ECONOMIC SNAPSHOT ECONOMIC SNAPSHOT ’s economy held firm during H1 2019 despite the geopolitical climate continuing to weigh down on global market sentiment and the strengthening of the USD ROSS WHEBLE Country Head

According to the National Bank of Cambodia’s withdrawal from the Everything Cambodia (NBC), the Kingdom is on but Arms (EBA) agreement has been a hot “Cambodia’s withdrawal track to achieve GDP growth of 7.1% topic of discussion but the latest data from from the Everything but Arms during 2019. This is in line with the Asian the Garment Manufacturers Association in (EBA) agreement has been Development Bank, which forecasts Cambodia indicates that 34 new garment a hot topic of discussion Cambodia to record the highest GDP factories opened during the first half of growth within ASEAN (figure 1) at 7.0% 2019 whilst 10 ceased operation, equating but the latest data from the during 2019. to a net increase of 24 factories. Garment Manufacturers Association in Cambodia The NBC’s bi-annual report states that In addition to the above economic indicates that 34 new GDP growth will be supported by the indicators, the much anticipated strong performance of the construction, population census was released during garment factories opened real estate and tourism sectors, whilst H1 2019, which gave mixed signals. during the first half of 2019 the contribution from agriculture will whilst 10 ceased operation, Surprisingly, the population growth rate continue to decline. equating to a net increase of of Cambodia declined between 2008 and Data compiled by the Council for the 2019 to 1.2% per annum compared with a 24 factories.” Development of Cambodia indicates that growth rate of 1.6% per annum recorded US$5.2 billion worth of investment flowed between 1998 and 2008 (figure 2), and the into the Kingdom during the first half of overall population was somewhat below 2019, a 46% increase compared with the previous forecasts of 16 million. same period during 2018. However, the growth of Phnom Penh’s As Cambodia continues to develop at a Whilst investment in construction and population was significantly above the mesmerising rate, now, more than ever, real estate continues to dominate the national average between 2008 and 2019 at there is a need for accurate and in local media headlines, the services 4.4% per annum, compared with a growth depth market analysis for investors and and industrial sectors remain the key rate of 2.9% per annum between 1998 and developers to make informed decisions contributors to GDP, at 39% and 36% 2008. This can be largely attributed to an based on solid market fundamentals. respectively. increasing urbanisation rate.

FIGURE 1 FIGURE 2 2019 GDP GROWTH FORECASTS POPULATION GROWTH (POPULATION CENSUS 2019)

% 8 Population (000’s) CAGR CAGR Locality (1998 – (2008 – 7 1998 2008 2019 2008) 2019) 6 5 Cambodia 11,438 13,396 15,288 1.6% 1.2% 4 3 Siem Reap 696 896 1,007 2.6% 1.1% 2 1 Phnom Penh 1,000 1,328 2,129 2.9% 4.4% 0

Laos Sihanoukville 156 221 303 3.5% 2.9% Brunei Indonesia Malaysia Cambodia Philippines

Source: National Institute of Statistics, Ministry of Planning / Source: Asian Development Bank Knight Frank Research

