Friday, April 11, 2014

Latest Property Reports Offer Evidence of Strong Growth

11 April 2014

In its latest Market View report, CBRE Cambodia Research concludes that Phnom Penh has well and truly put the fallout from the Global Financial Crisis behind it, and the city is now responding to demand for Grade-A serviced apartments.

507 serviced apartment units came on line in Phnom Penh last year, and a further 170 will arrive this year, with 20 condominium projects either completed or under construction.

The declining trend in condominium developments in the aftermath of the 2007-8 economic downturn has now reversed and confidence appears to have been restored to the market due the successful implementation of off-plan developments such as De Castle Royal, which is slated to open later this year and is already 90% sold out.

Significant interest from international purchasers has helped to drive sales, with the ratio of domestic to foreign buyers as high as 65:35 in some buildings.

Notable developments in Phnom Penh’s retail sector are the imminent arrival of Aeon Mall, which is set to open in the middle of this year, and Parkson City Centre, which will open early next year.

The next 12 months will see a wave of new brands entering the Phnom Penh retail market. Both consumers and retailers alike will benefit from a diverse mix of tenants in new, high-quality shopping centres.

There has been an increasing demand for luxury products, or at least mid-tier brands, in Phnom Penh and change is being driven by a combination of positive GDP growth, an aspirational middle class and a young demographic, with an increasing disposable income.

With continued year on-year GDP growth, considerable levels of foreign investment and a domestic population whose disposable income is to set increase significantly over the coming years, the overall outlook for the Phnom Penh real estate market looks encouraging.

Source:
http://www.phnompenhpost.com/real-estate/latest-property-reports-offer-evidence-strong-growth

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