EuroCham is pleased to announce their first Cambodia Tax Forum, a special event focused on Cambodia’s evolving tax system.And Realestate.com.kh is proud to be the official "Online Media Partner" for this year's Cambodia tax forum event.The event will open with remarks by H.E. Kong Vibol followed by a full day of expert-led panels.Discussions will include:Changes in tax regime, patent tax, tax registrationKey tax issues for SMEsCommon VAT issuesWithholding taxTax audits and disputesDouble Tax Agreement with Singapore   The panels & presentations will be led by experts from:Bun & AssociatesCambodian Investment ManagementDeloitteDFDLErnst & YoungGrant ThorntonR&T Sok & Heng   Sponsorship packages are available. Cost: Members: 50 USD, non-members: 60 USD (paid at the event) Find out more and sign up today, with Eurocham Cambodia!

Though the road was long and winding, Cambodia has reached new heights in the past decade across many industries - none less, the real estate sector. And along with continuing success, there is also a need to understand how the market is developing in comparison to the region. By studying Cambodia alongside an understanding of similar markets nearby we can better predict the future of the real estate sector, and handle potential problems before they occur.This is according to CBRE Vietnam and CBRE Cambodia managing director, Marc Townsend, who spoke in depth regarding the latest CBRE Cambodia's Marketview Q2 2016 report last week in Phnom Penh.The resounding remark from Townsend was that, “All of us who have been involved in the real estate industry for sometime understand that any market is cyclical. What is happening in Cambodia currently has happened in neighboring markets.”With this sentiment in mind, we can better understand current market conditions in Cambodia - and concepts such as the potential oversupply in the condo market, speculative price growth in Phnom Penh land, and issues regarding credit issues around lending for property - in a context of curb and flow.A downside for the market now offers opportunities down the line as it naturally adjusts itself - and ultimately, a maturing of the real estate market as a whole.CBRE Cambodia’s Marketview for Q2 2016 Recap:The World Bank officially elevated Cambodia to the status of a ‘lower-middle income’ economy at the close of Q2.Hongkong Land’s mixed-use development, Exchange Square, held its topping-out ceremony over Q2, with overall completion set for Q4 2016. Prime sales and rental prices broadly appreciated over Q2, with the exception of serviced apartment rents, which remained stagnant over the quarter. Average quoting rents across Grade B buildings grew by 4.5% q-o-q, while average quoting rents across Grade C stock decreased by 3.9% q-o-q. 2,796 condominium units, across 8 projects, launched over Q2, with Russey Keo district welcoming its first off-plan sales launch. Land & Investment in Cambodia Q2 2016:While foreign buyers are focused on the hottest areas on the market where land prices have reached all time highs, namely central Phnom Penh districts such as BKK and Tonle Bassac, Townsend explains that “the local Cambodian land bankers and landowners are obviously moving in a different trajectory. They’re thinking four to six years ahead.” This is also due to many local buyers being priced out of the downtown market.These local land buyers understand that infrastructure such as bridges, roads and sewage is, and will continue to, drastically affect pricing of land on the outskirts of the city. This has been highly apparent in Chroy Changvar, where land price is rising significantly year on year, at a much faster rate than land in the CBD.Investors targeting the lesser known districts of Phnom Penh that are able to predict these improvements in infrastructure will make large returns in the not so distant future. Given the need for local connections and understanding however, this opportunity remains in the realm of local buyers and agents for the time being.Phnom Penh Residential Market Q2 2016:Although the number of foreign developments are continually growing and expected to contribute to a supply of condominiums of around 25,000 units by 2018, Townsend states that “the local developers are the main players. It may not be that way every quarter. But obviously, the strength and depth of Cambodian developers are growing.”These local developers have a better understanding of the means of the local market buyers, and this is creating more affordable options in the market. These developers often look outside the most expensive corridors of Phnom Penh where, once again, a lesser degree of infrastructure plays a big role in allowing developers to acquire affordable land and ultimately create a more affordable end condo-product. If they are lucky, the infrastructure will come as their project nears completion.Townsend then describes that as the market matures a variety of other property types have been popping up in the Phnom Penh new developments market, such as hybrids, SoHo and smaller units.Mixed-use developments have also made their way to Phnom Penh, a way of developers offsetting their risk in a unit-heavy condo market by combine a mix of retail, residential and commercial options for buyers within a single development.Despite growing competition though, condominium prices have still seen small but steady growth from 2015, up until the second quarter of 2016. It is with this slow growth that Townsend says that, “trajectories have changed from being favorable to the developer to favorable to the buyer.”Townsend explains that if there are no secondary sales from the primary residential market, then it’s a sign that the market’s only going to get worse. Cambodia developers must heed this advice with care.Yet, Townsend notes that it is with this change in trajectory that the serviced apartments market is suddenly playing a much bigger role.As Townsend puts it, “When the residential market dries up or begins to change the trajectory of sales per month or per quarter,” developers begin to look to see if they’re able to convert some of the units to serviced apartment units to cut cost, and assure returns. Townsend notes that the serviced apartment market in Cambodia seems to still be going strong.In regards to the condo market for international investors, Townsend also notes that, “It’s a limited market at the moment. And obviously, at some point, it will come on the radar screen of a wider group of people”. Once Cambodia enters the consciousness of investors around the world, the market has the potential to change dramatically.It seems that so far we have only seen the tip of this iceberg…He emphasizes that it’s important to be out there and getting your story across, and marketing internationally - not just individual developers and agents, but the national as a whole.He adds the need for a diversified investor pool to negate risk across the market: “We need investors from all over the region. Not just from one place. You need to have a balance.” Otherwise, when one set of investors for some reason boycott the market or lose their influence in the country, the market can still be sustained by the overall investor pool.Given Cambodia’s current reliance on condo investors from Taiwan, China and Korea in particular, this word of warning seems highly valid.Phnom Penh Office Market Q2 2016:Townsend mentions that big businesses aren’t as enthusiastic to go to Cambodia for expansion as other markets.He says, “Unfortunately, we’re at that stage where most of the people that are going to be here expanding and upgrading are here already.” So, he doesn’t predict a whole lot of new activities happening in this market.He adds, “The reality is not a lot of those Fortune 500 companies will be coming here. But the ones that are here want to be here.”He also addresses the audience of developers saying, “some of you will be thinking that you can fill your building in a year – not retail, but an office building. When things tighten up and everybody gets the same idea to have coffee at the same time, or go to the lift at the same time, or when the pilot puts the lights on in the airplane to go the bathroom at the same time, the same thing happens in office markets. So, sometimes, some of you may have mistimed it. And instead of taking one year to fill, your building may take three years to fill. This is the reality of real estate and commercial office space in a developing market.”The data gathered by CBRE shows that while supply in the office market has risen drastically – most especially with Grade A office units – occupancy has lowered from 2008. It also shows that the biggest business type occupying these office spaces are the banking & finance and logistics industries, which comes in at 22% and 14%, respectively.Townsend also explains that more and more strata titled office space is appearing in the Cambodian market, and that it’s not necessarily a bad thing - but it is a sort of inflection point because it’s more difficult to handle a strata title building from the developer's perspective.Phnom Penh Retail Market Q2 2016:The retail market is also seeing an increase in supply, mainly with shopping malls, community malls, and retail podiums, where CBRE expects it to only go up even more in the next two years.Their data also shows prime shopping malls, prime retail podiums, prime high street, and prime retail arcade at an average rental rate per square meter of $31.44, $48.3, $30, $52.5, respectively. These developments include the Exchange Square, AEON Mall, and the Naga Citywalk.Townsend says that the market’s maturing, as evidenced by new products like row houses and shop houses. He also says that there is high demand right now for long-term leases that usually comes hand in hand with quality investment opportunities for incoming investors.He says that the Cambodian retail market is slowly gaining traction as well, with the coming of different international brands like Levi’s, Starbucks, Hugo Boss, Long Champ, Salvatore Ferragamo, and L’Occitane.CBRE’s researched data for Q2 2016 shows that these have contributed to the high occupancy rate for the retail segment, where the majority of those who are occupying the space do so for financial & professional prime retail use. It also shows that “26 percent of retailers surveyed identified SEA countries as target markets for 2016.”As a result of this, CBRE is expecting even more construction and expansion for the retail industry.Siem Reap and Sihanoukville Q2 2016:According to Townsend, there are a lot of things happening in Siem Reap and Sihanoukville, in particular, a lot of activities in retail and hospitality. Infrastructure upgrades are also helping shape the two provinces. Just recently, the Royal Railway has restored its services to transport passengers from Phnom Penh to Sihanoukville, for example.He adds, a rising level of infrastructure will, “Obviously drive retail and condo sales, and second home sales.”Some of the properties available here are located in different islands such as Dara Sakor, Song Saa, Koh Rong and Koh Chanloh. But Townsend explains that the current difficulty here is getting people to actually go to these provinces, because there is actually more work that needs to be done in terms of basic infrastructure. But he balances this out and says that prices here are very attractive: Luxury resort villas range in the $2,000 to $3,000 per square meter range, for example.Talking about the competitive pricing in these provinces, Townsend adds, “when developers start to move their total focus away from the primary residential market in the main cities and concentrate on the coast, then obviously where they’re looking for new markets and looking for new product, again you can see this reflected here with that sort of pricing.”Outlook Overall Q2 2016:Townsend also talked about finding new markets that may already be in existence but have just not been captured yet, such as the opportunity to seize the growing interest for retirees.In a report by International Living, Cambodia ranked 21 as one of the best places to retire in the world. Townsend adds, “We’ve got to keep finding new markets, new things, and put some analysis behind it.”One of the sectors that are also being extensively marketed is the industrial sector; where industrial parks and Special Economic Zones are starting to slowly pick up as there is a growing need for increased fit-for-purpose space for factories, according to Townsend.He also mentions that tourism is one of the primary driving forces in Cambodia’s economy, “but you’ve got to get out and market it. You can’t rely on one group. You’ve got to rely on a wider source. And so much of it comes down to that airport. So much of it comes down to infrastructure.” Townsend says that as these things continue to come up across Cambodia, tourism will surely grow.In conclusion, Townsend says that “if you haven’t already started building a retail center, you’re too late. If you’re building Grade A, finish it quickly. If you’re building or thinking about building Grade B and C, just make sure you put enough lifts in, and enough car parks, and enough motorbike spots, because if you haven’t, there’s already enough in the pipeline. If you’re going to build something in the industrial park, you’re probably going to need to heavily spend more money on marketing and be prepared to invest in factory space on behalf of the tenants that hopefully, you can attract either from Europe or North Asia, or indeed, out of China. And if you’re doing a big residential project and it’s got six phases, then look at the resale market.”Be an investor with valuable foresight, stay tuned to Realestate.com.kh news!

