CBRE CAMBODIA · CBRE CAMBODIA 2 Q1 2019 MARKETVIEW INVESTMENT INTO CONSTRUCTION A NOTEWORTHY...

CBRE CAMBODIAQ1 2019 MARKETVIEW PRESENTATION

APRIL 2019

2 Q1 2019 MARKETVIEW CBRE CAMBODIA

INVESTMENT INTO CONSTRUCTION

A NOTEWORTHY INCREASE IN CONSTRUCTION INVESTMENT

INVESTMENT VALUE

FROM JAN – FEB 2019$1.36B

0

200

400

600

800

1000

1200

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

20

16

Q2

20

16

Q3

20

16

Q4

20

17

Q1

20

17

Q2

20

17

Q3

20

17

Q4

20

18

Q1

20

18

Q2

20

18

Q3

20

18

Q4

20

19

Q1

E

No.

of Pro

jects

Million U

SD

Construction Investment Value No. of Projects

Source: Ministry of Land Management, Urban Planning and Construction

RESIDENTIAL

LANDED PROPERTY

OFFICE

RETAIL


CONDOMINIUM STOCK INCREASE

1091 UNITS COMPLETED OVER THE COURSE OF Q1 2019

MID-RANGE

SEGMENT89.3%0%

20%

40%

60%

80%

100%

120%

140%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

F

20

20

F

20

21

F

Affordable Mid-Range High-End % Change

3 PROJECTS

HIGH-END

SEGMENT10.7%

Q1 COMPLETIONS

(1091 UNITS)

SUPPLY

INCREASE7.69%

SHARE OF NEW COMPLETIONS

Source: CBRE Research, Q1 2019


AFFORDABLE LAUNCHES ON THE RISE

5 NEW LAUNCHES OVER THE COURSE OF Q1 2019

SEVEN RESIDENCEPHNOM PENH

STARTHMOR MADOM

RESIDENCE L BOREY KEYLA

ROMDUOL CITY – PHASE 1

MORE THAN

1,500 UNITS LAUNCHED OVER THE COURSE OF Q1 2019

*MID-RANGE


CONDOMINIUM SALES RATES

MID-RANGE SEGMENT SEES NOMINAL FALL

UPWARD ADJUSTMENT

Q-O-Q FOR HIGH-END

AND AFFORDABLE SEGMENT

SLIGHT REDUCTION IN MID-RANGE

FROM $2,562/SQM TO $2,559/SQM

$1,250

$1,750

$2,250

$2,750

$3,250

$3,750

Q1

2015

Q2

2015

Q3

2015

Q4

2015

Q1

2016

Q2

2016

Q3

2016

Q4

2016

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q4

2018

Q1

2019

Affordable Mid-Range High-End

1%LESS THAN



$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$0

$4

$8

$12

$16

$20

3BR 2BR 1BR Studio

$0

$5

$10

$15

$20

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Studio 1BR 2BR 3BR

Rental Range Per Month (High-End)

Average Rent Per Sqm

High-End Mid-Range

Rental Range Per Month (Mid-Range)

CONDOMINIUM RENTAL RATES HOLD STEADY

NO SIGN OF RENTAL REDUCTION IN LIGHT OF HIGH SUPPLY

SLIGHTLY ABOVE $14.2/SQM

FOR HIGH-END SEGMENT

NO CHANGE SEEN WITHIN

MID-RANGE SEGMENT


RESIDENTIAL

LANDED PROPERTY

OFFICE

RETAIL


LANDED PROPERTY

EXISTING AND FUTURE PROJECTS

THE MAJORITY OF BOREY PROJECTS

ARE LOCATED IN SEN SOK DISTRICT

0

5

10

15

20

25

30

35

40

45

50

Num

ber

of Pro

jects

Existing Future

CHROY CHANGVAR GAINING

POPULARITY AMONGST MID-RANGE

TO HIGH-END DEVELOPERS.



