CAMBODIA - ASIA’S NEW TIGER ECONOMY?
Presented by Marc Townsend
Managing Director – CBRE Vietnam & Cambodia
01 SEPTEMBER 2016
CAMBODIA OVERVIEW
H2 2016
3 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
GDP and GDP Growth Rate (2012– 2016F)
ECONOMIC OVERVIEW
Source: National Bank of Cambodia & Ministry of Economy and Finance Source: National Bank of Cambodia & Ministry of Economy of Finance
GDP Per Capita and Inflation Rate (2012– 2016F)
0
1
2
3
4
5
6
7
8
0
4
8
12
16
20
2012 2013 2014 2015E 2016F
GDP (Bn USD) GDP Growth (%)
0%
2%
4%
6%
8%
10%
2012 2013 2014 2015E 2016F
0
200
400
600
800
1000
1200
1400
GDP Per Capita (USD) Inflation Rate (%)
US$ 2.5 billion
US$ 2.1 billion
US$ 2.1 billion
US$ 2.3 billion
US$ 2.7 billion
US$ 2.9 billion
US$ 4.6 billionManufacturing
Real Estate
Agriculture
Financial
Energy
Services, food &
accommodation
Other
Source: National Bank of Cambodia & National Institute of Statistics
Values reflect
accumulated FDI
at end of 2014
4 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
Exports/Imports 2013 – 2016F
Source: Ministry of Commerce (Cambodia) & IMF/EIU Estimate
0
2
4
6
8
10
12
14
2013 2014 2015 2016 F
Exports (Bn USD) Imports (Bn USD)
ECONOMIC OVERVIEW
Trading Partners (2015)
Source:The Observatory of Economic Complexity
28.0%
14.0%
7.9%7.9%5.2%
4.6%
4.0%
28.4%
USA HKG UK GER
CAN SGP JPN Other
25.0%
22.0%
17.0%5.5%
5.4%
4.0%
21.1%
CHN THA VNM
KOR HKG SNG
Exports (2015) Imports (2015)
5 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
CAMBODIA DASHBOARD
Economic Indicators 2012 2013 2014 2015E 2016F
GDP (Bn USD) 14.054 15.251 16.734 18.219 20.231
GDP Growth (%) 7.3 7.4 7.1 7.0 7.1
GDP Per Capita (USD) 973 1,042 1,135 1,216 1,325
Inflation (%) 2.9 2.9 3.9 3 3.5
Source: National Bank of Cambodia, Ministry of Economy and Finance, & World Bank
Banking and Finance 2014 Q1 2015 Q1 2015 Q4 2016 Q1 To Date
KHR/USD (Official) 4,015 4,010 4,050 4,006 4,100
1-Year USD Lending rate (%)* 11.18 11.35 11.60 11.50 11.50
1-Year USD Deposit rate (%)* 4.27 4.30 4.45 4.25 4.25
Source: National Bank of Cambodia, 08 August, 2016 & CBRE Research
Real Estate Indicators 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2
Prime Condo Price (USD/SQM) 2,952 2,952 2,969 3,024 3,195 3,180
Prime Office Rent (USD/SQM/Month) 21.40 21.40 21.87 22.20 22.67 22.85
New Launched Projects 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2
Condominiums (Units) 2,573 702 3,060 689 4,158 2,796
Office with Strata-tile (SQM) 7,920 0 31,371 26,050 17,260 0
Source: CBRE Research, Q2 2016
Source: CBRE Research, Q2 2016
* Average rate of Aceleda, UCB, Canadia, Vattanac, Maybank, Bank of China, CIMB, & ABA
6 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
CAMBODIA INTERNATIONAL TRADE AND RELATIONS
“China appreciates Cambodia's
support’’
GUIYANG, Aug. 1 (Xinhua) -- China highly appreciates Cambodia's firm support on the South China Sea and Taiwan issues, vice Premier Liu Yandong said while meeting with Cambodian Deputy Prime Minister and Interior Minister SarKheng Sunday.Hailing that China and Cambodia have developed a good relationship, Liu said the two sides need to strengthen pragmatic cooperation in all areas and deepen cultural exchanges.Liu made the remarks on the sidelines of the 9th China-ASEAN Education Exchanges Week held in the southwestern city Guiyang.