Although relatively new to the market, the Phnom Penh-based Land and Houses (Cambodia)(LHC) Group has already established themselves as a standout player in the the Cambodian real estate sector.LHC asserts its presence through five individual companies, each carrying a distinct expertise under their individual brands - yet overseen by the overall group director. The mother company is Land and Houses (Cambodia) Investment Co. Ltd., first established and officially registered with the Ministry of Commerce by Madame Se Lily, an experienced Phnom Penh real estate entrepreneur, in August of 2015. This company specialises in property investment broadly. The other four companies are the Land and Houses (Cambodia) Construction Co., Ltd., Golden Han Fei, Phnom Penh Land Development, and the LHC Architecture.Uniquely, through this network of companies, LHC is able to offer comprehensive services to clients without needing to outsource outside the group.Diversification; the Key to LHC’s Market Offering:With the list of different entities under the LHC umbrella collaborating and consulting with each other, the LHC group is able to offer a range of specialty services that can ensure the group can take property investors, developers and real estate sellers from the start to the finish of their projects, whatever those projects may be.These services include local and international property investment, property development, property consultation and feasibility studies, property and asset appraisals, property management, construction and architectural design. These services are readily available for international, local, and corporate clients. Contact LHC today and find out more!Quality and Excellence; LHC’s merger of International Talent with Local Understanding:Land and Houses (Cambodia) Group also maintains standards of trust and reliability through the use of high-grade materials, high-caliber manpower, and a culture of transparency. This has been achieved by forging joint venture partnerships with vendors from around the region, creating new companies that can draw from international experience, coupled with a firm experience in the local Cambodian market.Managing Director of the Group, Tyler Stuart, is a UK-born real estate and marketing professional with years of experience in the international & local market. Tyler Stuart has a clear focus for the direction of the Group’s companies as a whole, and maintains all staff are aptly specialised, and are driven to reach their personal and company goals.Armed with locally and internationally trained skilled professionals, LHC has already worked on several projects. Their group of researchers, advisers, marketers, analysts, consultants, property agents, and surveyors have collectively used their abilities and knowledge to market, sell and consult developments such as the Borey Varina, Chroy Chongva Residence, Borey Mohasensok, and their most high-profile mixed-development project yet, The Skyline, a 39-storey, 3 tower mixed-use development in central Phnom Penh, covering a total land area of 4,836 square meters. The Skyline boasts a 6-storey car park, and a 3 storey commercial shopping plaza on the ground floors. The project reaches completion in December 2018. LHC is exclusive sales vendor and manager of the Skyline project.Commitment to Follow-through:What sets Land and Houses (Cambodia) Investment further apart from other real estate firms and groups in Cambodia is their unique ability to provide a start-to-finish service, allowing clients to relax and know their property assets are secure.Six reasons why LHC’s service offerings are a cut above the rest include a solid marketing philosophy, a sellable website presentation, a positive and enthusiastic team, immediate buyer leads management, negotiation expertise, and administrative support.They are with you from the start, from purchasing the property and producing feasibility plans, right through to the property management, maintenance and leasing, committed to a long-term partnership with its clients.So, if you’re looking for a one-stop service provider for your real estate needs, whether you are a private seller, current property owner and operator, or a developer looking to launch a Cambodian based project, consider the Land & Houses (Cambodia) Group to assist you through each step of the process.Contact LHC today and find out more!

