|
All sectors of the property market, namely residential, retail and offices, are expected to see an increase in supply in 2019, particularly in the first half of the year due to a spillover of uncompleted projects from the end of 2018.
With the upward trend of mid- to high-end, condominium projects being completed in Phnom Penh to continue. According to James Hodge, associate director of CBRE, there will be a 120% increase in condominium supply this year, but should be meet by sufficient demand. On the other side, will be expecting moderation in rental rates because of the supply coming into the condominium sector, but demand for serviced apartments still looking good and occupancy rate in that sector still remain strong.
Retail supply is set to surge this year. Four new projects that were delayed last year due to construction issues are scheduled for completion by end of 2019. As a result, the influx of new retail spaces and in addition to Aeon Mall Sen Sok City opening in 2018, vacancy rates forecast to increase in 2019.
China remains the Kingdom’s major foreign investor with its companies accounted for about one third of the capital investment in Cambodia’s construction and real estate sectors, East Asia Forum reported in 2018. This is seen predominantly in coastal Sihanoukville. The growth lies chiefly in the hospitality and residential sectors, but Hodge notes that Sihanoukville also has a good manufacturing base and that a few office developments is taking place.
One prominent Chinese project is the construction of Phnom Penh’s third ring road, linking National Road 1 and National Road 4. Its development could see the capital city’s outer boundaries expanded and Hodge further shared that government-planning policy looks to be supporting that shift very strongly.
Land prices in Cambodia are increasing rapidly but remain comparatively low for the region. This makes the Kingdom an attractive market for investors, especially in Phnom Penh, which has the third-highest rental yield in Asia.
|