LANDED PROPERTY

QUOTED LANDED PROPERTY SALES RATES BY TYPE

FLAT AND LINKHOUSE ARE THE MOST POPULAR UNIT TYPES

$101,144 $108,505 $202,775

$262,472

$789,629

$0

$300,000

$600,000

$900,000

$1,200,000

$1,500,000

$1,800,000

$2,100,000

Flat Linkhouse Shophouse Twin Villa Villa*

Price Range Average Price

*


RESIDENTIAL

LANDED PROPERTY

OFFICE

RETAIL

12CBRE CAMBODIA Q1 2019 MARKETVIEW

OFFICE SUPPLY 2008 – 2021F

CENTRALLY OWNED OFFICE SUPPLY BY Q1 2019

Q1 2019

OCCUPANCY RATE BY Q1 2019 85.96%

GRADE A OFFICE

53,265 SQMGRADE B OFFICE

105,441 SQMGRADE C OFFICE

190,565 SQM


OCCUPANCY RATES SAW AN INCREASE OF 0.6% Q-O-Q

SQM

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

F

20

20

F

20

21

F

Grade C Grade B Grade A Occupancy Rate


OFFICE RENTAL RATES 2012 – Q1 2019

SLIGHT UPWARD ADJUSTMENT FOR GRADE B WITHIN CBD


GRADE B RENTS WITHIN THE CBD SAW AN INCREASE OF $0.5/SQM/MONTHDUE TO AN UPWARD ADJUSTMENT IN EXISTING STOCK.

$5.0

$10.0

$15.0

$20.0

$25.0

2012 2013 2014 2015 2016 2017 2018 Q1 2019

Grade-B (CBD) Grade-B (NCBD) Grade-C (CBD) Grade-C (NCBD)


OFFICE SUPPLY

MORE STRATA-TITLE OFFICE IN 2019

INCREASE IN TOTAL STOCK DUE TO THE COMPLETION OF

DIAMOND TWIN TOWER, ADDING 19,812 SQM

Source: CBRE Research.Q1 2019

SQM

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

20

18

20

19

F

20

20

F

20

21

F

Grade B Grade A

45.3%


3

6

4

5

8

10

12

2

OFFICE SUPPLY

MAP OF FUTURE OFFICE SUPPLY

1. Chief Tower2. Downtown 933. One Park4. TK Central5. Fortune Tower6. C5 Olympia City7. Maritime Tower

8. Soma Group HQ9. Star City10. Chip Mong Baktouk Commercial Center11. The Gateway12. The Commune13. The Point

9

11

Strata-titleCentrally Owned

13

1

7

RESIDENTIAL

LANDED PROPERTY

OFFICE

RETAIL


RETAIL SUPPLY HAMPERED BY DELAYS IN COMPLETION

PROJECTS WITH A TOTAL OF 19,965 SQM OF NLA

WERE DELAYED TO MID-20192

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F

Shopping Mall Shopping Center Community Mall Retail Podium



NEW RETAIL LAUNCH

CHIEF TOWER ADDED 1,870 SQM TO THE SUPPLY PIPELINE

CHIEF TOWERCIRCA 1,870 SQM

OF RETAIL SPACE


QUOTED RENTAL RATES ACROSS DIFFERENT RETAIL FORMATS

SAW DOWNWARD ADJUSTMENT

$29.4 $29.8

$25.1$28.2

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

Prime Shopping Mall Prime Retail Podium Community Mall Prime High Street

Rental Rate Range Average Rental Rate

DOWNWARD ADJUSTMENT FOR PRIME RETAIL SPACE

3.9% ENDING THE QUARTER AT $29.4/SQM



RETAIL

VACANCY REMAINS STABLE

MANY RETAIL PROJECTS POSTPONED,

VACANCY RATES STILL REMAIN AT THE 10-YEAR LOW

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019


James Hodge

Associate Director

E: [email protected]

M: +855 89 333 722

© 2019 Advantage Property Services Co., Ltd, trading as CBRE Cambodia, part of the CBRE affiliate network. All materials presented in this report, unless specifically indicated otherwise, is under copyrightand proprietary to CBRE. Information contained herein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt itsaccuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency of theinformation of this publication. This report is presented for information purposes only, exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offerto sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted

to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorized publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable forany loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.

CBRE Cambodia | +855 23 964 099 | [email protected] | www.cbre.com.kh

T H A N K Y O U !

James Hewson

Manager


M: +855 85 333 228

Kinkesa Kim

Senior Analyst


M: +855 95 777 582

RESEARCH & CONSULTING

For more info, please contact:

CBRE CAMBODIA · CBRE CAMBODIA 2 Q1 2019 MARKETVIEW INVESTMENT INTO CONSTRUCTION A NOTEWORTHY...

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