Logo of Phnom Penh Post newspaper Phnom Penh Post - Apartment rents in capital tick up

Apartment rents in capital tick up

Content image - Phnom Penh Post
A group of skyscrapers tower above the horizon in the capital’s Chakmarmon district on May 26. Heng Chivoan

Apartment rents in capital tick up

Rents and demand for serviced apartments in Phnom Penh are back on the up, buoyed by the reopening of the country in early November and general improvement in the Covid-19 situation, according to a prominent real estate company.

CBRE Cambodia, the local affiliate of US commercial real estate services and investment firm CBRE Group Inc, said in its latest report that the average monthly rent for top-quality “Grade A” apartments was $10-30 per square metre during the second quarter of this year, up by 2.4 per cent year-on-year on the whole.

In the “Grade B” category, apartments went for $7-22 per month per square metre at the time, up by 1.5 per cent year-on-year overall. CBRE Cambodia attributed the wide range in prices to the variation in room types, in the report published on July 7.

The study said the capital’s rental apartment supply of both grades stood at about 4,000 units as of June 30, after three developments were completed and put on the market in the first half of this year. These were Grade A projects Citadines Flatiron Phnom Penh in Tuol Kork district and Jasmine Residence in Boeung Keng Kang district as well as Grade B mixed-use development TK Central in Tuol Kork.

Responding to a query from The Post during the report’s launch ceremony, Kim Kinkesa, senior manager of research and consulting at CBRE Cambodia, indicated that these recent market uptrends have been propelled by the increased number of foreigners entering the Kingdom due to its reopening and easing of Covid-19 restrictions as cases plummeted.

“The apartment market is highly dependent on foreigners renting accommodation, so when the number of foreigners travelling to Cambodia increases, the market will recover accordingly, no ifs ands or buts about it,” she said.

Kinkesa pointed out that a dearth of new developments in Cambodia had resulted in considerably greater demand-to-supply ratios for serviced apartments and the accompanying uptick in rents. However, she suggested that both were tempered by, among other things, a lacklustre recovery in cross-border travel as well as global economic shocks, such as those tied to the Russia-Ukraine conflict.

For the rest of this year, Kinkesa predicts that “demand and rental prices for apartments in Phnom Penh will continue to rise, although they will most likely not exhibit sudden jumps”.

According to the Ministry of Tourism, the number of foreign visitors to the Kingdom has been on a progressive upward trajectory since November’s reopening, registering 343,464 in the first five months of 2022, a 274.98 per cent year-on-year increase from 91,596.

MOST VIEWED

  • Research key to Kanitha’s rep for expertise

    Sok Kanitha is used to weighing in on controversial issues using a confident approach that signals expertise and authority, and a recent video she made was no exception. Her “Episode 342: The History of NATO” video went live on January 16, 2023 and immediately shot to 30,000 likes and 3,500

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Knockout! Kun Khmer replaces ‘Muay’ for Phnom Penh Games

    Cambodia has decided to officially remove the word Muay from the programme of the 32nd Southeast Asian (SEA) Games 2023 in May. “Kun Khmer” will instead be used to represent the Southeast Asian sport of kickboxing, in accordance with the wishes of the Cambodian people. Vath

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,

  • Capital-Poipet express rail project making headway

    The preliminary results of a feasibility study to upgrade the Phnom Penh-Poipet railway into Cambodia’s first express railway indicate that the project would cost more than $4 billion and would take around four years to complete. The study was carried out by China Road and