Phnom Penh office space increases in first quarter

Rental fees for office space increased in Phnom Penh but are still  affordable compared to prices in metropolitan areas in neighbouring countries
Rental fees for office space increased in Phnom Penh but are still affordable compared to prices in metropolitan areas in neighbouring countries. Heng Chivoan

Phnom Penh office space increases in first quarter

Rental prices for prime Phnom Penh office space saw an increase of 3.2 per cent in the fourth quarter of 2014, according to the Knight Frank Asia Pacific Prime Office Rental Index.

Knight Frank country manager Ross Wheble said that, excluding land, existing property prices have not recorded significant increases during the past two years; it is only the newly launched projects that are able to achieve higher selling prices because of their superior design, quality and amenities.

“For offices, we focus on the area around Canadia Tower, Phnom Penh’s developing CBD,” he added.

The report said that monthly prime office rent net prices in the capital was priced at $22 per square meter and $28.9 per square meter (after services, taxes and charges) in the fourth quarter.

Property prices in Cambodia are still relatively low compared with more developed countries such as Thailand, Malaysia and Singapore, Wheble said.

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.

“Among the cities in our index, Jakarta registered the strongest quarterly rental growth of 6.2 per cent, as vacancy dropped to the lowest rate of 4.2 per cent in our records,” the report said. “It is followed by Phnom Penh, where rents increased by 3.2 per cent, on the back of steady demand from foreign companies seeking to capitalise on Cambodia’s strong economic growth.”

“We anticipate that the office market will remain relatively healthy over the short and medium term due to the stable supply of new office space. Canadia Tower [was] completed in 2009, Phnom Penh Tower in 2011, Vattanak Capital Tower in 2014 and Hongkong Land’s Exchange Square is not due for completion until 2016, thus demand has been able to meet new supply due to the limited amount of prime office development,” he said.

MOST VIEWED

  • Government denies claims former Thai PM Yingluck issued Cambodian passport

    Government officials on Thursday denied claims that a Cambodian passport was issued to former Thai Prime Minister Yingluck Shinawatra, who reportedly used it to register a company in Hong Kong. The Hong Kong-based English language South China Morning Post (SCMP) on Wednesday reported Hong Kong

  • US’ Cambodian ambassador appointment blocked

    The US Senate returned the nomination of Patrick Murphy as Ambassador to Cambodia back to US President Donald Trump on Thursday, as the American government shutdown entered its third week. The US Senate website announcement said it returned Murphy’s nomination as ambassador as his

  • ‘Indian’ tuk-tuk drivers take flak

    The drivers of “Indian” metered tuk-tuks are facing widespread criticism for failing to respect traffic laws and causing traffic jams and accidents. Nay Sitha, a resident of Phnom Penh’s Meanchey district, spoke to The Post about the difficulties he faces, especially when travelling to

  • Diplomatic passports issued to foreigners to be annulled

    The Ministry of Foreign Affairs and International Cooperation will move to annul diplomatic passports issued to those not born in Cambodia. Analysts say the move may be in relation to reports that former Thai prime minister Yingluck Shinawatra used a Cambodian passport to register as