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Long-term visa options in Cambodia
Long-term visa options in Cambodia
June 7, 2022, 7:11 a.m.
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Are you planning to retire in Cambodia?In the 2019 InternationalLiving.com's Annual Global Retirement Index, Cambodia was named as the 12th best place in the world to retire.  This was the fourth year in a row that the Kingdom held that title.In the 2021 edition, Cambodia again ranked as one of the most affordable destinations to retire and one of the best countries to retire overall.You can find out more in our ultimate guide to retiring in Cambodia which details the costs, benefits, property, and insurance expectations. See more below about the visa required by retirees in Cambodia.Is a visa required to stay in Cambodia?Yes, a visa is required to stay in the Kingdom of Cambodia for all foreigners. However, Cambodia has some of the most flexible visa regulations possible for foreign tourists, expat professionals, and retirees to visit and live in the “Kingdom of Wonder,” in the region.Whether you’re a tourist or a resident, a visa is required to visit, or stay in Cambodia long term. In 2019 the visa rules were constricted regarding long-stay visas, giving a preference for those who are locally employed or of retirement age.Types of Cambodian visasTourist visaThe tourist visa (T class) is for travellers who know they will be staying for 30 days or less. The 30-day tourist visa is available to travellers in advance or on arrival (for most nationalities) for a cost of $30 if you obtain it directly at the airport. The tourist visa is single entry only and can be renewed once only for an additional 30 days for a fee of between $30 and $50.At the expiry of the additional 30-day extension on your tourist visa, you must leave Cambodia and come back to obtain a new visa. If you are planning on staying in Cambodia, a tourist visa is not the best one for you, so start with a renewable ordinary visa instead.Cambodian “ordinary” visas (E class) If you wish to stay in Cambodia for an extended period of time, you will need to apply for a 30-day E-class visa (not an online e-visa) when you arrive. The visa is valid for 30 days and costs $35 (subject to your nationality). An ordinary visa can be extended indefinitely.Prior to your 30-day expiry, you will need to go and extend your visa. Due to language barriers and uncertainty, if it is your first time extending your visa, a lot of expats will use the services of an agent. You can choose an EB, EG, ER, or ES visa extension, known as an EOS, or extension of stay.The four E-class visas in Cambodia(Please note: that during the global COVID-19 pandemic - the visa situation in Cambodia has been temporarily different and no visas on arrival have been offered. Visa regulations and requirements should be checked with your relevant embassy from overseas. We recommend you follow the official government announcements on issuing visas).EB visa extension The EB business EOS (Extension of Stay) covers most expats in Cambodia, including those who are working, their partners and children, freelancers, and volunteers. The current rules (as of January 2019) require applications to provide a stamped letter verifying their employment with a Cambodian company). This visa extension is renewable and can last for 1, 3, 6, or 12 months. Please note only the 6- and 12-month visa extensions allow multiple entries.Spouses and children of EB visa holders will need to submit the visa holder’s employment letter. The letter needs to state that the company supports the application for the spouse’s EB EOS as a non-working dependent, and includes the dependents’ passport information. You will also be required to bring proof of your relationship to the visa holder to renew your own visa extensions.If you are self-employed and have a registered business in Cambodia you can write a letter confirming your own employment. This letter must be stamped with the registered Cambodia business stamp. Further information on setting up a business in Cambodia can be found here.An EB visa extension does not automatically give you the right to work in Cambodia. In order to be legally employed, you will need a Cambodian work permit and employment card issued by the Ministry of Labour and Vocational Training.EG visa extension The EG visa extension is designed for those seeking employment in Cambodia and can last 1, 3, or 6 months. If you have had a previous EB visa extension you probably will not be granted an EG visa, as they are not intended for expats who have already been in the country for a long term. The EG visa is only for first-time visitors to Cambodia.ER visa extension The retirement visa extension is for expats of retirement age. You simply apply for ER (retirement) extensions. Here are the requirements:You must be 55 or older.You cannot be employed.You must be able to prove you are retired (with a pension or social security documentation) and have enough funds (bank or retirement fund statements). For more information, please read our ultimate guide on retirement in Cambodia. These extensions can be valid for various lengths of up to one year. Prices are similar to working visa extensions which cost around $290 for a full year with multiple entries. There are various agencies throughout the region that can assist and help you with processing.Although the ER visa is popular and the price point is much lower than in neighbouring countries, you are not permitted to seek employment in Cambodia. For those wishing to work or operate a local business a Business Visa is required. It is worth noting some US companies are present in Cambodia and you might find them with job postings on popular US employment portals. More jobs in US here.ES visa extension The ES visa extension is a student visa. Applicants for the ES visa extension are required to provide a letter from a registered Cambodian school, as well as documentation to demonstrate they have sufficient funds to support themselves. The ES student visa extension can be issued for 1, 3, 6, or 12 months.Other Visa Types for CambodiaThe visas mentioned above are the main types most foreigners will be looking to secure for a long-term stay in the Kingdom. However, there are some other visa types for children of foreigners and those working in the NGO and international visitors of the government.K-class VisaThe K-class visa is intended for those of Cambodian descent who hold a foreign passport, which is valid for free for a lifetime visa.B-class VisaThe B-class visa is for employees of organizations that are in Cambodia at the government’s invitation EG: United Nations or World Health Organization.C-class VisaThis is a free visa for employees of international NGOs that have a memorandum of understanding (MoU) with the Ministry of Foreign Affairs.Cambodian visas for childrenAll non-Cambodian children are required to have an E-class visa to enter the Kingdom. If the child has at least one Cambodian parent, they can apply for a free K-class visa.Work Permit in CambodiaThe Cambodian Department of Immigration requires all foreign nationals to obtain an official work permit/employment card to be eligible to work in the country.Foreign nationals wishing to work in Cambodia must also meet the following conditions:Have a job offer from an employer compliant with relevant regulations regarding the employment of foreign nationals.Have legally entered the Kingdom of Cambodia.Possess a valid passport.Possess a valid residency permit.Be fit for the relevant job.Have no contagious diseases.You can read more about being an expat in Cambodia in our guide.Register on the Foreigners Present in Cambodia System (FPCS)The FPCS app records foreign information when they arrive in Cambodia at any entry point. It also records their data when they leave Cambodia.The main purpose of FPCS is to protect foreigner safety and security in case of an emergency when they are traveling throughout Cambodia and was introduced and enforced in early 2020.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by
Matthew Rendall at Expo 2018
Legal aspects of co-owned buildings
June 6, 2022, 5:07 p.m.