2 KEY FINDINGS PHNOM PENH OFFICE SECTOR The completion of Diamond The overall vacancy rate increased to 17% as at the Twin Tower, Elysee Tower and Prince Holding contributed end of H1 2019, a five percentage point Y-o-Y increase approximately 46,444 sq m of due to additional supply of office buildings coming on net lettable area to the Phnom stream. Penh office stock, taking the total supply to 463,701 sq m. Supply and Demand The total supply of strata-title office stock Diamond Twin Tower, a mixed currently stands at 34,577 sq m and, by development comprising H1 2019 saw the addition the end of 2019, the stock is forecasted to condominiums, office and of three office buildings in triple to 104,749 sq m of office NLA. retail components, was the Phnom Penh, all within the Elysee Tower and Prince Holding are both third stratified office building Grade B classification. Grade B centrally owned rental office to be added Phnom Penh’s buildings, contributing 12,609 sq m and office stock. At the end of first half of 2019, Phnom 18,600 sq m, respectively to the total Penh office supply (rental and strata- office stock. Of the overall supply, 45% title) increased by 46,444 sq m to of existing office space was recorded as The new incoming supply 463,701 sq m, equating to an 11% Grade C space, followed closely by Grade placed downward pressure increase since the end of 2018 and a B at 43%, whilst Grade A space currently on the overall average Y-o-Y increase of 23%. only represents 12% of the office market. occupancy, dropping 5.2 percentage points to 83.3% During H1 2019, three Grade B office Post 2021, the Phnom Penh office supply during H1 2019. buildings completed, contributing a total will comprise approximately 1,059,170 of 46,444 sq m namely; Diamond Twin sq m of net lettable area, a 130% Tower, Elysee Tower and Prince Holding. increase over the existing supply. Yield-driven investors may Diamond Twin tower was the latest be attracted to stratified The office stock is forecasted to increase addition to the strata-title office basket office investments as by an additional 595,469 sq m by post contributing 15,235 sq m to the existing 2021, if all monitored projects complete the condominium market strata-title office stock, which also as scheduled. Four new projects continues to cool down. comprises TK Royal One and East launched and/or commenced ground Commercial Centre. breaking during H1 2019; Flatiron By Meridian, Golden Tower 322, Prince Haon Yu Centre and Prince Financial Tower. FIGURE 3 EXISTING SUPPLY BY DISTRICT Flatiron By Meridian and Golden Tower 322 will provide an aggregate net lettable area of 36,980 sq m. No information of net lettable area could be obtained for Prince Haon Yu Centre and Prince Financial Tower, therefore our analysis excludes these buildings.

As Phnom Penh’s Central Business District, Daun Penh remains the most concentrated district for office buildings. Daun Penh 32% Toul Kork 4% 7 Makara 17% Chroy Changva 1% Central Phnom Penh remains the main Chamkarmon 25% Sen Sok 4% concentration for office developments Bueng Keng Kong 15% Meanchey 2% with 93% market share whilst suburban DIAMOND TWIN TOWER, PHNOM PENH areas such as Chroy Chongva, Sen Sok Source: Knight Frank Research and Meanchey, which are upcoming