7 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
INFRASTRUCTURE DEVELOPMENTS HIGHLIGHTS 2016
LAND & INVESTMENT
H2 2016
9 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH LAND PRICES CONTINUE TO APPRECIATE
Source: CBRE Cambodia, Q2 2016
Chrory Chang Va + 8.8% q-o-q
Duan Penh+ 5.9% q-o-q
7 Makara + 8.3% q-o-q
Chamkarmon + 2.6% q-o-qToul Kork +1.4% q-o-q
Sen Sok + 2% q-o-q
Phnom Penh Land Price Index (2010 – 2016 Q2)
0
50
100
150
200
250
300
350
2010 2011 2012 2013 2014 2015 2016 Q2
Chamkarmon Daun Penh 7 Makara
Toul Kork Sen Sok Chroy Chang VaQ
1 2
01
0 =
10
0
10 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
0%
2%
4%
6%
8%
10%
Fixed
Deposit
Rate
Residential
(Prime)
Office
(Prime)
Retail
(Prime)
Industrial
(SEZ)
Estimated Gross Initial Yield by Sector as of Q2 2016
CAMBODIA BROADENS INVESTMENT OPPORTUNITIES
Source: CBRE Cambodia, Q2 2016
11 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
INVESTMENT IN PHNOM PENH’S PROPERTY MARKET
Accumulated FDI
value in real estate
was US$2.9 billion
as of 2014.
Total investments
in real estate were
US$7.1 billion over
the first 7 months
of 2016,
representing a
719% increase.
PHNOM PENH RESIDENTIAL MARKET
H2 2016
13 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH CONDOMINIUM MARKET
No. of Condominiums Launched by District (Q1 2015-Q2
2016)
Source: CBRE Cambodia, Q2 2016
Phnom Penh Condominium Supply by Developer’s Origin
(2008-2018F)
Source: CBRE Cambodia, Q2 2016
-
1,000
2,000
3,000
4,000
5,000
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Chamkarmon Daun Penh 7 Makara
Toul Kork Chroy Chang Va Sen Sok
Por Sen Chey Mean Chey Russey Keo
0
5,000
10,000
15,000
20,000
25,000
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
F
20
17
F
20
18
F
Cambodia South Korea Taiwan Malaysia
Singapore China Japan
14 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
AVERAGE CONDOMINIUM PRICE & NEW LAUNCHES IN Q2 2016
BCK Condominium
(80 Units)
Average Prime Condominium Price in Southeast Asia
(Q2, 2016)
Source: CBRE Cambodia, Q2 2016
Average Phnom Penh Condominium Price per Sqm
Source: CBRE Research, Q2 2016
$1,250
$1,750
$2,250
$2,750
$3,250
$3,750
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Affordable Mid-Range High-End
The View
(384 Units)
Imperial Crown
(163 Units)
UK Condo
(145 Units)
Dingli Sunshine City
(650 Units)
Infinity 28
(98 Units)
Toul Sangke Green View Tower
(174 Units)
15 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH SERVICED APARTMENT MARKET
Serviced Apartment Supply by Grade (2010-Q2 2016)
Source: CBRE Cambodia, Q2 2016
Serviced Apartment Supply by Grade & District and
Occupancy Rate as of Q2 2016
Source: CBRE Cambodia, Q2 2016
Source: CBRE Cambodia, Q2 2016
Rental Rate Range by Bedrooms, Type / Grade (USD/Month)
Q2 2016
0
2,000
4,000
6,000
8,000
0
5
10
15
20
25
PH 3 2 1
0
5
10
15
20
25
0
2,000
4,000
6,000
8,000
1 2 3 PH
Grade A Grade BUSD Per Month
USD
/SQ
M/M
onth
Rental Range Per Month (Grade A)
Average Rent Per Sqm
0
1,000
2,000
3,000
4,000
5,000
6,000
