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Knight Frank (Cambodia) Pte Ltd
16B, 16th Floor Canadia Tower
315 Ang Duong Street Sangkat Wat Phnom
Khan Daun Penh
Phnom Penh, Kingdom of Cambodia
Cambodia
T: +855 023 966 878
F: +855 023 986 648

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Knight Frank, the independent global property consultancy, today released its third publication for their Market Highlights Report series, providing insight across Phnom Penh’s commercial and resident

03 August 2016
Knight Frank, the independent global property consultancy, today released its third publication for their Market Highlights Report series, providing insight across Phnom Penh’s commercial and residential sectors for H1 2016.
 
Commercial Sectors
 
The completion of Exchange Square by Hongkong Land, scheduled for the end of 2016, is expected to add significantly to the Grade A office space, which has been experiencing higher demand for the past 6 months with Vattanac Tower’s occupancy steadily approaching 50%. Demand for prime office space is forecast to increase in the medium to long-term as various bilateral agreements come to fruition, which are expected to increase the flow of investment into the Kingdom.
 
A surge in Japanese investment entering Cambodia is expected to have a significant impact across all real estate sectors, with Aeon Mall’s announcement of their second retail investment as part of their expansion scheme into the ASEAN region. Meanwhile, Hotel Okura and Starts Corporation have each announced a hotel development, which are now at various stages of the development pipeline.
 
Mixed-use developments offering stratified retail and office space, as well as purpose-built hotel buildings available for sale are slowly capturing the market’s attention, and are expected to provide investors a much needed opportunity to diversify going forward given the imminent glut in the residential sector.
 
Rental prices in the serviced apartment sector showed a 7.2% decline YoY, due to increasing competition from the completion of more serviced apartment and condominium projects. Rents are expected to face continuous downward pressure as more projects approach completion starting from the end of 2016 continuing through to 2020. 
 
Residential Sector
 
A 35.8% decrease QoQ in average asking prices per square metre in newly launched condominium developments shows a shifting condominium landscape with developers of large-scale condominiums targeting the low to middle-income market, which could potentially spur domestic demand. Meanwhile, revived interest from Singaporean, Taiwanese and Hong Kong property buyers restores investors’ confidence in an increasingly volatile foreign market.
 
Mr Ross Wheble, Country Manager of Knight Frank Cambodia, highlights, “Developers are examining the market more carefully and are realising how much the real estate sector has changed within a three year period. With a lot at stake given the amount of FDI that has flowed into the real estate sector - US$2.9 billion (15% of total FDI) over a period of 20 years starting from 1994 –investors are now recognising market research as an integral part of the development process.”
 
For further information, please contact:
Ross Wheble, Country Manager, Knight Frank Cambodia
ross.wheble@kh.knightfrank.com +855 23 966 878
 
Sofia Perez, Manager, Research & Consultancy, Knight Frank Cambodia
 
Rachel Loke, Head of Public Relations & Communications, Asia Pacific, Knight Frank Asia Pacific
rachel.loke@asia.knightfrank.com+65 6429 3587 @knightfrank
 
About Knight Frank
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank, together with its US alliance partner, Newmark Grubb Knight Frank, operate from 440 offices, in 58 countries, across six continents and has over 13,000 employees. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit knightfrank.com.