PHNOM PENH: The CSX Index is currently at 484.02 Points down 1.31 Points or 0.27%
National bank of Cambodia Daily Exchange Rate is 4,083 KHR to the USD$.
CBRE released their second quarter insight on Cambodia’s market, and the expiration of growth heading towards third and fourth quarter. Eac was there to get the details
CBRE, Managing Director Lawrence Lennon and his team gave us an insight of the second quarter of Cambodia’s property market and what to expect for the future.
Lawrence Lennon explained during his presentation that the prominence of Cambodia as a manufacturing destination is on the rise, with about 7% of respondents stating they have plans to enter the market. This shows about Malaysia India and mainland China. In addition, less than 50% of those surveyed currently have an existing presence in Cambodia.
Lawrence believes Cambodia's garment industry will continue to hold strong potential in the market in the short term representing 44% of exports from Cambodia. The development of agro industrial segments is real low hanging fruit with agriculture for the representing 24% of GDP.
Commercial and office market was initially expected almost 100,000 new net usable office spaces by the end of 2022 due to covid19 about 40% will be completed with the remaining 60% next year only expect about 40,000 square meters of that usable office space will be completed 2022.
The occupancy for the second quarter is almost the same as the first about 67%. By the end of 2023 there will be a total nearly 1 million square meters office space in Phnom Penh.
Office spaces outside Phnom Penh continue to feel the downward pressure in terms of their rent. Landlords are offering 3% to 8.7% in order to catch up tenants.
Retail market, occupancy rate picked up, only slightly from 6 to 7%.
In the next six months, we expect to see around 190,000 square meters, that is all spaces coming online, increasing the total supply of retail spaces by 30% to around 800,000 square meters. Most of this will be shopping malls, the main being Aeon 3 and Chip Mong 271 Mega mall.
This year there has been 30 international, and 16 local brands expansions open up.
After the seminar organized by CBRE EAC News had the chance to interview Lawrence Lennon Managing Director on his thoughts on retail and the growth of the property market in the next two quarters.
Lawrence Lennon Managing Director of CBRE said,
“So I it's been a quarter of positives in many respects. This is the first time since the beginning of the pandemic we've seen actually most key segments moving in rental rates the right direction that either means stabilization or increase in terms of rental rates other than primary retail. So, overall it's a quarter of positives and a quarter of growth in turns on how things are going to develop foreseeable future. Expect those rates to either stabilize, or decrease to some extent we're seeing a lot of supply increasing in the office market and the retail market and it's likely that increase competition is going to increase the likely hood of seeing rental rates decrease to some extent”.
“We're gonna see growth in most of those segments it’s just how short term looking versus how long term you looking There’re gonna be short term challengers in the market without a doubt and that’s just a reflection of covid19 the state of the global economy, having said that if we are looking at a five year basis without a doubt things are going to rebound and it’s just linked to those fundamental’s that I mentioned before in terms of an exciting, strong segment. As I mentioned, it's going to be industrial logistics without a doubt.”
“We also spoke about the growth in the Industrial industry, with the new ford factory and garments factories opening up.”
“Some of Cambodia's competitive advantages come down to things like the cost of land, the cost of labor, its location, its right in the center of Southeast Asia. It's right in the center of ASEAN. So without a doubt when it comes to even just servicing markets on our border, whether it's Thailand or Vietnam, they're going to be very strong opportunities when it comes to manufacturing. So, without a doubt, it's likely that we'll see lots of growth in the short term midterm.”
Overall Lawrence mentioned there was some exciting things are going to happen in the future with Cambodia’s economy.
