Cambodia, Vietnam and Thailand real estate market big PK, 2018 data disclosure!

Interview some people in the annual real estate survey and investment guide. Respondents shared their views on the market. They all wanted to buy real estate and believed that the industry would change dramatically in Cambodia in the next few years.

By comparing the real estate of Cambodia and its neighbours, we can find that Cambodian real estate is following the footsteps of Thailand and Vietnam.

According to the quarterly report of CBRE Real Estate Consulting, Thailand, sales of condominium developers to foreigners, especially Chinese citizens, have increased significantly in Bangkok.

The report shows that apartment supply in downtown Bangkok increased by more than 50% in the second quarter of this year. In addition, it pointed out that the market was in a stable period after the introduction of record quantities last year. Many people are optimistic about the growing supply of apartments in Phnom Penh.

Ho Chi Minh City in Vietnam launched more than 50% more residential projects in the first quarter than in the same period last year. Data released by Vietnamese real estate company JLL in its quarterly report show that most of the growth is driven by medium-level real estate.

This indicator indicates the direction of Cambodia's development in the coming years. A survey conducted this year by Realestate.com.kh (Cambodian Real Estate Network) shows that more than 40% of respondents who plan to buy property next year expect the cost to be less than $50,000.

In fact, even in Cambodia, demand is slowly rising with prices, and we may see more options in the coming years.

For many developers in Cambodia, the supply of apartments will soon be saturated. To reduce this impact, more and more people are creating mixed-use spaces that provide retail, residential and office space in the same place

Will this happen in Thailand and Vietnam?

In Bangkok, the supply of office buildings is on the rise and is expected to exceed 9 million square meters in the near future. Vacancy rates are also declining. In the second quarter of this year, the vacancy rate was only 6.8%, compared with 7.3% in the previous quarter.

The same is happening in Ho Chi Minh City. According to the CBRE quarterly report, the supply is on the rise, mainly depending on Class B space. The occupancy rates of Grade A and Grade B office buildings are 92% and 95% respectively.

In Hanoi, only a new class B space has been added in the past three months. Although the average rent has risen slightly, the overall occupancy rate is still as high as 93%.

This shows that demand in Vietnam's capital is healthy.

Comparison among Cambodia, Thailand and Vietnam

Retail trend

Retail space made a huge leap in 2018. It has even been called the "Year of Shopping Malls" by the local media. Over the past year, more than six major shopping malls have opened, resulting in a total retail area of more than 350,000 square metres, a significant increase over 200,000 square metres a year ago.

According to CBRE Cambodian Real Estate Agency Group, the supply of Phnom Penh real estate increased by 95% in the first quarter of this year. By contrast, Bangkok rose 4%, Ho Chi Minh City and Hanoi rose 26% and 21%, respectively.

However, Bangkok remains the region's retail space giant. It has 8 million square meters of retail space, occupancy rate of 95%. CBRE survey shows that this is one of the highest rates in Southeast Asia. The retail space in Phnom Penh only accounts for more than 80%.

Fortunately, the rent rate in Cambodia is still very low compared with the surrounding market. CBRE data show that high-quality ground and first floor retail space is rented for less than $50 a month. In Bangkok and Ho Chi Minh, rents are more than twice the comparable space, and Hanoi's prices hover around $200 a month.

Healthy competition

When looking at developing economies in Southeast Asia, people often confuse Thailand with Vietnam. Although Cambodia still has a long way to go in terms of economic development, it is clear that the country's development track is not lagging behind its flanking countries.

In fact, despite Thailand's relatively stable economic reputation, its GDP growth has been at a disadvantage over the past decade. After being hit by the global financial crisis in 2008, it returned to growth at nearly 8% in 2010, but has hardly changed since then.

Cambodia's growth rate in the past decade has ranged from 5% to 7%, which is similar to Vietnam's. There is no doubt that China's influence has greatly promoted Cambodia's economic growth.

However, it is predicted that as Chinese and Vietnamese enterprises move from the labour-based economies themselves, they may move production facilities to Cambodia in the next few years.