Realestate.com.khTV
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Like any other business enterprise, real estate development is governed by a legal framework. These set of laws and regulations, though complicated, ensure operations and activities related to the sector are done legally without ill effects on people and the environment.  Co-owned buildings are covered by most existing real estate laws in Cambodia but there are a few regulations exclusive to this type of property. Developers can be heavily penalised if they don’t follow these regulations in the Kingdom.We will guide you on the legal frameworks of co-owned buildings. Additionally, you will learn what is required if you are a developer in Cambodia.Keep in mind that you can browse hundreds of co-owned buildings on our site and you should always consult with a qualified legal team if you have doubts.What is a co-owned building?When people say “condominium” they are usually referring to a co-owned residential building. Under a co-ownership arrangement in Cambodia, several owners live in the same building. A co-owned building consists of units that are exclusively owned, with common areas whose use and benefits are shared among the co-owners.There are several types of co-owned buildings:Detached buildingsSemi-detached buildingsAttached housesIn the past, foreigners weren’t allowed to buy condos in Cambodia. In 2010, however, the law changed. Anything from the first floor and up can be owned by a foreigner. Also, foreigner ownership cannot exceed 70% in a single building.Find out more about buying a condo in Cambodia as a foreigner.Legal aspects for developers:Project licenceBefore work begins, a developer is required to obtain a project licence from the Ministry of Finance and Economy (MEF).This requirement was set forth in Prakas 965 and there are two types of licences:Type 1 licence is for developers who finance their projects by themselves. Type 2 license is issued to developers who raise money from their buyers.Holders of a Type 1 licence can only sell units within the development once the project is complete. Developers having a Type 2 licence can pre-sell, but only after obtaining a construction permit and a project permit from the MEF.Developers must make a deposit of 2% of the total value of the project into an account with the National Bank of Cambodia (NBC). This measure is meant to protect investors and their money in the event the project is not completed.The government has the right to revoke the licence if the developer fails to finish the project on time or if the developer fails to follow the legal obligations required under the law.Construction permitsSave for a few exemptions, a construction permit is required for any construction work or development in Cambodia.Applicants must complete forms and submit them to the Ministry of Land Management, Urban Planning and Construction (MLMUPC). Supporting documents must also be filed at the commune, district and municipal levels. All submissions must be made in Khmer.The application must bear the signature of the landowner and a licensed project designer or architect.The authority to issue construction permits mostly falls within the jurisdiction of municipal or provincial officials. For big projects like airports and seaports, it is the National Committee of Land Management, Urban Planning and Construction that issues the necessary permits.Under Cambodian law, a construction permit is only issued if the applicant follows or is compliant with the master plan, land use plan, and other governing rules and regulations.Other relevant permits in CambodiaIn addition to the permits mentioned above, there are others that will be required throughout the process of development:A site opening permit is required to open a building site. This is issued by the MLMUPC. The ground cannot be broken before obtaining this permit.A site closing permit is required once the construction is finished. This is a key component in the process. A certificate of compliance is also required before the project is considered finished. Keeping to codeIt’s important to follow the letter of the law when it comes to real estate in Cambodia. If problems occur, court cases can be long and painful affairs. It’s important to do all your research before beginning the process. Realestate.com.kh urges everyone to enlist the help of qualified legal professionals.Note: This is a general guide and does not constitute definitive legal advice. Always do your own research and invest at your own risk.Looking for property investments in Cambodia? Let us help!
Huge sales recorded at the inaugural Cambodia Real Estate Show
Huge sales recorded at the inaugural Cambodia Real Estate Show
June 6, 2022, 5:04 p.m.