When it comes to apartment supply, thorough research is needed before investing in properties. You would have to consider the needs and essentials before placing your money into the market, especially with factors like the supply in comparison with the demand. Currently, the increase in supply may mean a significant amount of competition for those seeking to invest in the country. But this might actually be a good thing for buyers at the expense of the developers and investors who have ongoing projects.General Director of real estate company KFA, Nuon Rithy, said that apartment prices dropped between 10 and 20 percent compared to last year due to the influx of supply of apartments entering into the market. This forced some investors to install equipment with low quality, enabling them to lower rent prices. This is especially true for owners of apartments who have not updated their properties in a while. Rithy said, "The market currently is competitive in price, service and quality.” So, investors who do not think about their projected profit will have problems in the future.  He continues to say that “apartments that have not installed swimming pool on the top, no parking and gym are really faced with problems intensified in finding tenants."The General Manager of the company Asia Real Estate, Po Eavkong, backs this up and explains that the apartment market is also competing with the condominium market which has grown rapidly as well. This is because both condominiums and apartments can be used for the same style of living. This is one of the reasons why the margin for the apartment market remains narrow. He added that the rental cost – depending on region and condition – dropped to around 5 to 10 percent.Eavkong warns, "occupancy rate of apartments might have a slight growth this year, but the apartment supply has increased more and more compared to the real demand." He continues, "It's time the apartment and condominium sectors compete from this year, but in terms of the number of apartments currently available, it’s not yet too high."According to the study conducted by Bonna Realty Group last year, the number of apartments in 2015 that were supplied in the market saw an increase of up to about 35 percent compared to 2014, where the number of apartments rose to an estimated 6,000 units.Kim Heang, the president of Cambodian Valuers and Estate Agents Association concurs with the data, and gives further clarity by qualifying that the apartment market has reached the stage of "big fish eat small". This means that old apartments that are 5 to 7 floors in height in BKK1 have to be update their services or risk being demolished to make way for high-rise buildings that will have style design, interior design, equipping services, and material facilities to attract customers. He continues to say, "The current market reached a round that a strong one in this market takes a stance, and the weak will die."However, the consultant chairman of Daily Realty Group Khom Monyroth is not sold on the said idea. He said, "I observed that the occupancy rate of apartments have not changed, especially luxurious apartments in Boeung Keng Kang 1 still have consumers between 90 and 95 percent." He further states that the rental apartment price do not decline in these apartments which are designed with modernity in mind. But he still recognizes that competition in the sector has increased and remains to be a threat.He said that the number of people renting apartments have increased due to investors from Singapore and Japan entering Cambodia this year and because Cambodia has had a more stable start in the ASEAN Economic Community. It is with this that the Cambodian apartment market remains hopeful for its future.Please check out more full condos listings on Realestate.com.kh!This story was featured in the September 2016 print edition of PROPERTY VIEW magazine, produced by the CVEA.Realestate.com.kh is very proud to support the CVEA’s Property View publication. For more information about joining the Cambodian Valuers and Estate Agents Association (CVEA) please click here. And, if you are interested in advertising placement or advertorial in the next edition of Property View Magazine, please contact Mr. Virith via email: virith007@yahoo.com Or call: 078 959 567  or 098 66 26 68

According to recent Khmer Times report, after a year-long feasibility study by the Japan International Cooperation Agency (JICA), the Cambodian government is now seeking $800 million funding in order to undertake development of an automated gateway transit (AGT) system for the capital city, Phnom Penh. An Automated Guideway Transit (AGT) system is an automated, driverless transport system where vehicles are guided along a "guideway" or rail system. Most are rubber tired, but some systems have steel wheels. It is somewhat similar to a SkyTrain, Tram or Monorail system, depending on the design. “Through the evaluation, the AGT is the most flexible system in terms of geometric design among other alternatives such as a metro, monorail, LRT

On the 20th of August 2016, the Cambodian Valuers and Estate Agents Association (CVEA) conducted a public forum regarding "Today’s Real  Estate Industry in Cambodia" at the Sofitel Hotel in Phnom Penh. The discussion-based event was joined by an eclectic group of stakeholders – including property developers, media organizations, real estate agencies, banks, and the general public.In a panel discussion about the “Opportunities and Challenges of Housing development,” Ms. Chan Socheata, the Head of the Office of Business Management Housing Development at the Department of Industry and Finance, said that “everyone needs to posses their own house. So, why do they need to have a legal license? How is it significant or important for the buyer?”What does a condo or borey buyer or investor need to consider regarding the Licensing a development project in Cambodia?Ms. Socheata said that “buyers should ask for more information before deciding to buy a condo and seriously consider whether this project has gotten a legal license from the ministry.”She added that “if the condo and borey project is licensed, it is a really good condition for buyers because licensed projects are guaranteed to be safe for buyers. And if there is conflict, the ministry is also easy to reach for a suitable solution for both parties.”For instance, Socheata notes, there are some buyers who don’t want to pay money to the Borey 999.  Even if this is the issue of the individual, it will affect this licensed project as a whole. So, the committee of the ministry is allowed to help by going to the root cause of the problem and negotiate with the company to get the project owner negotiating with the buyer.Condo and Borey Buyers need to be aware that buying from a licensed project guarantees that:The Ministry has checked whether the condo or borey development has a clear and strong source of income, capital, collateral, land title, and other assets that support their project, especially because project owners need to make a business plan to present to the ministry. The ministry will check whether it’s a good business, and if it can be successful in the future or not.The ministry also often researches the sales strategy of the project, because sometimes a project’s owner does not do an in-depth market analysis with the surrounding market.To obtain the license, the project development company must to have 2% of the total capital deposited in the bank of Cambodia or any commercial bank in Cambodia. Even though this deposit money is a small amount, it shows that the development has its capital. “And it also causes the customer to trust the project too,” Socheata added.   Socheata concludes by saying that “all project developers have to get a license from the Ministry of Economy and Finance. And this is something that any buyer should seriously consider before buying residential properties off plan, whether condo or borey. Keep in mind to ask whether that project has got a license in order to protect your own benefit and not waste money with unnecessary trouble.”Check out the latest Boreys and New Developments on Realestate.com.kh today!

The successful sale of the Oknha Peich Boutique Hotel on 18 February 2016 - prior to construction completion - serves as a celebratory and momentous milestone for Kingsland Global, and the company's Cambodian arm. Slated to be completed in the 2nd quarter of 2017, the hotel was sold to Vivaz Holdings Pte Ltd at US$13.4 million.This early sale is not only an exciting but significant achievement for Kingsland Global, which signifies the company’s firm belief in producing quality projects and moving further into frontier markets.Managing Director Mr. Jeremiah Lee said, "As we align our future plans to fit into Cambodia's changing landscape, we look forward to realizing this exciting opportunity to deliver our standards of excellence and quality to Phnom Penh’s community and the citizens of Cambodia. We look forward to making larger steps with our partners and associates, making Kingsland a leading developer in Cambodia over the ensuing years.”The project is currently in its fitting out phase as it works towards the completion of the 13-storey, 88-room luxurious boutique hotel that the Oknha Peich Boutique Hotel sets out to be. As the project gradually nears its completion date, Kingsland Global is looking forward to every subsequent success and future opportunity that will sharpen and refine its repertoire with the undertaking of every project. Another upcoming iconic development, One18 Residences, is a luxurious 24-storey apartment providing quality living and hotel-like amenities right in the heart of Phnom Penh city. Look forward to a first-class residential experience like none other when the project is completed.For more info on Kingsland in Cambodia, please get in touch with Kingsland (KH); (Address) No. 34 Street 200, Boeung Riang, Duan Penh, Phnom Penh, Cambodia (Tel) +855 77 3399 20, (Fax)+855 23 2217 07/08 or Kingsland Global Headquarters (Singapore); (Tel) +65 6362 8998, (Fax)+65 6363 7031; or email info@kingslandglobal.sg