3 CAMBODIA REAL ESTATE HIGHLIGHTS PHNOM PENH

satellite cities, currently comprise only to 82.0% as a result of the substantial anticipate rental rates in the near future 7% of the existing stock. Existing office increase in Grade B office supply. to face downward pressure as landlords supply is concentrated in Daun Penh compete to fill up their buildings. There were no new Grade A offices (32%), followed by Chamkarmon (25%), completed during H1 2019 thus supply With the high-end condominium 7 Makara (17%), Boeung Keng Kang remained the same; with a positive segment reaching saturation, yield- (15%) and Toul Kork with (4%). net absorption, the occupancy rate driven investors are switching their focus Boeung Keng Kang was formally under improved by 3.3 percentage points to stratified offices which generally the administration of Chamkarmon. Earlier compare with H1 2018 to 76.7%. provide a more stable income stream, this year, a sub-decree was issued by the with business tenants tending to sign government to establish Boeung Keng Strata-title offices recorded longer lease terms. On top of that, Kang as a standalone district. a relatively high vacancy office unit owners also have an option rate during H1 2019 at 68% to tap into the increasingly popular co- By the end of 2019, an working space market. All these factors additional 115,421 sq m To-date, only 32% of strata-title office are prompting developers to build and NLA spread across eight space is occupied. The low occupancy provide office developments. rate is largely due the recent completion office buildings expected SME companies and smaller startups of Diamond Twin Tower. Furthermore, to complete. looking to rent office may also be MNC’s generally still prefer to take attracted to stratified offices for its 45,249 sq m of the stock will be up space in centrally retained office capital growth potential. centrally retained whilst the remaining buildings with a single owner and a more 70,172 sq m will be sold on strata title to corporate style entrance lobby. The increasing number of office individual owners. completions will create a more competitive office landscape with Of the total incoming office stock, Grade Prices and Rental A space will contribute 35,913 sq m landlords of centrally retained offices As a result of continuous office supply NLA whilst Grade B office space will competing with individual owners of swelling, specifically Grade B and C, contribute 72,508 sq m of NLA. strata office units. It is anticipated that office rentals remained unchanged across owners of individual office units will likely Between 2019 and post 2021, a total of all grades. Grade A, B and C offices be more flexible, especially in rental 480,047 sq m NLA of office stock will be command rentals ranging between US$28 rates, to secure a tenant for their unit. added onto the office supply, assuming to US$40 per sq m per month, US$18 to all our monitored projects are completed US$29 and US$9 to US$18, respectively For future strata office projects, as scheduled. (excluding service charges and tax). developers are well advised to appoint reputable property management The majority (75%) of incoming office The newly completed Grade B office companies which will enhance supply will be Grade A offices, followed buildings; Elysee Tower and Diamond marketability and aide owners in by Grade B (24%) and Grade C (1%). Twin Tower, contributing approximately securing tenants. 27,844 sq m NLA, had asking rentals With the sizeable amount of incoming ranging between $15 to $26 per sq m. office supply over the next few years, we Prince Holding, however, is not available anticipate a compression on occupancy in the market for sale or rent as it is fully FIGURE 4 rates across all grades as market demand PHNOM PENH CUMULATIVE owner-occupied. struggles to keep pace with supply. OFFICE SUPPLY (2008 – POST 2021F) Within Diamond Twin Tower, the newly completed stratified office units are available Occupancy rates for office 1,200,000 buildings continued on a for sale with prices ranging from US$2,800 downward trend declining to as high as US$3,600 per sq m of the NLA. 1,000,000 to 83.3% from 87.1% during H2 2018 and 88.5% during 800,000 H1 2018. Office Sector 600,000 Outlook As a result of newly completed office 400,000 buildings coming online during H2 2018 Office rentals are expected to and H1 2019 (mostly made up of Grade remain flat due to the swelling 200,000 B office), the overall occupancy rate continued on a downward trend. supply of office across all 0 grades in Phnom Penh. 2008 20092010201120122013201420152016201720182019f2020f2021f Grade C office recorded the highest Post 2021f occupancy rate during H1 2019 at 86.2%, Despite the growing number of foreign GRADE A GRADE B a decline of 1.2 percentage points over companies setting up in Cambodia, the GRADE C TOTAL H2 2018. Grade B office, however, net absorption rate slowed during H1 plummeted by 14 percentage points 2019. With a sizeable supply pipeline, we Source: Knight Frank Research

4 KEY FINDINGS PHNOM PENH RETAIL SECTOR During H1 2019, three new Phnom Penh’s retail supply continued to increase as retail malls / outlets officially opened their doors – The local developers seek to compete with international Olympia Mall, Midtown Mall retail operators. With an abundance of new retail and WB Arena bringing the malls, new international brands are being drawn to the total existing retail supply to 338,505 sq m of NLA. Cambodian market

By 2021, the retail sector is expected to deliver an The retail supply increased by 71,000 sq additional 505,521 sq m of NLA Supply and Demand m of NLA during H1 2019, equating to the retail stock bringing the H1 2019 saw the completion to an increase of approximately 27% total supply to 844,026 sq m, a of the much anticipated The compared with H2 2018. By the end of 216% increase. 2019, we anticipate a further 109,947 sq Olympia Mall, OCIC’s key m of NLA to come online spread across development in the heart of four projects. The overall occupancy rate Phnom Penh. continued to be hampered, By 2021, the cumulative retail supply sliding down to 80.8%, an During the first half of 2019, three will reach an estimated 844,026 sq m additional 8.1 percentage point malls were added to the total supply of of NLA, assuming all monitored and reduction since the end of 2018. retail space in the city. The largest and launched projects are constructed most anticipated was the prime grade and completed as planned. Taking into shopping mall known as The Olympia account the current existing supply, this Whilst the occupancy rate Mall located in 7 Makara District, adding equates to an additional 505,521 sq m declined further during H1 60,000 sq m of NLA. Within the mall, onto the market, an increase of 149%. 2019, average retail rents more than 40% of the tenant mix is As the city is under-going major remained flat. skewed toward the Food & Beverage transformation, local developers are segment and 35% toward Entertainment. actively seeking to build and provide During the same period, Midtown Mall A number of prime retail commercial retail developments keeping and WB Arena contributed 5,000 sq m podiums with trending inline with current trends. Chip Mong and 6,000 sq m of NLA respectively to concepts are taking shape in Group has six on-going retail projects the retail stock. the city; namely The Peak, Gold taking shape whilst another two are Tower 42, World Trade Center being developed by Peng Huoth. Phnom Penh and Chief Tower.