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The Cambodia Real Estate Show, powered by realestate.com.kh, saw over 3000 local and international investors flock through the Grand Ballroom doors of NagaWorld Hotel last weekend, Friday & Saturday.The country's leading developers benefited from thousands of sales leads generated over the two days; and a staggering 30 deals were converted onsite at the show - equating to over 3 million US$ in total property value.Developers also booked a high number of site visits, showroom tours, and gained hundreds of serious leads to follow up in the coming weeks after the show. Three lucky buyers also won international flights packages, thanks to the airlines sponsor Cambodia Angkor Air.40% of those who attended the event were Chinese, or Chinese speaking; 20% were mixed internationals; and 40% were Khmer nationals. As Cambodia’s leading property classifieds website, the turnout of the show represents the targeted audience of the Realestate.com.kh website and related media channels.“The Creed Group, presenting 3 projects at the show - Bodaiju Residences, Borey Maha SenSok and Arata Garden Residences - achieved a great result: 21 unit bookings and reservations for current selling projects and the upcoming project, Arata Garden Residences,” confirmed Ms. Kelly, Deputy Sales & Marketing Director at Creed Group.Ms Intan Kosem, developer of Habitat Condos, said that, "We were very delighted to present Habitat Condos at the show. In fact, we sold one unit to an overseas buyer which we met at the show - and we also generated various other sales leads and property visits from the event. We look forward to the next show!”“We were very satisfied to be a part of the inaugural Realestate.com.kh Cambodia Real Estate show at NagaWorld. The event enabled our team to generate a significant number of direct sales and many good quality leads for prospective buyers. We are looking forward to the next event organized by the Realestate.com.kh team,” said Mr Laurence Hamilton, Vice President of NC Max World Real Estate Development/Brokerage who presented new projects such as The View and East One Apartments at the show.Mr. Piseth Seng, CEO of LK Development Group - developer of The Elements project, stated that, “The Cambodia Real Estate Show at NagaWorld was beyond our expectations! Realestate.com.kh delivered what was promised to the exhibitors. We met so many potential buyers and the high-value investors that we were looking for. We are sure that this Real Estate show is here to stay in the market and we are proud to continue to work with Realestate.com.kh into the future.”In addition, the show provided a very insightful series of seminars from some of the most respected figures of the local and international industry. All of these presentations and video seminars are available for viewing on www.realestate.com.kh/news in the coming days.Porsche and Mercedes Benz were also at the show - allowing visitors to test drive some of the hottest cars on Phnom Penh’s streets from the valet parking area of NagaWorld.The Show would not have been possible without its dynamic sponsors: Last Mile Works VR, Seara Sports Systems, Ezecom & Cellcard. A big thanks goes also to our trusted Official Media Partners: Business Cambodia, Bizkhmer, Khmernavi/Enjoy Cambodia, Sin Chew Daily, B2B Cambodia, Amcham, Britcham, Cambodia Constructors Association (CCA), Cambodian Valuers and Estate Agents Association (CVEA), PropertyGuru, Property Report, Asian Property Review, PropertyGuru International, Juwai.com, the Khmer Times and La Reine. “Our real estate show simply closed the gap between the investor and the opportunity,” comments the ceo of Realestate.com.kh, Mr Thomas O’Sullivan. “When investors from throughout the region arrived in Phnom Penh for our real estate show, they were able to feel, smell and touch Cambodia; they saw the drastic changes happening here in terms of construction and real estate development. They also came to understand the infrastructural improvements that are transforming the country into an economic hub. This exposure to Cambodia gave many the confidence to invest in property at the show,” concluded O’Sullivan.After the success of the first ever Cambodia Real Estate Show, Realestate.com.kh is already planning for an even bigger and more comprehensive Real Estate Show within 2017.Find the best real estate news on Realestate.com.kh
Cambodia Property Awards 2017 Winners
Cambodia Property Awards 2017 Winners
June 6, 2022, 5:04 p.m.
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Prestigious awards programme celebrated the innovations of Cambodia’s fast-growing property sector. Borey Peng Huoth Group scores a back-to-back Best Developer winGuest of Honour H.E Senior Minister Chea Sophara gives the opening keynote addressCambodia News Channel airs the exclusive ceremony attended by more than 300 guests and VIPs PHNOM PENH, Cambodia – 24 March 2017Cambodia’s most outstanding real estate developers were honoured at the second annual PropertyGuru Cambodia Property Awards during an evening of celebrations, dining and networking with more than 300 guests at the Sofitel Phnom Penh Phokeethra.Last year’s champion Borey Peng Huoth Group, developer of the acclaimed residential project Grand Star Platinum, clinched a further three awards including the biggest accolade of the year – Best Developer (Cambodia).“Borey Peng Huoth Group is a company that has redefined Cambodia’s residential landscape,” said the independent panel of judges. “From careful site selection to sustainable building initiatives, Borey Peng Huoth is an innovative, strategic, progressive, and creative developer. With acclaimed housing projects like Grand Star Platinum, the company has elevated the local property sector by implementing best practices in international markets with local sensibilities.Earning gongs for Best Housing Development (Phnom Penh) and Best Landscape Architectural Design, the developer was hailed for its use of technology and placing a premium on its relationship with consumers by “being the Kingdom’s first developer that has created a dedicated mobile application for its client roster.”Another big winner of the evening was five-time nominee Phnom Penh City Center, which collected a trophy for each one of its nominated projects: The EDGE, a Khmer-inspired retail development with customisable spaces for tenants; Residence90, a high-end residential development that was noted for its architectural excellence; and The Vanguard, the corporate headquarters of its parent company, with an expected completion date later this year. All three winning projects are located within the integrated Phnom Penh City Center development that aims to become a modern, sustainable, commercial and leisure district in the capital by 2025.More than 30 projects located across Phnom Penh, Siem Reap and Sihanoukville joined this year’s competition. A total of 17 awards were presented, including a Special Recognition in Green Development for MTP Invest, developer of Siem Reap-based residential project Phum Barang, a double winner this year.