There are many modern residential homes in Phnom Penh city, whether they are villas, boreys or condominiums. But looking at the different types of properties, it is apparent developers are increasingly interested in building high-rise condominiums that are suitable with the local standards of living and are marketed at this group of buyers, particularly the young and modern Khmer families.Find out more about new developments on Realestate.com.khBut what do the local Cambodian buyers think about living in a Condominium? In terms of the standard of living in Cambodia, the concept of high-rise residential units has already become a trend. As Mr. Vorn Chan Thorn, CEO of Town City, puts it: "If we have sufficient financing and want to have a monthly income, we can buy a condominium in the city for leasing because it is convenient and brings in a fixed monthly income of about $ 1,500." Many people today are also changing the way they think about the standard of living, where comfort and privacy are held in high regard. These are things that those who buy a condominium need, according to businessman Pin Pisey. He says, "I bought a condo a year ago near Sansam Kosal Pagoda. I bought it with a bank loan, and I wasn’t interested in buying it for resale. I like the atmosphere of living like this, it has security and privacy."Condominiums are also now adapting quickly with a more modern and younger generation. Mr. Ros Chesdathepadey says that he’s lived in a condo and just bought a new unit at D' Seaview at Sihanoukville. He adds, "I’ve lived in the Rose Condo approximately 2 years and living with safety, good environment and in the center of town - it is private and there are various services together in condominiums, such as: shopping malls, gyms and swimming pools, all the service in condo very convenient"In contrast, Mr. Mao Sambath said, “I think that condominiums are very nice and offers a modern way of living. However, it is not fit for the Cambodian lifestyle yet. I will not buy a condominium because most of the developers are not trustworthy. Most of the time, they don’t own the land and they use the customer’s money to construct the building. What if the sales aren’t as good as expected? The project would stay still. And who likes a 99-year plan? We need assets for the future generation. Who would not love living life in the heart of the city, above everyone? But condominiums aren’t good investments yet for Cambodians. There are many lands and houses available. I’d rather buy a house and then decorate it nicely. I would not buy a condominium and then worry for the rest of my life about the future of the building, the quality of the building, and all the hidden costs for monthly services.”It seems like there’s a shift happening for the way of life of the locals, and foreigners who come to work or live in the country."The number of housing purchases and loans for condos are more noticeable for both domestic and foreign guests. Locals think it’ easier to live in these types of properties in particular because it’s in or near the center of the city. Foreigners buy them for investment and for residential use", said Heng Sreyneang, the Housing Loan Officer at Canadia Bank.“The Borey Villa Toul Sangke condo project’s concept is focused on helping locals change their standard of living from traditional to a more modern one. It also aims to provide comfort. This residential property is exactly that. It brings a high standard of living.” This is according to Mr. Andy Kong, the general manager of the Borey Villa Sangke company.As a newly-released Century 21 record says there is a total of 110 condo projects with 148 individual buildings, both finished and ongoing, or around 37,570 units slated through to 2020. Will the local market grab the chance to live in these new style of homes? Time will only tell.Find out more about new developments on Realestate.com.kh

Cambodia has been seeing more and more businesses enter the country’s growing economic sphere. This comes as a result of the country’s increasing capacity to entertain an even more dynamic business structure. Specifically, office spaces have been thriving in the property market of late and are one of the aspects that investors have taken great interest in. Chairman of Phnom Penh BG Serviced Offices, Mr. Anthony Galliano, spoke about the current and upcoming trends for office space in Phnom Penh during a recent interview with realestate.com.kh.Is there a need for more office space in Phnom Penh?Grade A office space in Phnom Penh:Having an an impressive run during the first quarter of 2016, Galliano refers to the needs for specific grades of office spaces and confirms that there is a lesser demand for Grade A office properties right now. When asked about it, Galliano comments, “perhaps not A, but for certainly B and C grade, there’s demand out there” - because they are inexpensive alternatives that do not sacrifice much in terms of a company’s specific requirements.Grades B and C office space in Phnom Penh:While both are certainly lower classifications, Grades B and C remain more popular options within Phnom Penh – especially in the central region – because of geographic factors and the availability of this grade of office space, Galliano says. He explains that “there’s certainly office space more on the outskirts of town which is cheaper, but people really prefer to be within the town.” So, prices vary greatly on location.Will the specific needs be addressed for the office space in Phnom Penh market?Galliano is certainly optimistic for office space rentals in the coming years. As the demand rises, the supply will surely follow as well. This is also something that is held on to by Lim Pusithavrith, the leasing management officer of Vattanac Tower. Pusithavrith says that the target occupancy rate of developers for the office space market is at 80 percent, just a few more percent value away from the current 74.4 per cent. And with five more Grade B and Grade C office buildings rising soon, this target does not seem too impossible to reach and even exceed.Investors may want to think of inquiring about possible office spaces they can rent out for additional business income, as long as these spaces are centrally located. However, shortly, they may find themselves looking at properties on the outskirts of Phnom Penh if they need to keep costs down.Find office space in Phnom Penh for rent now!Find office space in Phnom Penh for sale now!

Policies, construction, infrastructure, and population: These have all played an important role in the stages of growth in Phnom Penh. Having been resilient to extreme pressure in the past decade, the city has made for itself a society and an economy that is now conducive for progress.But of course, all success stories share a page in their book with struggles and difficulties. This is exactly what CEO of Cambodian Investment Management, Mr. Anthony Galliano, has pointed out in his interview with realestate.com.kh about how Cambodia has evolved and about what current issues it will have to address in order to move forward in the next few years.In an anecdotal account shared by Galliano, he shares that it was very different a few years back when he arrived in the country. He states that “there was no Canadia Tower, there was no Vattanac Tower” and the country was largely only known to the outside world for the temples of Angkor Wat. But since then, Phnom Penh has sort of reinvented itself into a place that is extremely welcoming to foreigners, building upon the architectural and structural remains of its history. For example, currently 4,017 serviced apartment units make up the body of the capital city and this is continuing to grow. This is far from the less than one thousand units that were available back in 2009. And different types of developments have also been built during this period. Galliano says, “From 2008 till now, it’s just been incredible.” But he also warns that this is also scary for several reasons.Population:While there has been a surge of construction projects for both commercial and residential spaces, Galliano states that the lack of sustainable growth in the Phnom Penh population might soon cause an imbalance in the market and cause an oversupply. It is also important to understand that unlike in Jakarta and Thailand where people flock towards the bigger cities for opportunities, Phnom Penh does not have that component. At least, not yet. Income Status:Even with the recent announcement of the World Bank that Cambodia is now a lower middle class income status economy, Galliano explains that it may still not be enough for these lower middle-class workers to afford the types of developments that have been and are currently being built in the city. He adds that an unabated expectation of these concepts make it even more dangerous for the city in the next couple of years after 2016.Credit:Since the city started growing, enforcement has been stricter, but a few things have also become laxer such as the availability of credit. But Galliano clarifies that the scale of credit growth is something that has already been recognized and being addressed by the National Bank of Cambodia. He says that though credit is freely available, it is still “not to the extent of other markets.”Addressing the Concern:In conclusion, Galliano states that effective urban planning and intentional targeting of issues such as traffic through the construction of infrastructures will greatly alleviate and offset these concerns. Should these hurdles be overcome by both the market and the government, then Phnom Penh will continue to reap the benefits in the future. If not, there may be troubled times for the economy ahead. Invest wisely, and know the Cambodian market inside-out with our in depth investor guides.

