Rental prices for prime Phnom Penh office space saw an increase of 0.6 per cent in the first quarter of 2015, according to the Knight Frank Asia Pacific Prime Office Rental Index.
Knight Frank country manager Ross Wheble said that with a sustainable future supply pipeline, the office market in Phnom Penh is likely to remain relatively stable over the short to medium term with new completions able to meet future demand growth.
The buildings monitored in Phnom Penh for the Knight Frank Asia Pacific Prime Office Rental Index are Canadia Tower, Vattanac Capital Tower and Phnom Penh Tower, he added.
The report said that monthly prime office rent net prices in the capital were priced at $22.1 per square metre and $29.1 per square meter (after services, taxes and charges) in the first quarter.
Wheble said that property prices in Cambodia are still relatively low compared with more developed countries such as Thailand, Malaysia and Singapore.
“Throughout Southeast Asia, markets remained fairly robust. Bangkok topped rental growth across the region with a 3.8 per cent increase quarter-on-quarter as the market continues to defy the political uncertainty still hanging over the country. In Phnom Penh, rents climbed marginally despite a significant increase in net absorption as landlords vied for new tenants in a more competitive market following the completion of Vattanac Capital Tower.”
The report studied about 19 cities in the Asia Pacific such as Phnom Penh, Brisbane, Melbourne, Perth, Sydney, Beijing, Guangzhou, Shanghai, Hong Kong, Bangalore, Mumbai, New Delhi, Jakarta, Tokyo, Kuala Lumpur, Singapore, Seoul, Taipei and Bangkok.
“It is anticipated that prime office rents will increase marginally during the remainder of 2015 as vacancy rates begin to decline, placing upwards pressure on rents,” he said.