“Taking advantage of Siem Reap’s sub-tropical climate, Phum Barang boasts of comfortable living amenities and a natural ventilation system that can withstand strong winds, bright sunlight and the monsoon season,” chairman of the judging panel Sorn Seap, founder and director of Key Real Estate Co Ltd, commented.He added that more developers in the country should embrace sustainable and green building practices. “We all must look into Cambodia’s environmental guidelines, take into account greening initiatives, and push for new technologies that can help reduce the environmental destruction. Developers and consumers should think about air circulation and water treatment plants for converting dirty water from their properties before dispatching into the public sewer.” The evening’s guest of honour, His Excellency Senior Minister Chea Sophara, Minister of Land Management, Urban Planning and Construction, applauded the successes of the Cambodian property sector in his keynote address.Top country winners in Cambodia will now advance to the two-day PropertyGuru Asia Property Awards grand finale this November at the Sands Expo and Convention Center in Singapore to compete for more regional accolades and to be crowned "the best in Asia”.Hari V. Krishnan, CEO of PropertyGuru Group, said: “We congratulate the developers who participated in the Cambodia Property Awards. Their outstanding projects inspire and shape the future of the Cambodian real estate sector, which has been given many opportunities over the last couple of years to grow. Because of the Awards, consumers are empowered to make confident property decisions, whether they’re first-time buyers, expat renters or serial investors. Property knowledge is essential in our culture at PropertyGuru. We wish the Winners the best as they advance to compete at our grand final in Singapore.”Terry Blackburn, founder and managing director of PropertyGuru Asia Property Awards, commented: “Cambodia’s real estate sector is undoubtedly one of the most exciting emerging markets in Southeast Asia right now. Phnom Penh, Siem Reap and more recently Sihanoukville have all seen a huge increase in interest from foreign investors in the last few years. As ASEAN becomes increasingly integrated on trade, developers and investors are increasingly seeking opportunities in new countries and Cambodia is high on many people's list, many thanks to the efforts and quality developments of Cambodian developers who were recognised here at the Awards.”Aired live on the Cambodia News Channel, the official broadcaster, the Cambodia Property Awards 2017 gala dinner was supported by co-sponsors Royal HM Trading Ltd and Jotun (Cambodia); official property portal Realestate.com.kh; supporting associations European Chamber of Commerce Cambodia and British Chamber of Commerce Cambodia; media partners The Phnom Penh Post, Southeast Asia GLOBE, Construction & Property, and Property Report magazine; official supplier International Diversity Distributor (IDD); official charity CARE International; and official judging supervisor BDO, the world’s fifth largest auditing and accountancy firm led by partner Lim Seng Siew in Cambodia.For more information about the Cambodia Property Awards, email info@asiapropertyawards.com or visit official website: AsiaPropertyAwards.com/Cambodia-Property-Awards/  DEVELOPER AWARDBest DeveloperWINNER: Borey Peng Huoth GroupBEST OF THE BEST AWARDSBest Condo Development (Cambodia)WINNER: Habitat by HabitatBest Housing Development (Cambodia)WINNER: Grand Star Platinum by Borey Peng Huoth GroupSPECIAL AWARDSpecial Recognition in Green DevelopmentWINNER: Phum Barang by MTP InvestDEVELOPMENT AWARDSBest Condo Development (Phnom Penh)WINNER: Habitat by HabitatHIGHLY COMMENDED: The Gateway by TACC (C.R.) LtdBest Housing Development (Phnom Penh)WINNER: Grand Star Platinum by Borey Peng Huoth GroupHIGHLY COMMENDED: Residence90 by Phnom Penh City CenterBest Residential Development (Siem Reap)WINNER: Phum Barang by MTP InvestHIGHLY COMMENDED: Les Bijoux d'Angkor by RGL Equity (Siem Reap) Co., LtdBest Office DevelopmentWINNER: The Vanguard by Phnom Penh City CenterHIGHLY COMMENDED: The Gateway by TACC (C.R.) LtdBest Retail DevelopmentWINNER: Copper Cambodia by LMYP Co., LtdHIGHLY COMMENDED: The EDGE by Phnom Penh City CenterBest Hotel DevelopmentWINNER: Courtyard by Marriott Phnom Penh by Khou Investment Co., Ltd  HIGHLY COMMENDED: Sun and Moon urban Hotel by Sun and Moon Hotel, LBL International and ADABest Mixed Use DevelopmentWINNER: The Gateway by TACC (C.R.) LtdHIGHLY COMMENDED: D’Seaview by Camhomes (Under HLH Group)DESIGN AWARDSBest Residential Architectural DesignWINNER: Residence90 by Phnom Penh City CenterHIGHLY COMMENDED: Habitat by HabitatBest Residential Interior DesignWINNER: Habitat by HabitatHIGHLY COMMENDED: Les Bijoux d'Angkor by RGL Equity (Siem Reap) Co., LtdBest Retail Architectural DesignWINNER: The EDGE by Phnom Penh City CenterBest Hotel Architectural DesignWINNER: Sun and Moon urban Hotel by Sun and Moon Hotel, LBL International and ADABest Hotel Interior DesignWINNER: Rosewood Phnom Penh by Vattanac CapitalHIGHLY COMMENDED: Courtyard by Marriott Phnom Penh by Khou Investment Co., LtdHIGHLY COMMENDED: Sun and Moon urban Hotel by Sun and Moon Hotel, LBL International and ADABest Landscape Architectural DesignWINNER: Grand Star Platinum by Borey Peng Huoth GroupHIGHLY COMMENDED: Habitat by HabitatFor up to date news and information, visit our news section at Realestate.com.kh now.
Cambodia Property Awards 2017: 11 shortlisted developers
Cambodia Property Awards 2017: 11 shortlisted developers
June 6, 2022, 5:04 p.m.