According to a recent August 5th 2016 “Reminder Notification from the General Department of Taxation to Property Owners to Comply with Prakas No. 493 SHV. BrK concerning Property Tax Collection” all property owners in Cambodia need to be aware of their annual property tax obligation. The reminder states that payment for annual property tax is due no later than 30th September, 2016. Anthony Galliano, ceo of Cambodia Investment Management, notes that, “Although the obligation for all property owners to make an annual payment of property tax was reinforced since Prakas  NO. 493, dated 19th July, 2010, there is still a degree of non-compliance and outright avoidance. Being a non-corporate tax, this is one of the very few direct personal taxes, and the average Khmer remains reluctant, making enforcement within the general population much more complicated.” Nevertheless, the tax should be paid, and non-compliance is increasingly being punished. In the “Reminder Notification” the GDT notes it has observed that some property owners have failed to comply with this annual tax obligation and the GDT encourages those property owners to pay the property tax by the approaching deadline. Failure to do so in punishable by law. Learn more about Cambodia property tax today on Realestate.com.kh!

Whether you are looking for your dream home or buying a property for investment, the place to be is at the CAMBODIA PROPERTY & INVESTMENT EXPO ’16. It is where the latest commercial, industrial and residential properties from top developers are showcased. What’s more, you can get the best deals as there will be special discounts and free gifts offered only at the Expo. Make sure you drop by at the Diamond Island Exhibition & Convention Centre, Koh Pich, from 8-10 September 2016 for the Biggest Property Show of the Year! When you are at the Expo, you can also visit CAMBUILD’16 – Cambodia’s Biggest International Building, Construction and Interior Décor Show for the latest building and interior design products. See the full list of property developments on show at this year's expo and find out how you can join this years event!

According to Phat Sok, Head of the Land Department from Ministry of Land Management, Urban Planning and Construction, and Ms. Chan Socheata, Head of the Office of Business Management of Housing Development at the Department of Industry and Finance, “Cambodia currently does not have law or regulation in the management of plot land, however the government with relevant ministries are currently working on the drafting a law on “Business Management of Real Estate Development.” ARE YOU LOOKING TO BUY PLOT LAND? Read our ultimate guide to buying land in a plot land development now! Regarding the draft of this new law, Oknha Cheng Kheng, ceo of Huttons CPL said that, “making a law to have legal control over the company selling subdivided plot land is highly significant and timely.” He explained, “we have to think about the positive impact and negative side with the long term health of the market in mind. If this law is applied, it will be able to defend any conflict which is arising after the purchasing of that land. For instance, in the past there have been some companies that have promised to build the road and sewage system for customers within the plot land development, but ultimately they are not keeping their promise. If we have this law, we can make sure that they are legally obliged to fulfill their promises to the buyer." Oknha Kheng also directly questioned the government’s criticism of plot land developers given the current void of legislation. Oknha Kheng notes that “having been a service provider of plot land, I have observed notable progress in the sector. But I have also seen a lack of involvement from the authorities in regards to people’s education surrounding construction quality - some of which directly affects the municipal infrastructure, and the issues this causes when residential properties are under construction. At this early point of the construction progress there are no outright bans or instructions from the authorities guiding the developer. Then, suddenly after the construction is complete it is announced by the authority that the building is illegal. This state of affairs should also be taken into account by the relevant ministry.” Lina Thav, Executive Chairman of POD development in the project of Surin Phom Green Community, said that he supported a law governing the plot land subdivision companies: “Obviously our company wishes to fulfill its legal obligations and all safeguards required by law - such as responding to requests to display the master plan of the project to the government and customers, and the infrastructure plans to the Ministry of Land.” Suy Kokthean, Executive Director of the Vision to Social Advancement Organization, said that “since we do not have legal control over the plot land subdivision currently occurring, this creates problems for customers trying to purchase plot land now and in the future.” Suy notes that “plot land subdivisions have the potential to become areas of anarchy, where people build homes in any way they see fit. This will mean messy and poor-quality construction, building with no respect to borders easements. Furthermore, who will control zoning? What is stopping people from building factories and renting to workers, in the same area other buyers wanted to build a home?” He added “ This is an unpleasant thought for those who will buy plot land thinking it a good place to build a family home in the future.” He finally said, “if plot land management law is applied well, we could avoid these type of issues.” This discussion was held at the recent Cambodian Valuers and Estate Agents Association (CVEA) public forum entitled "Today’s Real  Estate Industry in Cambodia" at the Sofitel Hotel, Phnom Penh. This public forum event was designed to benefit key stakeholders in the Cambodian real estate sector such as developers, construction companies, real estate sellers and buyers, financial institutions and estate agents. Kim Heang, the president of the CVEA, also mentioned about the need for legal control over property sales and urged the government to establish the law relating to the subdivision plot land management law as soon as possible in order to facilitate the industry and to protect the interest of customers wishing to purchase plot land. Heang said that now is the ideal time to define what are the current issues in the real estate sector and find appropriate solutions to fix these problems. If these changes are not made quickly, the consumers will suffer in the longer-term. In particular, regulation is needed regarding plot land subdivision guidelines, condominium sales and development, boreys and correct licensing procedures for the Ministry of Economy and Finance and the Ministry of Land Management, Urban Planning and Construction.  BE A SMART PLOT LAND INVESTOR: Read our ultimate guide to buying land in a plot land development now!

August 29 2016, Phnom Penh - Sino Plaza VVIP Launch is underway at the showroom on Monivong Boulevard! Hundreds of guests joined to witness the VVIP Launch of sales for the long anticipated Sino Plaza condo launch.The Sino Plaza VVIP Launch is open from 8am-8pm tonight. Special offers are available for buyers who join today’s event! ALL ARE WELCOME!Buyers of any unit TODAY will receive a free 50 inch Toshiba TV, and a 2% discount on the total payment sum.Buyers who sign TODAY or in the NEXT 2 WEEKS will receive a VVIP 2% discount on the total payment sum.Sino Plaza’s 4 towers will rise to a height of 45-storeys each, located in the south of Phnom Penh city near Beoung Trabek Plaza, Sangkat Beoung Trabek. The project started construction in early 2015, and now all foundations are complete, with around $15 million already invested. The total project of Sino Plaza is worth more than $200 million and will be entirely finished, ready for occupancy in 2018.This project is a venture of Cambodian Natural Lucky Real Estate Development Co. Ltd, wholly owned by CYTS (China Youth Travel Services) from Hong Kong and China.INQUIRE TODAY TO FIND OUT MORE!

Knight Frank has just released the Prime Asia Development Land Index for the first half of 2016. The index chart’s prime residential property land prices (land used for apartment or condominium development), commercial space land and offices and prime development land across 13 major Asian hub cities. Phnom Penh prime land prices are show to have cooled notably since last year. The report notes that prime residential land index in regards to Phnom Penh land is now at 5.8% in the first half of the 2016, slowing compared to the first half of 2015 when it was as high as 16.2%. This marks a fall in prime residential land prices across the city. Prime Office land similarly was reported to have taken a fall. In H1 2016, the index for Phnom Penh land records 5.6% - compared to 14.8% the same time last year. Prices aren’t falling, but the rate of growth is slowing. The tables show price increases for the first half of the year (5.8% growth for residential) and price growth during the past year – year to June – so the increase from June 2015 to June 2016 (16.2% for residential). Thus, if we double the 5.8% to give an indication of price increases over 2016, we would get 11.6%. So, it’s still good growth, but it shows that the market is slowing down but not declining (11.6% growth compared with 16.2% growth). Ross Wheble, country manager for Knight Frank Cambodia, comments that, “Whilst Phnom Penh land still ranks within the top four cities for year on year growth in prime land prices, for both residential and commercial land, the figures for the first half of 2016 indicate that the rate of growth is slowing which, in part, can be attributed to the anticipated short term oversupply of condominiums which has impacted on demand for land in prime locations. However, whilst the rate of growth is moderating, land prices are still expected to achieve double digit growth over the course of 2016 and we continue to see investment inflows into Cambodia.” These trends in Phnom Penh appear to come with a region wide cooling. The report details that Asia-wide development land investment volumes are on par with the same period of 2015. The residential index slowed in pace to 1.9% across the region, compared to 2.8% the half year prior. However, office development land however rose 3 points, from 1.9% to 2.8%. Want to read more, check out the latest Market Highlights report from Knight Frank Cambodia.

