Cambodia: The serviced apartment market in Cambodia is “ripe for expansion” according to CBRE.
Thida Ann, senior associate director of CBRE Cambodia, said in her recent presentation at the Real Estate Market & Outlook Conference (REMOC), Phnom Penh has the largest share of serviced apartment supply. According to CBRE market research, occupancy rates across the entire Phnom Penh serviced apartment market currently stands at 85.8 per cent.
The CBRE Cambodia Q4, 2015 report showed than an estimated 35,000 expats apply for permits to work in Cambodia each year. This compares to the supply of Phnom Penh serviced apartments which is currently at 6,494 units.
This market-supply imbalance is “one of the main reasons price per square metre is relatively high in the capital’s serviced apartment market, compared to comparable markets in Bangkok and Ho Chi Minh,” says the research. Some monthly rental rates in the hot residential corridors of BKK and Daun Penh reach as high as $3,500 per month.
“With Cambodia being classified as a high-growth country, the rising quality of living, and increase in volume of foreign talents and tourists creates demand for quality serviced residences,” said Jeremiah Lee, managing director of Singaporean-based development company, Kingsland Global.
Kingsland is soon to enter the serviced apartment sector in Phnom Penh with its One18 Residences project, nearing completion, on Street 118.
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