Demand for capital’s warehouses on the upswing as investors enter Cambodian market

A warehouse in the outskirts of Phnom Penh
A warehouse in the outskirts of Phnom Penh. Photo Supplied

Demand for capital’s warehouses on the upswing as investors enter Cambodian market

Demand for warehouse space in Phnom Penh increased in 2014 and looks set to continue its upward trend, industry insiders say.

Dith Channa, general manager of VMC Real Estate, said warehouse prices increased 15 per cent in early 2015 compared to the same period last year due to increasing competition for space.

Warehouses in the capital are divided into two categories, with small warehouses measuring less than 1,000 square metres and big ones including anything over the 1,000 square metre level.

Small warehouses tend to concentrate within the city proper, while larger ones are located further out along national roads two, three, and four, Channa said.

“Local investors mostly use warehouses which range from 200 to 500 square meters while warehouses above 1,000 square metres are usually requested by international companies,” he said.

“Leasing contracts for warehouses generally range from two to five years.”

Small warehouses are priced from $3 to $5 per square metre a month, while big warehouses start from $1.50 to $2.

Prices are flexible and vary according to location, quality, and space, Channa said.

Van Chanthorn, managing director of Town Real Estate Company, said warehouse demand climbed in 2014 and that the positive trend was continuing into 2015.

“As ASEAN economic integration comes, warehouse demand will continue to trend upwards as more investors enter the Cambodian market,” he said.

However, Khat Sovann, general manager at Cam Top Property Group, said demand seemed to remain stable in early 2015, although there had been a ten per cent increase in customers seeking space in 2014 compared to the year before.

“The average size of requested warehouse space from my company in 2014 ranged from 2,000 to 5,000 square metres, and those were along national roads two, three and four.”

Sovann added that Cambodian warehouse prices were lower than the region - coming at a cost.

“If compared with other countries’ warehouse prices, [Cambodian] prices are lower as the quality and preparation is limited,” he added.

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