2010 2011 2012 2013 2014 2015 2016 Q2
Below C Grade C Grade B Grade A
0%
20%
40%
60%
80%
100%
0
1,000
2,000
3,000
4,000
Below C Grade C Grade B Grade A Occupancy
Rental Range Per Month (Grade B)
Grade-A Serviced Apartment Rents (USD/SQM/Month) in
Mainland Southeast Asia
0
10
20
30
40
50
60
70
Phnom Penh Bangkok Hanoi Ho Chi Minh Yangon (All)
Source: CBRE Cambodia, Q2 2016
PHNOM PENH OFFICE MARKET
H2 2016
17 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH OFFICE SUPPLY
Source: CBRE Cambodia, Q2 2016
Office Supply and Occupancy Rate (2008 – Q2 2016)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
50,000
100,000
150,000
200,000
250,000
300,000
2008 2009 2010 2011 2012 2013 2014 2015 Q2 2016
Grade C Grade B Grade A Occupancy Rate
18 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH OFFICE RENTS Q2 2016
Average Quoting Rents by Grade in CBD and Non CBD*
Source: CBRE Cambodia, Q2 2016
*Exclusive Service Charge ($2-$5/sq.m/month)
A$28
C$10-$15B$16-$25
0510152025
2012
2013
2014
2015
2016 Q1
2016 Q2
Grade B (CBD) Grade B (Non-CBD)
0 5 10 15 20 25
2012
2013
2014
2015
2016 Q1
2016 Q2
Grade C (CBD) Grade C (Non-CBD)
19 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH OFFICE OCCUPANCY PROFILE Q2 2016
Demand by Sqm Leased (Q2 2016)
17%
21%
33%
22%
7%<50
50-99
100-199
200-499
500+
14%
13%
9%
8%
6%5%4%
5%
4%
3%
3%
2%
2%
22%
Logistics Banking & Finance
Diplomatic/Non-Governmental Organisations IT & Telecommunications
Investment & Consultancy Construction & Engineering
Accounting & Audit Medical
Media & Design Insurance
Agriculture Real Estate
Law Others
Office Space Occupied by Each Business Type (Q2 2016)
Source: CBRE Cambodia, Q2 2016
Source: CBRE Cambodia, Q2 2016
26%
25%
35%
11%
3%
1-Year or Less
2-Years
3-Years
4-5 Years
More than 5-Year
Lease Expiry Profile (Q2 2016)
Source: CBRE Cambodia, Q2 2016
20 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
STRATA TITLE OFFICE DRIVING SUPPLY
Phnom Penh Office Supply by Tenure Type by 2019F
Source: CBRE Cambodia, Q2 2016
$3,475/sq.mAverage Price H1 2016
96,760 sq.mStrata-title office space under construction as of Q2 2016
Diamond Twin Tower
NLA: 15,975 sq.m
(2018)
TK Royal One
NLA: 7,920 sq.m
(2017)
Fortune Tower
NLA: 22,000 sq.m
(2018)
East Commercial Center
NLA: 15,396 sq.m
(2018)
The Gateway
NLA: 23,090 sq.m
(2019)
FUTURE STRATA-TITLE OFFICE SUPPLY
$0
$1,000
$2,000
$3,000
$4,000
-
10,000
20,000
30,000
40,000
Chamkarmon 7 Makara Toul Kork
Grade A Grade B Average Price per Sqm
Dingli Sunshine City
NLA: est. 12,760 sqm
(2018)
21 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH OFFICE IN REGIONAL CONTEXT
Prime Office Rent in Southeast Asia
-5%
-3%
0%
3%
5%
8%
10%
(20)
30
80
130
180
USD/SQM/Month % Change
Source: CBRE Research, Q2 2016
0%
2%
4%
6%
8%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Prime Strata-title Office Price and Estimated Yield in the
Southeast Asia
Source: CBRE Research, Q2 2016
Office Supply (Thousand Sq.m) in Southeast Asia as of Q2
2016
Source: CBRE Research, Q2 2016
- 2,000 4,000 6,000 8,000 10,000
