CBRE Cambodia | Phnom Penh Marketview for Q2 2019
Rainy Season Brings Flood of Affordable Condominium Launches
Highlights
The condominium sector saw a significant influx of new launches, comprising 5,853 units in total, 55.5% of which were positioned in the affordable sector. In addition, the market witnessed 5 condominium project completions totaling 1,393 units, a q-o-q increase of 27.7%. A nominal change in average prices can be seen within the mid-range and high-end sectors, showing a shift of less than 1%. The condominium rents have seen another slight upward correction over the quarter.
The completion of Star City consisting of 20,323 sqm of net leasable area boosted strata-title office supply by circa 51%. The centrally-owned market saw no new completions in Q2 2019. The sector maintained a high occupancy rate of approximately 86.5% a q-0-q uplift of 0.5%. Average quoted rental rates of centrally-owned stock saw a little change within the central business district over Q2 2019, with grade B stock increasing marginally by less than 1%. Non-CBD supply within grade B and grade C saw a substantial rental increase of 4.7% and 4.2%, respectively.
Two project completions within the retail sector increased total stock by approximately 7%, adding 4,881 sqm and 15,084 sqm to community mall and shopping mall stock, receptively. Average rental rates across the retail sector saw a downward adjustment over the quarter. Vacancy rate across the sector saw a minor downward adjustment of approximately 1.1%. Currently, vacancy rates are the lowest in ten years standing at circa 7.9%.
Serviced apartment supply has seen a significant rise since a relatively uneventful 2018, with two projects completing in Q2 2019. Alpha Residence and the View, both located centrally in Phnom Penh. Current average rental rate for studio and 1 bedroom apartment units vary substantially in both the Grade A and Grade B sector. The vast majority of Grade A and Grade B serviced apartment supply is located in the central regions of Phnom Penh. The highest volume of developments are situated within Boeung Keng Kang 1.