FIGURE 5 PHNOM PENH SUPPLY AND DEMAND OF RETAIL SPACE

Sq. m. % 900,000 35 800,000 30 700,000 600,000 25 500,000 20 400,000 15 300,000 10 200,000 100,000 5 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f Post 2020f SUPPLY (LHS) VACANCY RATE (RHS)

THE OLYMPIA MALL, PHNOM PENH Source: Knight Frank Research

5 CAMBODIA REAL ESTATE HIGHLIGHTS PHNOM PENH

Having achieved healthy take-up rates supply. On top of that, Samai Square and at both AEON 1 and AEON 2, Japanese the Commune Mall will add 1,650 sq m Retail Sector developer, AEON, will construct a and 1,552 sq m of NLA, respectively, to Outlook third shopping mall located in one of the overall retail supply. Cambodia’s largest satellite cities, ING The retail sector in Cambodia is under- Since the second half of 2018, the overall City, south of Phnom Penh city centre. going a dynamic retail landscape occupancy rate for shopping malls has transformation. With an expanding Expected to complete by 2023, the been declining and continued to decline, population, especially the younger official launch of this project has yet by 8.1 percentage points to 80.8% as at generation, the retail sector in Phnom to take place as of H1 2019. Therefore, the end of H1 2019. This drop is largely Penh is prone to constant change to additional details such as the rental rate, attributed to the incoming of WB Arena keep up with latest trends. net lettable area and gross floor area are in Mean Chey and The Olympia Mall still unavailable. in 7 Makara. Due to their very recent Cambodia’s strong and stable completion, it will take some time before economic growth has led to an Currently, 64% of the total existing retailers fit out their units and physically increase in disposable income. Its retail supply is located in city centre occupy the vacant space. younger generation coupled with locations whilst the remaining 36% is the increasing number of expatriates in suburban areas. Expectedly, the overall occupancy rate are the main drivers of shopping of prime retail malls experienced a District wise, Sen Sok comprises the mall demand, specifically the food & Y-o-Y decline of 12 percentage points largest retail supply taking up 27% beverage segment. As one of the strong to 84% in comparison with H1 2018 of the total supply, largely attributed performers in the retail sector, a number whilst secondary malls’ occupancy to Aeon Mall Sen Sok, followed by of new international brands (in food & is currently recorded at 76%, a 3 7 Makara (25%), Chamkarmon (22%), beverage) are entering the country to percentage point Y-o-Y drop over the Daun Penh (13%), Toul Kork (2%), capture the market. same period. Boueng Keng Kang (3%), Chbar Ampov With the growing number of new (3%) and Mean Chey (5%). The Food & Beverage segment in the shopping malls, older shopping malls retail industry has been performing The lack of retail supply in Toul Kork will be adversely affected by a reduction well in Phnom Penh. During H1 2019, District has generated interest from in footfall. Such shopping malls will this segment welcomed a number developers. During H1 2019, a number be required to constantly renovate, of new international brands namely of small-scale retail projects (community refurbish, reconfigure and modernise JuiceTell, Who’s Tea (Taiwan) and Wrap malls) were officially announced in Toul their concept to cater to changing & Roll within the new Olympia Mall, Kork. DNC Mall, developed by Discover expectations. Sovanna Mall publicly and Collin’s Sky Dining & Gastro Bar New City, a secondary grade shopping announced its temporary closure during (Singapore) within The Bridge. mall will add 6,000 sq m of NLA to the Q2 2019 to undergo such process. Completion of the on-going and upcoming retail developments is likely FIGURE 6 Prices and Rental to lead to a compression of occupancy DISTRIBUTION OF EXISTING Despite new shopping malls opening rates and a potential correction in RETAIL SPACE BY DISTRICT and with the snowballing supply of rental rates. Over the next two years, retail malls in Phnom Penh, rental rates Phnom Penh will welcome many prime/ remained flat as a result of the growing major retail podiums to its retail market. number of retailers entering the market. The Peak by Capital Land’s lifestyle retail podium is set to open in 2020 As at H1 2019, average asking rents for contributing 24,154 sq m of NLA and retail units in prime shopping centres also the long anticipated Gold Tower ranged between US$31.00 to US$40.00 42, which will comprise its own retail per sq m per month of NLA. podium, is expected to complete by Secondary grade shopping malls are 2020 as well. currently commanding an average The transformation of Phnom Penh’s rental rate ranging between $21.00 to retail sector and continuous additions of US$31.50 per sq m per month of NLA shopping malls is a positive sign of the (excluding service charges and tax). It is local population’s acceptance toward Daun Penh 13% Toul Kork 2% worth noting that the lower band of the such concepts, which will entice more 7 Makara 25% Sen Sok 27% range has moved upwards by US$3.00 Chamkarmon 22% Chbar Ampov 3% international retailers/brands to set up Bueng Keng Kong 3% Mean chey 5% per sq m per month since H1 2018 which operations in Cambodia. was recored at $18.00 per sq m per Source: Knight Frank Research month of NLA.