Jakarta
Bangkok
Singapore
Kuala Lumpur
Manila
Ho Chi Minh
Hanoi
Phnom Penh
Yangon
New Office Supply (Thousand Sq.m) in Southeast Asia
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Jakarta
Bangkok
Singapore
Manila
Hanoi
Ho Chi Minh
Phnom Penh
Yangon
2016 F 2017 F 2018 F
Source: CBRE Research, Q2 2016
PHNOM PENH RETAIL MARKET
H2 2016
23 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH RETAIL MARKET
Phnom Penh Retail Supply by Type 2007 – 2018F
Source: CBRE Cambodia, Q2 2016
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
F
20
17
F
20
18
F
Shopping Mall Community Mall Retail Podium Other Retail
24 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH RETAIL MARKET RENTS
Retail Rents by Type Q2 2016
Source: CBRE Cambodia, Q2 2016
$31.4
$48.3
$30.0
$52.5
$-
$20.00
$40.00
$60.00
$80.00
$100.00
Prime Shopping
Mall
Prime Retail
Podium
Prime High
Street
Prime Retail
Arcade
Rental Rate Range Average Rental Rate
AEON MallPhnom Penh, Cambodia
Shopping Mall – AEON
Retail Arcade – Naga Citywalk
Retail Podium – Exchange Square
25 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
AEON MALL• Location: Chamkarmon Dist.• 104,000 sqm GFA• Open: Q2, 2014• Occupancy: 100%• Positioning : Mid to High End
PHNOM PENH EXISTING SUPPLY
VATTANAC TOWER• Location: Daun Penh Dist.• 7,000 sqm GFA• Open: Q1, 2014• Occupancy: 70%• Positioning : Luxury
TK AVENUE• Location: Toul Kork Dist.• 11,000 sqm GFA• Open: Q4, 2013• Occupancy: 95%• Positioning : Mid to High End
26 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH RETAIL MARKET RENTS
Average Size Occupied and Average Rents per Sqm by Different Type of Retail Use at Prime Shopping Malls (Q2/2016)
Source: CBRE Cambodia, Q2 2016
0
20
40
60
80
100
120
0
100
200
300
400
500
600
Jewlery &
Watches
Beauty &
Health
Food &
Beverage
Sporting Goods Financial
Services
Fashion &
Accessories
Book &
Stationery
Houseware &
Electronics
Average Size Average Rent per Sqm
SQM USD/SQM
27 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH PRIME RETAIL USES
Prime Retail Uses (Q2 2016)
0%10%20%30%40%
Shopping Mall
Financial & Professional
Food & Beverage
Fashion & Accessories
Entertainment & Leisure
Electronics
General Store
Automobile
Health/Medical
Book/Stationary
Hair & Beauty
Other
0% 10% 20% 30% 40%
High Street
Source: CBRE Cambodia, Q2 2016
28 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH RETAIL IN REGIONAL CONTEXT
0
5
10
15
20
25
30
-
100
200
300
400
500
Prime Rent Prime Management Fees
Rent
(USD
/SQ
M)
Managem
ent F
ee (U
SD
/SQ
M)
Prime Retail Rent & Prime Management Fee in Southeast
Asia
Source: CBRE Research, Q2 2016
Future Retail Supply (SQM) in Southeast Asia
0 200,000 400,000 600,000 800,000 1,000,000
Singapore
Metro Manila
Bangkok
Ho Chi Minh
Hanoi
Phnom Penh
2016F 2017F 2018F
Source: CBRE Research, Q2 2016
29 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
PHNOM PENH
FUTURE RETAIL SUPPLY
Parkson PPCC
Developer Hassan
GFA(sqm) 70,000
Parkson Lion City
Developer Parkson
GFA(sqm) 80,000
