Compass Real Estate > Cambodia Real Estate Information > News > The Apartment Occupancy Rate in Phnom Penh is high up to 84%. And by 2030 the number of apartments will increase by nearly 3 times!

The Apartment Occupancy Rate in Phnom Penh is high up to 84%. And by 2030 the number of apartments will increase by nearly 3 times!

2019-05-10
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Summary:In 2018, Phnom Penh, Capital of Kingdom of Cambodia, becomes a dark horse for overseas real estate investors.

In 2018, the Cambodian capital Phnom Penh Real Estate became a dark horse for overseas investors, some people can't help but ask, can you still invest in Cambodian real estate? How much value-added space is there?

According to recent property evaluation company, VTrust Appraisal. The number of Phnom Penh apartments will increase nearly three times by 2030, totaling 28,000 units.

Investing in apartments in Chamkamorn and Toul Kork districts in Phnom Penh is continue to be hot, as well as SenSok district will become a new target market. In other words, the market supply is still far from meeting demand. In the long run, Cambodian real estate market will still rise.
SenSok District will be the next investment hotspot in Phnom Penh

 According to a recent report by the real estate company VTrust Appraisal: In terms of the number of real estate, Chamkamorn District ranks first, with a total of 5,820 apartments. Distributed in 230 projects, equivalent to 64% of the total supply. The second place is the Toul Kork district. It has 1,446 residential units in 56 projects, accounting for 16% of the market. According to the report, There are 635 and 590 units in the Makara and Daun Penh districts, respectively. VTrust appraiser Hoem Seiha said the SenSok area is transforming into an important new business district, making it the next attractive investment target. He said: "The SenSok area is attracting the attention of various agencies. Obviously, large-scale construction is emerging."

The Number of Apartments in Phnom Penh will increase nearly 3 times by 2030

    

According to the report, there are currently 355 apartment projects in Phnom Penh, including 9021 units, which will increase nearly three times to 28,000 units by 2030.

According to Seiha ”the supply of apartments in Phnom Penh will grow at a compound annual growth rate of 10%”, which means, averagely 1580 units will be added every year from from now till 2030.

“As the population and urban traffic become more dense, Cambodia’s apartment market will improve, especially those that attract Chinese investors,” he said.

Seiha concluded “ Due to several factors, such as population growth, the number of foreigners living and working in Phnom Penh, economic growth, political stability, increased investment and tourism in China, and changes in the attitudes of the Cambodian people.

Phnom Penh apartment occupancy rate reached up to 84%.

Ping Serey, CEO of Angkor Real Estate in Cambodia, said that the apartment market will continue to grow in the next five years as more and more Cambodians choose to live in apartments.

Currently in Phnom Penh, the average rent of studio is $400-600 per month. Two-room apartments average $800-$1,200 per month, and three-room apartments average $1,500-$3,000 per month. In the fourth quarter of 2018, the total occupancy rate of Phnom Penh apartments was 84%.

 McKinsey: Cambodia is one of the few recent winners

According to the latest report of the Asian Development Bank (ADB), Cambodia’s gross domestic product (GDP) will continue to grow this year. Exports and domestic demand are expected to show strong performance. The economic growth rate of Cambodia this year and next year is forecast to be 7%.

 In the case of global economic instability, Cambodia’s GDP has achieved a 7% consecutive miracle, Asia’s first, and the world’s sixth. With this proud achievement, Cambodia has been rated as the “Asian Economic New Tiger” by the Asian Development Bank (ADB).

The international consulting firm McKinsey also recently released a report saying that Cambodia is one of the few "most recent winners" in emerging economies. Five of the eight key indicators, including domestic savings rate, government efficiency, innovation index, exports, and China Unicom Index, are ranked very high.

Cambodia is welcoming an unprecedented golden age.

Cambodia nowadays is like China back in 20 years. It is not only full of economic development, but also in the dividend period of the young and strong population. The average age in Cambodian is only 27.8 years old. The young people under 35 years old account for 70% of the total population. The whole country exudes the potential of youthful prosperity and becomes the core reason for attracting global enterprises and investors to stop in Cambodia and inject a lot of money.

  High-speed GDP growth, strong demographic dividends, etc., isn't it an important factor in China's doubled housing price growth over the past 20 years?

 In addition, as the world's leading currency, in addition to the United States, there are only a handful of other countries in the world that can use the US dollar, while Cambodia, the world's third-largest dollar asset country, adopts the US dollar and Riel dual-currency policy, with no exchange rate risk. And Cambodia's non-CRS countries, asset information security and security, to lay the most solid guarantee for asset appreciation.

The demand for residential housing in Cambodia will show explosive growth, ushered in an unprecedented era of real estate gold.

The average price of real estate in Phnom Penh has risen from $1,000/m2 in 2012 to the recent $2,400/m2, with an average annual increase of about 15%. In terms of rental income, taking Phnom Penh property as an example, the rental return rate of Phnom Penh houses averages 10.8%, up to 16%. It is a freehold property and does not require an inheritance tax.

Cambodia's current form is very good, attracting a large number of foreign investors. It is currently the best time in Cambodia. If you want to come to Cambodia to invest in real estate, it is now. (Source: Hopewell Overseas Real Estate)

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