals key
districts of Chamkarmon and Daun Penh,
collectively comprising 61.4% and 18.7% of total

Below C

Grade C

Grade B

Grade A

Occupancy

supply, respectively

Source: CBRE Research, Q1 2016

Q1 2016 CBRE Research

CB Richard Ellis (Cambodia) Co., Ltd 2016 | 5

M A R K E T V I E W PHNOM PENH Q1 2016

Cambodia
Part of the CBRE affiliate network

http://www.nationmultimedia.c
om/aec/UK-Japan-help-inMyanmars-urban-planning30281460.html

For further information, please contact:


Chris Hobden
Manager
+855 95 777 484
chris.hobden@cbre.com

Muyngim Lim
Analyst
+855 98 331 771
muyngim.lim@cbre.com

Sambath Phal
Analyst
+855 92 791 750
sambath.phal@cbre.com

CBRE Cambodia,
9th Floor, Phnom Penh Tower
#445 Monivong Blvd
Boeung Prolet Quarter
7 Makara District
Phnom Penh, Cambodia.

T+855 23 964 099


F+855 23 964 088
cambodia@cbre.com
www.cbre.com.kh

To learn more about CBRE


Research, or to access
additional research reports,
please visit the Global Research
Gateway at
www.cbre.com/researchgateway.

Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy,
we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and
completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be
reproduced without prior written permission of CBRE.

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