Exchange Square
Developer Hongkong Land
GFA(sqm) 13,000
Olympia City
Developer OCIC
GFA(sqm) 100,000
The Peak
Developer Oxley Worldbrige
GFA(sqm) TBC
The Bridge
Developer Oxley Worldbridge
GFA(sqm) 21,750
Naga City Walk
Developer Naga Corp
GFA(sqm) 4,000
AEON Mall 2.0
Developer AEON
GFA(sqm) 151,000
2017
2020
2017
2016
2017
2018
Orkide The Royal Mall
Developer Orkide Villa
GFA(sqm) 54,000
2019
Downtown 93
Developer PMD
GFA(sqm) 3,840
2016
Naga 2
Developer Naga Corp
GFA(sqm) 13,248
20182018
The Gateway
Developer TACC
GFA(sqm) TBC
2019
2018
SIEM REAP AND SIHANOUKVILLE
H2 2016
31 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
DEVELOPERS LOOKING BEYOND PHNOM PENH
Sihanoukville Siem Reap
32 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
ARRIVALS FUELING RESORT DEVELOPMENT
“Could Cambodia’s Southern Coast be Asia’s
next resort hot spot?” Property Report, March
2016
Source: CBRE Cambodia, Q2 2016
Coastal & Island Developments
Song Saa Island
27 Luxury Villas
Alila Villas Koh Russey
227 Luxury Residences
Morokot Island (Koh
Pous)
Mixed-Use (Residential,
Hotels, Casino)
Koh Rong
Intergrated Resort (5-
Star Hotels…)
Dara Sakor
Mixed-Use (Hotels,
Golf course, Casino)
Koh Krobey/Koh Chanloh
(Six Senses)
40 Pool Villas, Spa, …
33 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
CAMBODIA RESORT PROPERTY IN REGIONAL CONTEXT
Luxury Resort Villa Price in Southeast Asia
Source: CBRE Cambodia, Q2 2016
High-End Resort Condominium Price in Southeast Asia
Source: CBRE Cambodia, Q2 2016
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Sale Price Range (USD/SQM) Average Sale Price (USD/SQM)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Sihanoukville Da Nang Samui Hua Hin Phuket Bali
Sale Price Range (USD/SQM) Average Sale Price (USD/SQM)
CAMBODIA MARKET OUTLOOK &
TRENDS
H2 2016
35 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
CAMBODIA - FOREIGN RETIREE MARKET POTENTIAL
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000
Portugal
Korea
Israel
New Zealand
Canada
Finland
Sweden
United Kingdom
Austria
Denmark
Netherlands
Switzerland
Source: OECD & CBRE Research
Median Annual Net Income (USD) for OECD Residents Aged 65 and Over
Annual Cost of Living: Sihanoukville Siem Reap Phnom Penh
36 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
CAMBODIA - FOREIGN RETIREE MARKET POTENTIAL
Source: International Living, 2016
The 2016 Annual Global Retirement Index—Final Scores
RANK COUNTRYBUYING &
RENTING
BENEFITS &
DISCOUNTS
VISAS &
RESIDENCE
COST OF
LIVINGFITTING IN
ENTERTAINMEN
T & AMENITIESHEALTHCARE
HEALTHY
LIFESTYLE
INFRASTRUC
TURECLIMATE
FINAL
SCORES
1 PANAMA 86 100 100 89 97 100 89 95 90 89 93.5
2 ECUADOR 100 99 83 90 92 95 85 95 85 100 92.4
3 MEXICO 89 88 90 88 91 96 87 86 90 88 89.3
4 COSTA RICA 88 79 87 86 95 88 92 98 88 83 88.4
5 MALAYSIA 94 67 87 90 95 100 94 90 87 74 87.8
6 COLOMBIA 88 65 80 92 89 94 94 95 90 90 87.7
7 THAILAND 90 72 70 90 90 96 88 80 89 83 84.8
8 NICARAGUA 96 72 77 98 88 84 80 97 70 80 84.2
9 SPAIN 82 69 77 82 81 90 86 88 93 88 83.6