In their abstract for a paper entitled “Infrastructure Development and Real Estate Values in Meru County, Kenya”, authors Mbaya Murungi and James Gatauwa describe infrastructure as an element that directly affects property value. The ease, convenience, and accessibility these infrastructural developments bring plays a key factor in how properties are sold, anywhere in the world.If this relationship is true, then this should predestine Cambodia’s future real estate growth and can suggest an increasingly positive outlook for buyers getting in the market now. As investors flock towards the nation and its growing economy, newer infrastructures also continue to quite-literally rise from the ground to help both sides of the economic spectrum, the wealthy international investor and the local populous. And while these new amenities will add costs for both purchasers and renters, it will also provide ease and comfort for people moving into different regions of the country.  Phnom Penh International Airport Expansion:Property Report, in their recent article, states their case in showing the correlation between airports and rising real estate prices. They mention a growing interest by wealthy investors with properties located nearby international bound airports, thereby increasing sales of prime developments in the area.As such, a $23 million expansion of the Phnom Penh International Airport by a Malaysian company in 2015 drew an enthusiastic reaction as it was expected to bring in more tourists and more wealthy investors. This was however short-lived as the announcement that the project was halted began to make its rounds, along with news of demonstrations that were being held by neighboring residents of the PPIA. In response to this, soon came news from the Senior Government Minister regarding plans for a totally new airport near the city outskirts. If the plans push through, the government’s target date of completion would be 2025. With this new airport, the government also seems to be considering mass transportation systems upgrades to fast track those travelling to and from the airport into the city.In line with this, new types of multiple entry tourist and business visas are set to come into effect on September 1 2016, easing entry requirements greatly for regional investors and retirees.Completion of Railway to Poipet:Hosting a Thai-Cambodian border in its area, Poipet has long been a transition town where cargo and travelers pass. But delays in this small gateway town have traditionally plagued logistics and trade inefficiencies.One solution that has been put forward and is now nearly within reach is a new railway system that will connect Phnom Penh and Poipet. This new system is expected to allow much more direct access to Bangkok from Phnom Penh and vice versa. With only 6 more kilometers of tracks needed, completion is expected at the end of 2016.In addition to this, Sihanoukville is also expected to experience a boost of trade and tourism through the reopening of the passenger railways that connect it to Phnom Penh.Sihanoukville Port Development: Other than the over-arching improvements currently being implemented in the humble beach town of Sihanoukville, a great deal of work has also been put into the expansion of its port area.Having the only deep sea port in the country, particular emphasis has been made to ensure that it is able to accommodate sufficient trade and transactions. The expansion and functionality upgrades throughout the years has brought many business owners huge benefits and is the overriding factor that is drawing new foreign direct investment into the province. The Sihanoukville Port Multi-purpose Terminal Development project alone, which Japan has helped fund, will cost around $75 million and is estimated to be completed by the end of 2017. The end goal for Sihanoukville Port is that full size cargo vessels will be able to port at Sihanoukville, making long haul import and export around the world less costly and faster. Currently, Sihanoukville can only harbor feeder vessels that would then need to travel to ports such as Hong Kong, Singapore and other regional post in order to transfer containers onto the larger long haul vessels. In the future, full size haulers will be able to travel direct to worldwide destinations.Roads and Transport:With the growing population of Cambodia and particularly Phnom Penh, accessibility and traffic definitely play a big role in the values of residential and commercial properties.So, news of Japan donating 140 new buses, valued at over $10 million, was received well by the Phnom Penh working class. These units are expected to service the citizens much more efficiently by 2020 as bus lines are set to continue to increase yearly. Currently there are 10 lines across Phnom Penh. The regional road systems of Cambodia are also expected to experience changes in the next few years. China – through the firm Henan Provincial Communications Planning, Survey, and Design Institute – will develop an expressway along National Road 4 (Phnom Penh to Sihanoukville) after the go signal was given for the China Road and Bridge Corporation to push through with a proposed highway project recently.This comes at a time when Sihanoukville is under a period of growth and developmental changes; and, as anyone that has travelled to the beach town by road will know, a wider, direct highway will benefit this growth hugely.In addition to this, National Road 5 is also expected to strengthen the efficiency of trade with Thailand through a recent grant from Japan.Learn more about Cambodia in our extensive location profiles!

Cambodia is fast becoming a world-leading destination for tourists who want to experience a new frontier on the global tourism stage. And why not? Cambodia has a rich and diverse cultural history; it is full of natural wonders and untouched beaches; and as the Kingdom’s economy grows, Cambodia is offering travelers more and more luxury options to make their stay even more special. In fact, according to TripAdvisor.com’s “Travelers Choice Awards 2015”Cambodia was the 2nd most popular tourism destination in the world.As of 2016, Cambodia has about 500 hotels of note, but only around 30 of these hotels have 100 or more rooms - and just six or seven of these venues offer international standards of hospitality services and execution. In this domain, the SOKHA Group is leading the way across the nation... SOKHA Group has a wealth of experience in tourism and hospitality in Cambodia, with their network of 5 star offerings across the Kingdom: Sokha Beach Resort – Sihanouk Ville; Sokha Angkor Resort - Siem Reap; Thansor Bokor Highland Resort – Kampot; Sokha Phnom Penh Hotel & Residence - Chroy Changvar Peninsular, Phnom Penh and Sokha Siem Reap Resort & Convention that going to open in mid of September 2016. Sokha Phnom Penh Hotel & Residence is the premier luxury residential experience in Cambodia’s Capital city. Whether you want to stay 2 days or 2 years, by selecting Sokha, you are guaranteed the best that Cambodia has to offer every day. Sokha Phnom Penh Hotel & Residence, which completed construction in 2015, consists of 18 floors with 549 units of hotel rooms and 195 units of residential suites (service apartments). Rising high above the shores of the Mekong and Bassac rivers, Sokha Phnom Penh Hotel & Residence is host to the most prestigious luxury living standard, events, business conferences or expos, and a popular choice for fine dining among the local elite.Sokha Phnom Penh Hotel & Residence offers unmatched views of the Mekong River and famous Royal Palace, and a quality of environment impossible to find in the popular inner-city districts. For those who are looking for working stays at the Sokha Phnom Penh Hotel & Residence, you are just minutes from the central business district of the city. Other perks for business guests include a meeting room for international conferences, high speed internet access and taxi services to and from the central city. All 195 residential units have classy polished timber floors and all amenities for your convenience included. The Bassac Suites (52 sqm/560 sqf) are exclusively designed as studio suites, fit for a quiet and relaxing stay. The Tonle Sap Suite (90 sqm/969 sqf) is a 1 bedroom suite with additional space, combining comfort, privacy and a place to call home. The Mekong Suite (104 sqm/1,119 sqf) has 2 bedrooms with highly customized and graceful furniture included, a premium choice of luxury living for both family and long stay business travelers. The suites feature distinctive, breathtaking views of the Great Mekong, Tonle Sap and panoramic view of Phnom Penh. Like swimming? At Sokha Phnom Penh Hotel & Residence you can get your fitness fix, with a huge 1,650 sqm/17,760 sqf outdoor swimming pool. Residents are able to access to gym, the luxurious healthy spa, steam, sauna, and jacuzzi. A comfort package is also available for residents with complimentary electricity and huge underground parking lots. Each room is connected with wireless internet access, fully furnished with full-sized fridge, washing/drying machine, modern kitchen full-equipped appliances, and multi-channel 47 inch LCD TV at the separate living room and dining area.Residents can also get complimentary usage of the hotel Business Centre at the lobby and the BBQ Pavilion Space on Surkea Rooftop (Open Space for Dining /Party /Landscape Deck). And enjoy the international restaurants that serves food from around the world (Chinese, Japanese, Asian, Western, Italian…). Like to party after work? The Wave Club on 19th Floor and Stardust Karaoke below the hotel is ready for you, any time from noon. With 5 star hospitality service, round-the-clock security surveillance, 24 hours room service, housekeeping, linen (bedding and toweling) and daily shuttle bus service from the hotel to Aeon Shopping Mall, guests are able to relax and enjoy with their stay while the Sokha staff take care of almost everything. Of course, the concierge services are ready to help with any need you might have, day or night.Find out more about Sokha Phnom Penh Hotel & Residence and make your stay in Phnom Penh unforgettable!

