2022-09-23-莱坊-Cambodia_Real_Estate_Highlights_H1_2022_13页_2mb

Cambodia Real Estate Summary - H1 2022

Core Content Overview

This document provides a comprehensive analysis of the real estate market in Cambodia, focusing on the office, retail, hotel, and serviced apartment sectors in Phnom Penh during the first half of 2022. It highlights the economic recovery, investment trends, supply and demand dynamics, rental prices, and future outlook for each sector.

Economic Recovery and Investment Trends

• Economic Growth: Cambodia's economy is projected to grow by 4.5% in 2022, with a medium-term rebound expected to 6%.
• Vaccination Success: As of June 30, 2022, 86% of the population had received at least two doses of the vaccine, contributing to economic recovery.
• Foreign Direct Investment (FDI): FDI reached $2.99 billion in H1 2022, with 43% from China. Other key markets included South Korea, Singapore, Australia, Thailand, Malaysia, Japan, and the British Virgin Islands.
• Geopolitical Challenges: The Russia-Ukraine war and ongoing inflation have affected market sentiment, though the long-term fundamentals remain strong.

Office Sector

Key Findings

• Supply Increase: Two new office projects added 57,185 sq m of NLA, pushing the total supply to 838,000 sq m.
• Occupancy Rates: Grade B office space had the highest occupancy at 72%, up 9% YoY. Grade A occupancy was at 63%, while Grade C remained flat at 69%.
• Future Supply: Expected to increase by 682,000 sq m by 2024, with 94% classified as Grade A, indicating a shift towards higher-quality office spaces.
• Market Segmentation: Centrally-owned office spaces are preferred by occupiers, while strata title developments offer immediate cash flow.

Rental Prices

• Grade A: $18–$30 per sq m per month.
• Grade B: $10–$25 per sq m per month.
• Grade C: $5 per sq m per month.

Retail Sector

Key Findings

• Supply Increase: Retail supply grew to 505,398 sq m of NLA, with five new malls opening in H1 2022.
• Occupancy Rate: Average occupancy at 69.6%, with suburban malls achieving higher occupancy (72.8%) than city centre ones (67.1%).
• Future Supply: Expected to reach 1,070,704 sq m by 2024, a 112% increase.
• Market Segmentation: 50% of retail supply is classified as primary, 50% as secondary.

Rental Prices

• City Centre (Prime): $26–$30 per sq m per month.
• Secondary: $21–$27 per sq m per month.

Notable Developments

• K-Mall: A 12,000 sq m retail development with 85% occupancy.
• Big C's Acquisition: Acquired Kiwi Mart, expanding its retail presence.
• Makro's Expansion: Launched its third branch in Chroy Changvar District.

Hotel Sector

Key Findings

• Supply Increase: Total hotel rooms rose to 12,909, up 6% YoY.
• Occupancy Rate: Average occupancy increased slightly but remains below 50%.
• Future Supply: 7,144 rooms are expected by 2025, with 55% classified as Luxury & Upper Upscale.
• District Distribution: Daun Penh (41%), Chamkarmon (21%), Boeng Keng Kang (11%), Chroy Changvar (8%).

Hotel Classification

• Midscale & Economy: 48%
• Upscale & Upper Midscale: 27%
• Luxury & Upper Upscale: 25%

Notable Developments

• New Hotels: Accor opened Tribe Phnom Penh (260 rooms), and The ONRA Hotel (84 rooms).
• Tourism Recovery: International tourist arrivals increased by 394% YoY to 500,000 in H1 2022, though still 88% below 2019 levels.

Serviced Apartment Sector

Key Findings

• Supply Increase: Existing supply rose to 7,695 units, with 407 units added in H1 2022.
• Future Supply: 780 units expected by 2025, bringing total supply to 8,475.
• Classification Distribution: Mid-tier (57%), High-end (26%), Core (17%).

Location Distribution

• Boeung Keng Kang: 32% of supply
• Chamkarmon: 20%
• Daun Penh: 19%
• Others: Toul Kouk (11%), 7 Makara (9%), Chroy Changvar (5%), Sen Sok (3%), Meanchey (1%)

Rental Prices

• High-end: $16 per sq m per month
• Mid-tier: $10 per sq m per month
• Core: $6 per sq m per month

Occupancy Rate

• Average: 61% in H1 2022, up 3 percentage points from H2 2021.

Sector Outlook

• Office: Grade A will surpass Grade B by 2023. Market rents and occupancies may face short-term pressure due to increased supply and subdued demand.
• Retail: Continued growth in supply and demand, with suburban areas outperforming city centres. Online shopping trends may affect long-term demand for physical retail.
• Hotel: Expected to recover slowly due to ongoing geopolitical and health-related challenges. The opening of new airports and the 2023 Southeast Asian Games are expected to boost long-term recovery.
• Serviced Apartment: Demand driven by expatriates and international tourists. Despite challenges, the market is expected to remain strong due to limited international operators and local trends toward serviced living.

Summary

The real estate market in Phnom Penh has shown signs of recovery following the easing of pandemic restrictions and successful vaccination efforts. However, ongoing geopolitical tensions and inflationary pressures continue to affect market sentiment. Office, retail, hotel, and serviced apartment sectors all experienced increased supply, with office and retail showing more pronounced growth. Grade B office and primary retail continue to dominate in terms of occupancy, while the future supply is heavily weighted towards higher-grade developments. The hotel and serviced apartment sectors are anticipated to recover more slowly, depending on the global economic climate and tourism trends.