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Former Winners and new entrants go head-to-head in the country’s biggest annual real estate eventMaster developer Shukaku leads the race with a total of 5 nominationsSupport from various sectors have poured in, including top business associations and media outfitsMore than 300 guests are expected to attend the 24 March gala at Sofitel Phnom Penh Phokeethra PHNOM PENH, Cambodia – 23 February 2017Eleven of the Kingdom’s leading real estate developers have made the shortlist for the second annual PropertyGuru Cambodia Property Awards 2017.More than 30 projects located in prime investment destinations across Phnom Penh, Siem Reap and Sihanoukville joined this year’s competition, with the Winners and Highly Commended set to be revealed at the black-tie gala dinner on Friday, 24 March at the prestigious Sofitel Phnom Penh Phokeethra.Shukaku, a residential and commercial developer based in Phnom Penh, leads the list of official nominees, with a total of five nominations across the Development and Design categories, including Best Housing Development (Phnom Penh) and Best Retail Development. Its corporate headquarters, called ‘The Vanguard,’ is nominated for Best Office Development and will go up against two-time nominee TACC (C.R.) Ltd, developer of the mixed-use project called ‘The Gateway.’After several months of screening, deliberations and site visits, the Awards’ nine-member independent judging panel led by chairman Sorn Seap, founder and director of Key Real Estate Co Ltd, will meet one last time to finalise their assessment under the guidance of official judging supervisor BDO, the world’s fifth largest accountancy and auditing firm.“I certainly gained a lot of new knowledge from the other judges, who possess different skills than myself, at every stage of this competition,” says Sorn, who was elected head judge earlier this year. “In the last six months we exchanged expert opinions and technical considerations, and discussed various strengths of each entry. I feel so proud to be a judge for the Cambodia Property Awards 2017.”He adds: “The property boom in the past 10 years has seen a drastic change. In 2007 there were only two high-rise buildings in Phnom Penh – now we have hundreds across the city. Land prices have also grown exponentially for up to 75 percent in the last decade, and certain developments have been valued between USD3,500 and 4,500 per square metre. This growth has made the Cambodian real estate market very attractive for investors in the region and Asia.”Top country winners in Cambodia will be moving forward to the two-day PropertyGuru Asia Property Awards grand finale this November in Singapore to compete for more regional accolades.Hari V. Krishnan, CEO of PropertyGuru Group, comments: “We’re delighted to be back in Cambodia for a second year to promote the best projects and help property seekers in identifying the best developers to target for their dream homes and property investments.“Cambodia real estate has grown tremendously in the last few years, and we look forward to bringing lessons from the more established regional markets to this country, to assist with the maturation process. PropertyGuru Group’s presence in Cambodia through the Asia Property Awards helps us progress our company mission of helping people make confident property decisions."With much fanfare and media coverage, the inaugural Cambodia Property Awards in February 2016 was attended by more than 300 high-profile guests and VIPs, including His Excellency Dr Pen Sophal, representative of His Excellency Senior Minister Im Chhun Lim, who gave the keynote address.The 2017 event aims to surpass last year’s guest list. Support from various sectors have poured in, including Royal HM Trading Ltd and Jotun (Cambodia), the year’s co-sponsors, official property portal Realestate.com.kh, supporting associations European Chamber of Commerce Cambodia and British Chamber of Commerce Cambodia, and media partners Southeast Asia GLOBE, Construction & Property, and Property Report magazine.Other companies that received multiple nods include: Habitat, which is vying for three awards including Best Condo Development (Phnom Penh); twice-nominated Courtyard by Marriott Phnom Penh from developer Khou Investment Co., Ltd; and Les Bijoux d'Angkor, which is up for two awards.“Cambodia is a small but certainly fast-moving market, with plenty of room for everyone, and it’s a delight to see these returning and new developers joining the Asia Property Awards,” says Terry Blackburn, founder and managing director of the PropertyGuru Asia Property Awards.“There has always been a huge potential in Cambodia real estate, especially in the affordable housing segment, given that the Cambodian finance sector is more consolidated compared to other neighbouring countries in ASEAN,” he continues. “The Awards programme gives the local industry a big push for innovation and opportunity to continue raising the bar of excellence.”Before the much-anticipated gala dinner and ceremony, the editors of Property Report will also name Cambodia’s Real Estate Personality of Year, whose influence and achievements resonate across the kingdom.Tickets and partnership opportunities for the Cambodia Property Awards 2017 are still available. For details, email info@asiapropertyawards.com or call +66 (02) 204 9555.Below is the full shortlist of the PropertyGuru Cambodia Property Awards 2017:DEVELOPMENT CATEGORIESBest Condo Development (Phnom Penh)Habitat by HabitatThe Gateway by TACC (C.R.) Ltd Best Housing Development (Phnom Penh)Grand Star Platinum by Borey Peng Huoth GroupResidence90 by Shukaku Best Residential Development (Siem Reap)Les Bijoux d'Angkor by Les Bijoux d'AngkorPhum Barang by MTP Invest Best Office DevelopmentThe Gateway by TACC (C.R.) LtdThe Vanguard by Shakaku Best Retail DevelopmentCopper Cambodia by LMYP Co., LtdThe EDGE by Shukaku Best Hotel DevelopmentCourtyard by Marriott Phnom Penh by Khou Investment Co., LtdSun and Moon Urban Hotel by Ada / LBL International Best Mixed-Use DevelopmentD’Seaview by Camhomes (Under HLH Group)The Gateway by TACC (C.R.) Ltd DESIGN CATEGORIESBest Residential Architectural DesignHabitat by HabitatResidence90 by Shukaku Best Residential Interior DesignHabitat by HabitatLes Bijoux d'Angkor by Les Bijoux d'Angkor Best Retail Architectural DesignThe EDGE by Shukaku Best Hotel Architectural DesignSun and Moon Urban Hotel by Ada / LBL International Best Hotel Interior DesignCourtyard by Marriott Phnom Penh by Khou Investment Co., LtdRosewood Phnom Penh by Rosewood Phnom PenhSun and Moon Urban Hotel by Ada / LBL InternationalMore information are also available on the official website: AsiaPropertyAwards.com/Cambodia-Property-Awards/Borey Peng Houth, winner of the Best Developer (Cambodia) title at the first-ever Cambodia Property Awards, returns with a single nomination for its critically-acclaimed Grand Star Platinum project in the Best Housing Development (Phnom Penh) category. Already a double winner in 2016, Grand Star Platinum enters the awards race again due to further development and construction in the property.SPECIAL AWARDPhum Barang by MTP InvestNote: The Winners in the Best Developer, Best Residential Development (Cambodia), and Best Commercial Development (Cambodia) categories will be announced during the gala dinner on 24 March 2017. The Cambodia Real Estate Personality of the Year winner will be revealed by the editors of Property Report before the event.For up to date news and information, visit our news section at Realestate.com.kh now.