Cambodia has seen a significant rise in its economic value throughout the past decade, but there is a potential threat that it has to watch out for. Negative interest rates are looming to enter Asian countries and are slowly creeping in from the European and Japanese economic policies and implementations from central banks.  This, Sing Capital’s Chief Executive Officer Alfred Chia, explains is a concept taken from the Swiss government when it was fending off a crisis back in 1970. This was a statement he made during the Inaugural Cambodia Property Show held in Singapore this year.What is a Negative Interest Rate?Negative would seem like an odd usage when used in combination with the term “interest rate.” But this has been a concept embraced by countries whose economies are coming into a desperate state. Chia explains the concept as something that goes against what we’ve been taught. Whereas banks are supposed to pay us an interest when we decide to put a deposit, the concept of negative interest rates works the other way around. Banks actually charge you the interest for putting money in their care.This should come as no surprise, but it is definitely an “unconventional” concept, according to Chia. Probably something that we usually take for granted is that banks are still business entities and still have to earn.Why are more countries adopting Negative Interest Rates?He continues to state that there are five main factors affecting why more and more countries are slowly adopting this unusual concept. These factors are Global GDP, China-economy affects, oil & commodities, currency, and interest rates; and these are all interconnected.Since there is a downturn in the global economy right now, we find that countries like China are slowly experiencing the effects through the apparitions of its ghost towns which were once vibrant communities for industrial workers and their families. Having said this, we also see the appreciation and depreciation of major currencies like the US dollar which serves as Cambodia’s main currency.How might this affect Cambodia?What will most likely affect the growth of Cambodia is either the strengthening or weakening of the US dollar, and the Chinese business behavior during this time since the Chinese are also one of the major investors in Cambodia.Though perceived to be signs of a struggle, the aim of negative interest rates is to force banks, businesses and individuals to be creative with how they can make their money grow. Banks seem to have found a means through lending out.And, according to Chia, banks have seemed to found a sort of reprieve through the property market. He uses Japan as an example where its people are able to loan up to 100 percent of the property value at just a 1 percent per annum interest rate. With proper valuation, lending out lessens the risk for them because even if the loan is not paid back, they still have the property itself to fall back on.Should this concept apply for Cambodia, banks may actually be able to profit more due to the booming real estate industry.Learn more about the Cambodia investment climate!

Phnom Penh, 23 August 2016 - SHUKAKU INC. signs MOU with the DON BOSCO Foundation in order to equip young Cambodians with the skills to build the Cambodian of tomorrow.Under this partnership, the Phnom Penh- based Real Estate Company and the master developer of the Phnom Penh City Center (PPCC) will grant scholarships to 20 students from the Don Bosco Technical School over two years tuition, and sponsor a brand new computer lab at the Don Bosco campus.The Memorandum of Understanding (MOU) with the Don Bosco Foundation will pave the way for a two-year partnership worth more than $69,000.The Don Bosco school is an educational non-profit organization that provides free vocational training to young Cambodians from disadvantaged backgrounds.Roel Soto, Country Representative of the Don Bosco Foundation, said: “We are grateful to Shukaku Inc. for aiding us in our efforts to fight social exclusion through practical education and skill building.”He added, “These scholarships will equip young Cambodians with real-life-proof technical skills and knowledge, crucial learning and development, all of which will enable us to build the Cambodia of tomorrow, today.”The company will also sponsor a brand new computer lab comprising of more than thirty computers at the Don Bosco campus. This is another effort that is part of Shukaku’s commitment to enhance IT literacy across Cambodia and provide a conducive learning environment for the students of Don Bosco. Michelle Lau, Executive Director of Shukaku Inc., said, “This signing is only the beginning of what we hope will be a fruitful and long-term partnership with the Don Bosco Foundation. I continue to be truly inspired by Don Bosco’ s core values of inclusiveness, generosity and excellence - and I trust our relationship will strengthen over the years as we find more opportunities to help Cambodians unleash the full potential of Cambodia.” Ms. Lau also underlined that this partnership is only “the first of many to come.” Under Shukaku’s new “Sustainable Growth Initiative,” the company’s comprehensive community engagement and empowerment program will aim at making a tangible contribution to the communities in which it operates. The program will help build a collective vision to a future of share prosperity through various and long-term income –generation initiatives. Learn more about Shukaku's Phnom Penh City Center project today!

