Office prices stable, but could rise as rentals expire

Office prices stable, but could rise as rentals expire

As the time for tenants to change office space comes closer as leases expire, new office spaces are opening around Phnom Penh with some seeing positive results while others struggle.

Four new office space buildings entered the Phnom Penh market in the first half of 2015 as the demand remained high, local real estate experts say.

While the office spaces near Monivong Blvd and Norodom Blvd seemed to show some potential, office space that opened away from main thoroughfares seemed to be inactive, said Van Chanthorn, director of Town City Real Estate.
The four new office space buildings that opened in the capital were Heng Asia building, along Mao Se Tung Blvd, Koh Sontepheap building on street 271, GT Tower building in front of Bak Tuk high school and an office space above the Phnom Penh International University.

“Grade B office space still remained the most popular since companies are interested in the area’s affordable prices,” said Chanthorn.

Content image - Phnom Penh Post
Office space in Canadia Tower, Phnom Penh’s second largest skyscraper, averages at $29.10 per square metre. Hong Menea

Phnom Penh’s Grade A office space costs about $20 to $35 per square meter, whereas Grade B office space costs about $12 to $18, and Grade C costs about $7 to $12, according to a study from the Town City Real Estate.

Sung Bunna, director of Bunna Realty Group, said both office space supply and demand remained stable because the buildings’ occupany rate ranges from 90 to 95 per cent. Since the supply and demand are balanced, there has not been an increase in rental prices, he explained.

“The [existing] office space demand still shows potential, and there is not a big number of new companies listed [to establish in Cambodia] this year,” he said, explaining that prices could jump soon as availability remains limited.

The demand for office space at the beginning of the year was low due to the annual cycle of rent agreements. However, tenants usually change their offices around September, thus many of the new office spaces had stable, competative prices when they entered the market, said Chrek Soknim, chief executive of Century21 Mekong.


  • Ethnic group ‘disappointed’ to be denied French visas to attend court

    Eleven people at the centre of a case involving seven indigenous Bunong villages in Mondulkiri province pursuing legal action in France have expressed disappointment after the French embassy in Phnom Penh denied their visa applications to attend court. A press release said the 11 included a

  • Cambodia nabs 12th place in best retirement destinations

    Cambodia is an expatriate hotspot for those dreaming of living a more luxurious lifestyle at an affordable cost, according to International Living’s Annual Global Retirement Index 2019. For the fourth year in a row, Cambodia took the top spot in the Cost of Living category.

  • EU starts EBA withdrawal

    The EU on Monday announced that it has begun the 18-month process of withdrawing the Kingdom’s access to its preferential Everything But Arms (EBA) agreement over “a deterioration of democracy [and] respect for human rights”. However, the Garment Manufacturers Association of Cambodia (GMAC) said

  • PM: War result of foreign meddling

    Prime Minister Hun Sen said on Sunday that Cambodia’s recent history of conflict was caused by foreign interference. “The wars that happened were caused by provocation, incitement, support, smearing and interference from foreign powers, and the group of ignorant people who pushed Cambodia to