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Housing Market and Outlook Report 2016: Q & A with Hoem Seiha, director of research at VTrust Appraisal
Housing Market and Outlook Report 2016: Q & A with Hoem Seiha, director of research at VTrust Appraisal
June 6, 2022, 5:06 p.m.
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The housing market has risen sharply within these five years, with noticeable trends seen as an influx of new launches of condominium and cluster landed housing units that seems to flood the market at the moment.This offers even more options for prospective buyers to tour around looking for a new home that suits their style, preference and budget. In the marketplace, most still prefer landed properties; a few look onto high-rise condos; and many seek ones at which they could afford to pay with some short of finance scheme. Yet there remains a lot more to learn about the Phnom Penh Housing Market.Coming this December, VTrust Appraisal, a local firm specialized in property valuation, research and consultancy, is going to launch the first-ever and in-depth report on cluster landed housing market, unveiling every detailed statistics and indicator about the market, including current and historical supply, demand and sales performance, development and completion status, and all other crucial indicators stratified by home types and locations within the capital.To get insights into the launch of the report as well as some views on the housing market here in Phnom Penh, Realestate.com.kh sat down Mr. Hoem Seiha, director of research at VTrust Appraisal, to discuss the topic:ReakhNews: As we recall, VTrust Appraisal has just recently released a housing market report that covers the market views on cluster landed housing in Ruessei Kaev district, one of the 12 districts of the capital. For the whole market view here, could you tell us in brief how it is going now?Hoem Seiha: In general, the market trends still hold onto the positive line. However, 2016 sees a y-o-y drop in new launches of cluster landed housing supply if compared to 2015 - but still more than other years in the history. But the good news is that there will be a big increase in housing completion if compared to 2015. By 2017, many projects with a lot more units will be finished and ready for buyers to move in. However, the result of overall market slowdown has impeded the speed of constructions at some development projects, especially the smaller or nascent ones who tended to rely on presale budget to cover their construction spending.ReakhNews: You have mentioned that 2016 sees a small decrease in new launches and increase in completion, so could you give the figure and why it is so compared to other years?Hoem Seiha: We have collected all market data across the capital, but let us give an account of Ruessei Kaev district as an example. There, the figure of new sale launches of cluster landed housing supply was almost 2,500 units in 2015, but only 1,000 new units were launched during 2016. The supply has slowed because the new entries accumulated on the market inventory over these few years have outpaced the current demand. Therefore, most of developers have been busier selling off their existing inventory rather than challenging themselves by adding new units to the inventory. Nevertheless, in Ruessei Kaev district, about 2,800 of new units have been finished this year, and 3,300 others are slated to be completed by 2017. While this could be a small case, the scenario may apply across the capital. ReakhNews: You have mentioned that 2017 will see a lot of housing completion within the district, and this may apply across the market here in Phnom Penh. If so, how will be the take-up rate or the speed of people moving to live in the completed houses?Hoem Seiha: A lot of new families will move in for sure, but the relocation speed is not so fast here. Further, there are also a number of to-be completed housing units still listed on the market inventory. In Ruessei Kaev district, for example, some projects still have their partially-finished units listed on pre sale inventory, be it 17 percent in general.ReakhNews: Is there any possibility of pricing drop within the housing market here in Phnom Penh? Hoem Seiha: No sign yet. The general pricing may not increase because of slow market absorption and overwhelming supply, but the price will not drop at the moment through to 2017. However, if the slow market absorption rate still persists until 2018 given the current large volume of supply and rapid completion rate by 2017, some of weak developers who struggle to finish their units but underperform sales of their completed units will consider selling them off below the market prices to recover their spending.ReakhNews: It is so interesting to learn about this market view, and there seems a lot more to learn from your report on this subject. If I were someone who wishes to learn more in greater details about your cluster landed housing market report, where should I go?Hoem Seiha: As we mentioned earlier, we are going to launch our market report entitled “Housing Market and Outlook Report 2016 – Phnom Penh, or HMOR 2016-Phnom Penh” on 16 December at Raffles Hotel Le Royal from 8:30am onwards. The report will provide in-depth figures and statistics regarding cluster landed housing market here in Phnom Penh. Register for the conference now:Ms. Chhoeurn Sonita, General Manager, Entrepreneur Consulting,  Tel: (855)-12-90-63-40/ (855)-86-777-734/ (855)12642466 | email: entrepconsulting@gmail.com hsrealestateconference@gmail.com | Website: hmor-pp.weebly.com | office: #113 (Parkway Square), 2nd floor, Mao Tse Tung Blvd, Tuol Svay Prey 1, Phnom Penh, Kingdom of Cambodia
Knight Frank Asia-Pacific Prime Office Rental Index
Knight Frank Asia-Pacific Prime Office Rental Index
June 6, 2022, 5:04 p.m.
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Outcome of Trans-Pacific Partnership presents uncertainties and opportunities for flight-to-quality activities30 November 2016, Singapore – Knight Frank, the independent global property consultancy, today launches the Asia-Pacific Prime Office Rental Index for Q3 2016. The index monitors prime office rents in 19 cities across Asia-Pacific. For Q3 2016, eight cities registered positive rental growth, down from 10 in the previous quarter.Results for Q3 2016Knight Frank Asia-Pacific Prime Office Rental Index grew 0.6% in Q3 2016 compared to the previous quarter as a result of rising rents in eight markets and rental declines in six markets.Tokyo continues to experience the highest rental growth, although demand is expected to taper off as a strong supply pipeline looms.Singapore sees the largest decline in rental due to slowing global economy.Going forward, we expect rents in 14 cities to remain steady or increase, unchanged from last quarter’s forecast.While it is still early days, the results of the US election is likely to lead to more uncertainty across the region, with the likely end of the Trans-Pacific Partnership (TPP) a blow to export-dependent economies. Mr Nicholas Holt, Head of Research for Asia-Pacific, says, “The outlook for the regional economy is uncertain as the future of the TPP hangs. We expect a knock-on effect on office demand when export-driven economies are dealt a blow should the TPP be dissolved.“Given the significant amount of supply coming into a number of markets, we do see opportunities for occupiers to upgrade into superior space, as the pendulum swings from landlord to tenant-friendly conditions.”Download the full Knight Frank Report
Asia’s New Tiger Economy? Marc Townsend speaks to the CBRE Cambodia Marketview Report Q2 2016
Asia’s New Tiger Economy? Marc Townsend speaks to the CBRE Cambodia Marketview Report Q2 2016
June 6, 2022, 5:05 p.m.