Market SummarySen Sok district (Khan in Khmer) has experienced a rapid growth, especially in term of residential, commercial, and infrastructure developments. Thus, land prices in the whole district increased markedly within the last couple of years. By the end of 2013, average market price of land in Sen Sok was US$380 per sqm. In the first half of 2016, average market price in the district rose to US$690 per sqm, with average growth of 27 percent y-o-y from 2013 to 2015. Nevertheless, land market prices across Sen Sok district have stagnated since the beginning of 2016, making Q1-to-Q2 2016 list price ratio to drop to 99 percent, though minimally, as property sellers were testing the market at which a reasonable market price should be met.Tuol Kouk district, on the other hand, experienced a slight rise in land price within the same period, from average market price of US$2,150 per sqm in 2013 to US$ 2,530 per sqm in early 2016, growing at 6 percent y-o-y within the tracked period. However, across Tuol Kouk district, Q1-to-Q2 2016 list price ratio dropped to 99 percent due to real estate market stagnancy since the start of this year.In sum, these two districts both of which lie northwest of the central Phnom Penh have enjoyed a rapid growth in term of residential and commercial developments. The suburban Sen Sok district, for example, has witnessed a noticeable pace of developments, especially mixed-use landed housing and infrastructure, which gives rise to a change in the skyline and rapid surge in land prices over the course of the previous three years. This growth will continue its pace as developers foresee market optimism over the next coming years.Land Market PricingTuol Kouk DistrictOver the last preceding decade, Northern fringes of Tuol Kouk district was the first main destination for residential relocation because of its available large portions of vacant land and a neighborhood of the central parts of the capital.  Land prices across the district, therefore, started to surge ever since. In 2005, average market price across the district was about US$1,100 per sqm, with a threshold of US$450 per sqm along secondary streets to US$1,900 per sqm along primary streetsEarly this year, average land market price across Toul Kouk rose to US$2,530 per sqm, while some of the prime commercial streets could fetch a market price as high as US$5,750 per sqm. Over a decade, average growth rate of land prices in the district was about 10 percent y-o-y, and during the last three years the growth was about 6 percent.Remarkable land price surge was seen in Boeng Kak Ti Muoy and Boeng Kak Ti Pir, both of which are Tuol Kouk’s northern communes adjacent to emerging Phnom Penh Thmey of Sen Sok and densely-populated Tuol Sangkae of Ruessei Kaev district. The former grew at 17 percent y-o-y within the period from 2013 to 2015, and the latter, 13 percent. The two communes’ higher growth in land market prices, if compared to that of other communes in Tuol Kouk, was pushed by two key factors. First, because of their relatively small market price base (from a minimum of US$650 per sqm in the last three years), a small price jump could see an enormous growth in y-o-y rate. Second, their attractive, emerging locations have been ideal for residential towns, high-rise developments, and commercial establishments, all of which pushed market demand to rise. As a result, buyers were willing to accept the offers and through this, the market prices started to increase relatively more quickly over the last three years.On the other hand, many parts of the Tuol Kouk seemed almost to reach their price caps, as many available development and establishment opportunities have now appeared elsewhere throughout many of the peripheral parts of the district and its neighborhoods, offering much lower prices and promising opportunities. Such parts almost reaching land price caps are Phsar Depou, as high as US$5,750 per sqm and Tuek L’ak, as high as US$5,200 per sqm.Sen Sok DistrictOver the previous three years, property market prices across Sen Sok witnessed a double digit growth, with 27% y-o-y from 2013 to 2015. Back to 2013, average land price across the district was US$380 per sqm, and it grew to US$690 per sqm in the first half 2016.Khmuonh, one of the four fastest growing communes (sangkat in Khmer) of Sen Sok district, enjoyed a relative quick pace of residential town (such as Grand Phnom Penh International) and infrastructure developments, with main streets such as Hanoi (St. 1019) almost finished this year and Tumnup Kop Srov Road (the capital’s ring road) due to completion sometime soon. As a result, average growth for land price in Khnuonh commune was 35 percent y-o-y, from US$230 per sqm in 2013 to US$480 per sqm in the first half of 2016, with market prices along main streets ranging from US$300 per sqm to US$710 per sqm.Krang Thnong, adjacent to Phnom Penh Thmey commune and a quick access to the prominent Russian Boulevard, also witnessed a double-digit growth in land prices, with an average of 29 percent y-o-y, from an average of US$110 per sqm in 2013 to US$210 per sqm in the first half of 2016 across the commune. The enormous growth in land prices was driven mainly by residential potentials thanks to many available parcels of vacant land, including residential plot land movements and ongoing town development such as Borey Maha Sen Sok by Japanese developer Creed Group.Phnom Penh Thmey, adjacent to Boeng Kak Ti Muoy and Boeng Kak Ti Pir, the two prominent communes among 10 of Tuol Kouk district, also experienced a double-digit growth, having stood high thanks to its development potentials and strategic market position where several remarkable development projects such as borey New World (La Sen Sok), second project of AEON Mall, and borey Chip Mong Land, to name a few, have already been pinned up on the map. Thus, land prices grew at average 19 percent y-o-y within 2013-2015 period, from an average of US$530 per sqm in 2013 to US$830 per sqm in the first half of 2016. Remarkable potentials in Phnom Penh Thmey commune have been also seen after the completion of main infrastructure, for example, Oknha Mong Reththy and Hanoi Street.Market Performance Tuol Kouk DistrictA central zone of the capital, Tuol Kouk district has experienced a tremendous change in its skyline and infrastructure, which led to an increase of property demand as well as prices across the district over the last three years. Yet, average SP-to-LP ratio across property market in Tuol Kouk was 95 percent in 2015, while average original-to-last list price ratio dropped slightly to 99 percent Q1-on-Q2 2016.Low pricing ratios were noticeable in Phsar Depou Ti Muoy commune, where SP-to-LP ratio went down to 90 percent, lower than those in any other communes across Tuol Kouk district. The low pricing ratios in the two communes could be dragged down by the disruption of Techno Flyover construction process that affected on profitability of prime business spots along Russian Boulevard and its surroundings, thus resulting in less-commercial options for buyers to seriously consider the properties over there.Sen Sok DistrictDespite enjoying a significant growth in most parts of the districts over the course of the previous three years, Sen Sok’s property market heat has been slightly cooled down since early 2016 due to overall slowdown in property transactions. Given that average sale-to-list price ratio (SP-to-LP) was 93 percent in 2015, average achieved sale rate across the district was 7 percent below the original list prices, although H1-on-H2 2015 list price ratio (LP) rose to 101 percent. However, during the first half of 2016, average original-to-last list price ratio was 99 percent Q1-on-Q2.The fact that pricing ratios, typically sale price, went down to 93 percent across property market in Sen Sok district means there were many available properties, especially numerous unoccupied homes and vacant parcels of land, and therefore buyers have more power to negotiate for a lower price. Nevertheless, that average original-to-last list price ratio went down to 99 percent was a sign that many of sellers were adapting their asking prices to cope with less aggressive market demand during the first half of 2016.Outlooks and TrendsWith an organic trend of relocation from the central city to suburban and peripheral areas of the capital in a bid to cope with rapid land price growth, accelerating traffic pressure, and increasingly overcrowded city dwellers, a number of people have started to move out to several suburban parts where they form new towns and communities, remarkably since the five years, and Sen Sok district is no exception.Major development trends have been noticeable across Sen Sok, especially its Phnom Penh Thmey commune, which is situated northwest of its neighboring Boeng Kak Ti Muoy and Boeng Kak Ti Pir of Tuol Kouk district. Today, throughout many parts of Phnom Penh Thmey are situated many of finished housing projects such as (1) two of Borey Peng Hout projects the Star Emerald and the Star Quarteria, all of which are along Oknha Mong Reththy Street (1928 St.), (2) two of Borey New World projects, one of which is located a hundred meters off Mong Reththy Street and another is on Oknha Try Heng Street (2011 St.).Another ongoing Borey New World (La Sen Sok) on Oknha Mong Reththy Street has been almost finished, whereas only its community shopping mall remains under construction. Further, Borey Park Land (Sen Sok) along the same street is due to completion sometime next year.More importantly, the second project of AEON Mall by Japanese developers has been pinned on the map in the most promising zone, immediately adjacent to Borey New World (La Sen Sok) and less than 800-meter-radius ring of Camko City (southeast), Borey Angkor Phnom Penh (north), Borey Park Land (southwest), and Borey Peng Huot (south). These factors have brought about more demand for the area, including housing unitsand parcels of land, thus pushing prices to hike rapidly.Phnom Penh Thmey is a popular location for buying a first home,being voted by 20 percent of the surveyed prospective buyers (conducted by VTrust Appraisal), ahead of other areas such asChrouy Changva (16 percent), Stueng Meanchey (11 percent),Toul Kouk (11 percent), unspecified areas (17 percent), and otherareas combined (25 percent).This research report was a production of V Trust Appraisal.