10 PORTUGAL 82 75 77 85 81 81 81 88 93 86 82.9
11 MALTA 80 75 78 83 94 82 83 75 85 85 82.8
12 HONDURAS
(ROATAN)77 72 87 78 100 76 79 75 87 82 81.3
13 FRANCE 63 75 77 57 88 96 88 80 93 83 80.0
14 BELIZE 74 83 80 78 98 70 83 8572 67 78 79.6
15 PERU 87 57 75 95 85 74 84 72 80 85 79.4
16 ITALY 62 70 70 74 82 90 80 85 92 83 78.8
17 PHILIPPINES 63 75 67 85 92 90 88 67 89 69 78.5
18 URUGUAY 67 63 67 65 90 98 88 73 90 83 78.4
19 DOMINICAN
REPUBLIC92 72 63 85 88 78 80 77 80 67 78.2
20 IRELAND 80 75 77 65 98 84 72 72 93 65 78.1
21 CAMBODIA 76 57 80 100 83 89 75 83 63 74 78.0
22 GUATEMALA 82 63 77 91 75 78 75 70 76 85 77.2
23 VIETNAM 70 63 60 90 65 58 74 72 57 76 68.5
37 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
CAMBODIA INDUSTRIAL SECTOR ATTRACTING INVESTMENT
Source: CBRE Cambodia, Q2 2016
Prime Rents for Ready-Built Factories in Cambodia Q1 2016
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
SEZ Standalone Industrial Park SEZ Standalone
Phnom Penh Sihanoukville
38 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
CHINA DRIVING ARRIVALS, AIRLIFT AND DEVELOPMENT
Cambodia Bayon Airlines, a locally registered subsidiary of China’s state-
owned Aviation Industry Corporation of China (AVIC confirmed that the
airline was considering purchasing ARJ21 aircraft for its fleet.
A group of Chinese investors plan to establish a $3 billion international resort center in Sihanoukville province to tap into the Kingdom’s burgeoning tourism industry.
The $3 billion investment comes from a China-based consortium in the Cambodia Golden Silver Gulf Resort project.
0%
10%
20%
30%
40%
50%
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2012 2013 2014 2015 2016H1
Total (ex. China) China Arrivals
Y-o-Y Growth (All) Y-o-Y Growth (China)
International Total Arrivals and % Change (2012 – H1 2016)
Source: Ministry of Tourism, Cambodia
39 CAMBODIA: ASIA’S NEW TIGER ECONOMY?CBRE CAMBODIA
CAMBODIA MARKET MOVING FORWARD
• Stable GDP
growth of circa
7%
• FDI from wider
Asia Pacific
region to
remain strong
• Land price
appreciation to
soften over
short-term
• Domestic
companies to
become
increasingly
cautions in run-
to 2018 election
• Infrastructure
improvements to
enhance viability
of Industrial
property
schemes
• Increased
diversification of
manufactured
goods across
two main SEZs,
Sihanoukville
and Phnom
Penh
• Demand for
high-quality
office stock to
be supported
principally by
expansion of
established
international
occupiers
• Aging office
stock to
continue to see
downward
pressure on
rents in wake of
new supply
• Overall retail
supply to be
increasingly
driven by mix-
used and landed
residential
schemes
• Aging retail
stock to
renovate
/reposition to
compete with
new supply
• More mid-range
international
brands to
explore
Cambodia
opportunities
• Number of
planned
condominium
projects to
reposition,
revise
development
concept or
delay
construction
• Residential
developers
looking to
explore
opportunities
beyond Phnom
Penh
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