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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!
Tuol Kork, Sen Sok Market Review H1 2016
Tuol Kork, Sen Sok Market Review H1 2016
June 6, 2022, 5:05 p.m.
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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.
Condominium Market Report H1 2016, with Chrek Soknim on Realestate.com.khTV
Condominium Market Report H1 2016, with Chrek Soknim on Realestate.com.khTV
June 6, 2022, 5:06 p.m.
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With the rate of condominium market demand and supply fluctuating in Cambodia, it is possible that 2016 will force real estate professionals to focus on a few issues that need to be addressed for the condominium market to be sustainable into the future. Particularly, there is an increasing need to develop new strategies to combat the decreasing demand for condominium units. This is according to Chrek Soknim, Century 21 Mekong ceo, during his presentation for Century21 Cambodia’s Condominium Market Report H1 2016 report.As Official Property Portal Partner of Century21 Cambodia, the Realestate.com.khTV team was there to catch the news as it happened.Political Hindrance There have been many laws that have been drafted and approved throughout the years to assist in the growth of the real estate sector, especially in terms of the condominium market. But when there is any signs of insecurity in the market or political sphere in Cambodia, foreign investors are put off and look to more established and less vulnerable markets with their investment. Soknim says that minor political disputes in 2016 are making foreign investors nervous when considering Cambodia.But Soknim states that this may be more of a national image issue than it is an actual reality of Cambodia in 2016. He explains, “even though the political situation in Cambodia looks stable and nothing changes, the confidence and sentiment of buyers has decreased in some respects. This may seem like a small issue to some people, but foreign investment in the industry makes up about 70 percent of the condominium market.”  OversupplyDue to projections pointing towards an increase in demand during the early months of 2016, many developers took the opportunity to apply to build new projects, especially in the condominium market. Unfortunately, this led to more new construction that the market may have anticipated. Soknim said, “Supply has increased dramatically this year —especially in January, February and March of 2016—with new projects being launched almost every day.”Century21’s Condominium market report indicates that 13,730 more units are expected to come up in the next few months of 2016.However, Seraj Sutton from Century21 Cambodia, at the same event, stated that he hopes to resolve increased supply by communicating with foreign investors by means of a “Global Strategy Business Development” tour, which will allow Century21 Cambodia to move from one country to another and keep investors informed about the opportunities in Cambodian real estate.Overseas DependencyA slowing down of the economies of neighboring countries such as China is also contributing to the amount of demand the Cambodia condominium market is receiving. Soknim clarifies that even if Cambodia still has lower rental and sales prices across the market, Cambodia has to lessen its dependence on overseas money. Cambodia is a dollar-dominant market and this may cause issues as well in the future.Despite some indications of an oversupply, Soknim and the rest of the Century21 Cambodia team believes that with a cautious mindset, and proactive investment policies, there is still much success to come in the Cambodian condominium market.Find thousands of condo listings on realestate.com.kh
Large condo supply offers short-term challenges but bright future, Century 21 report suggests
Large condo supply offers short-term challenges but bright future, Century 21 report suggests
June 6, 2022, 5:06 p.m.
Special Reports
In 2007, Camko City and three projects of De Castle, along with a few other projects, started off-plan in the northern part of Phnom Penh, being introduced into the capital’s housing market for the first time, with 1,700 units launched for presales off-plan that year. And it was, indeed, a nascent market at the time but still interesting enough to attract local and especially foreign buyers who speculated for returns at the resale market.Now it is not a nascent market anymore. It has been around for almost 10 years, with lots of condos situated across the capital, especially in the central district of Chamkar Mon, or northeastern parts of Phnom Penh.Today, a newly-released Century 21 record says there are in total 110 condo projects with 148 individual buildings, both finished and ongoing, or 37,570 units slated through to 2020.Supply has shot up remarkably within these two years, while the market goes with a mix of tones – a today challenge and tomorrow blessing.  That is said, current excessive supply is not only a pressure on the ability of the market to absorb in the short term but also a possibility that the market will reach equilibrium where buyers enjoy in the medium to long run.For the market challenge, there two key factors to look at: sale-to-stock ratio and market absorption rate.First, according to the Century 21 report, during the first half of 2016 saw a dramatic presale launch, about 13,300 of new units, into the capital’s condominium market but only 13 percent of them sold, compared to 18 percent and 31 percent in the same period in 2015 and 2014, respectively. Second, absorption strength in the first six months of 2016 was 3.8 years, slower than the market absorption rate in 2015, which was 2.8 years."It’s nothing surprise because the supply early this year rose too high for the current demand to catch up, said Chrek Soknim, executive officer of Century 21 Mekong.A market slowdown has been mainly dragged down by a huge number of new units added to stock last year and during the first half of this year, offering a hard time for the demand to take up in the short term, reads the same report".Touch Samnang, president of OCIC, which is investing in condominium project Olympia City, acknowledged, telling the Post that condo sales early this year has plummeted due to too much supply, adding that before most developers focused on “foreign and upper class market, but today they have turned around towards the average crowd.”Too much reliance on international market, further, contributes to this market challenge, for local affordability and trend are not strong enough to bolster the market growth. In 2014, a Park Café’s consumer survey among Phnom Penh’s active professional population showed only 1 percent earned a threshold of US$2,001 to US$5,000 per month and 6 percent earned a threshold of US$1,001 to US$2,000 per month.According to a Vtrust’s housing market survey in 2015, about 54 percent of the respondents said they expected to buy homes at prices within a range of US$30,000 to US$70,000 per unit, while today only around 40 percent of condo units in stock are with prices lower than US$70,000. However, only 9 percent of the local expectant buyers said they would choose to buy condos.On the other hand, an excess of market supply today could also potentially be a blessing for the capital’s condominium market in the medium to long term, be it 3 to next 6 years.It is an advantage because when the supply is widely available in the market, it offers numerous opportunities for expats and foreign investors who come to work and live in the capital, since some condominiums offer mixed-use options along with amenities that ease their ways of life.Kuy Vat, chairman and chief executive officer of Century 21 Cambodia, supports the viewpoint, saying, “When business people or investors want to come for businesses in Cambodia, what if we don’t have sufficient housing supply along with amenities
Knight Frank Asia Pacific Prime Office Rental Index 2016
Knight Frank Asia Pacific Prime Office Rental Index 2016
June 6, 2022, 5:06 p.m.
