CBRE: Major Property Changes in Phnom Penh for Q1 2019

• 16 May 2019
• Local News
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International real estate agent CBRE Cambodia on 09 April 2019 launched its Phnom Penh property market review report featuring changes within the office, residential, retail, and landed property sector.

As the market now focuses more on the office sector, the reports highlight that over the three-month period, supply of centrally-owned offices increased by 9,180 square metres while supply of strata-title office increased by 19,812 square metres due to the completion of Diamond Twin Tower. Occupancy rates saw an increase of 0.6% q-o-q for centrally-owned offices.

Moving next is the residential sector with condominiums seeing an increase in supply of 7.69% q-o-q, adding another 1,091 units to the market, which is being driven by the affordable segment with about 89.3% during the first quarter of 2019. In addition, five new projects were launched during the same period, four of which are in the affordable segment. The Phnom Penh Star added another 1,169 units to the supply pipeline.

For the retail sector, CBRE highlighted that supply was hampered due to the delay of two projects with a total of 19,965 square metres while rental prices across different retail formats saw a downward adjustment with prime space ending the quarter at US$29.4 square metres per month. Vacancy rates remained at a 10-year low. The sector also saw new launches, including 1,870 square metres of retail space from Chief Tower.

Meanwhile, the new addition of the landed property sector saw Sen Sok district holding most boreys with 45 projects while Chroy Changva district is gaining popularity amongst mid-range to high-end developers for future projects. Flats and link houses are the most popular unit types among the five different types with average prices ranging between US$101,144 per unit and US$108,505 per unit respectively.

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