Special Reports
Realestate News
The Asia Pacific region is the place to be in right now if prime office property and rental growth is what you’re searching for. This is what one of the leading global property consultancy firms, Knight Frank, suggests in their Asia Pacific Prime Office Rental Index 2016 report. According to the firm’s thorough research, the Asia Pacific region has seen a combination of significant progress and constant stability in the first quarter of 2016. This is despite some prominent cities experiencing troubles and slowly slipping down the index.   In the Multi-sector Snapshot Q1 2016 report of Cushman & Wakefield, it is stated that in Beijing, “new supply in core markets elevated the overall vacancy rate, while rents remained stable.” While that may be true, Knight Frank’s data provides insight as to a projected decrease in rental returns and rent prices for the rest of the year for the city. Knight Frank’s report continues to explain that “in the first quarter of 2016, robust leasing demand from domestic firms in the finance and technology sectors drove net absorption to outstrip new supply in Beijing, arresting the downward trend in rents.” Also among the cities that saw a downward rental trend are Jakarta, Perth and Kuala Lumpur; where an expected increase in supply has forced property owners to reduce rent prices, further decreasing rental returns for their properties. This, however, did not slow down or do significant damage to the Asia Pacific Prime Office Rental Index. As the average vacancy decreased by 0.2 percentage points, the index grew by 1 percent in the first quarter and accelerated from 0.2 percent in the previous quarter. The highest contributor to this growth is probably Tokyo which showed the highest 3-month percentage increase of 3.4 percent, followed by Seoul at 2.6 percent where both cities show a projected increase for the next 12 months. As Head of Research for Knight Frank Asia Pacific, Nicholas Holt, puts it, “despite our longer term forecasts suggesting we are nearer to the top of the rental cycle in many markets, the next 12 months will see further rental growth in the majority of markets tracked as tight supply and steady demand prevails.” This growth is expected to be seen across 14 out of 19 cities which include Melbourne, Sydney, Shanghai, Hong Kong, Bengaluru, Mumbai, Taipei and Bangkok. "In Southeast Asia, Phnom Penh saw rents remain stable even as a surge in demand drove down the vacancy rate by 10.0 percentage points. With landlords vying to secure tenants as Hongkong Land’s Exchange Square nears completion, this trend is expected to continue." Considering that there are still many factors like government policy changes that may affect this continuous growth, Knight Frank is confident that prime office rental will remain to have stability at the very least. Holt explains, “While the macro-economic story across the region remains uncertain, office markets have tended to see rents hold up fairly well over recent months.” Recent years have showcased both extremes in terms of economic growth and the property market. It’s had its fair share of ups and downs, but as it continues to rise, it will really be an interesting and exciting time for the Asia Pacific region as it learns to nurture and cultivate its potential through proper investments.SEE KNIGHT FRANK CAMBODIA'S PROPERTY NOW
Land Prices up 4.8%: CBRE Phnom Penh Q1 2016 MarketView
Land Prices up 4.8%: CBRE Phnom Penh Q1 2016 MarketView
June 6, 2022, 5:06 p.m.
Special Reports
Realestate News
CBRE's Phnom Penh Q1 2016 MarketView has just been released! Chris Hobden, Manager of Research, Consulting & Valuation Services at CBRE Cambodia said that, “The Phnom Penh property market witnessed a significant increase in development activity over the first quarter, with investment in construction and residential project launches up 267% and 61.6%, year-on-year, respectively. Land prices appreciated by an average of 4.8% over the first quarter across Phnom Penh’s six principal districts. Notably, prices in Chroy Chang Va district rose by 8.8%, bringing its total land price appreciation to 208% since Q1 2010, driven by a combination of infrastructure improvements, local development activity and the continued expansion of the city’s core.”In summary:Land prices across principal districts appreciated by an average of 4.8% over the first quarter, with land prices in Chroy Chang Va and 7 Makara districts rising by 8.8% and 8.3% Q-o-Q, respectively.A total of 4,158 condominium units, across 8 projects, announced over Q1, representing a Y-o-Y increase of 61.6%.Average sales and rental prices broadly appreciated over Q1, with the exception of shopping mall rents, due to challenges faced by ageing retail stock in the context of upcoming supply.Limited new supply came on-stream over Q1, with 3 office buildings collectively adding 17,260 sq.m of leasable space to modern Phnom Penh stock.US$1.65bn invested in construction over Q1, compared to US$448m in Q1 2015, representing a significant Y-o-Y increase of 267%.Find out more: Download the full report!