6 KEY FINDINGS PHNOM PENH HOTEL SECTOR The existing supply of hotels Arrivals at Phnom Penh International Airport were with 50 rooms and above was recorded at 11,120 rooms recorded at 5,423,000 during 2018, almost 1 million across 83 hotels as at H1 2019 more than Siem Reap – the traditional tourism hub of Cambodia The most notable completion during H1 2019 was the opening of the Courtyard Marriott There were three new completions within Phnom Penh – Marriott’s first Supply the Midscale & Economy category, which hotel in Phnom Penh As at the end of H1 2019, included V International (64 keys), Pasteur the existing supply of 51 (54 keys) and V Boutique Hotel (120 Chinese tourist arrivals have Phnom Penh hotel rooms keys), taking the existing stock to 5,280 been driving demand for keys (representing 48% of the total the capital’s Luxury & Upper was recorded at 11,120 existing stock). keys, a 7.5% Y-o-Y Upscale hotels This was followed by Luxury & Upper increase Upscale (30%) and Upscale & Upper The average overall occupancy Between H1 2018 and H1 2019, 773 Midscale (22%). rate during H1 2019 recorded a rooms across six hotels were added Being located within the historical city marginal increase Y-o-Y to 67% to the Phnom Penh supply, taking the centre, encompassing both the Central existing stock to 11,120 keys reflecting Business District and Phnom Penh’s a 7.5% Y-o-Y increase. main tourist attractions, the majority The most high profile opening was (37%) of the existing supply was located the Courtyard Phnom Penh, adding within Daun Penh District. 189 keys to the capital’s lodging This was followed closely by Chamkarmon accommodation within the Upscale & (27%), Boeung Keng Kang (10%), Chroy Upper Midscale category. Additionally, Chongva (10%), 7 Makara (7%), Toul Kork the well-located Emion hotel opened (4%), Sen Sok (3%), Porsenchey (1%) and for business, operated by Starts, a Meanchey (1%). Japanese developer / operator, adding 240 rooms within the Upscale & Upper As the visitor profile to Cambodia shifts Midscale segment. up the value chain, the future supply of hotels in Phnom Penh is skewed toward

FIGURE 7 PHNOM PENH CUMULATIVE HOTEL SUPPLY (2011 - 2021F)

No Room , , , , , , , f f f

N SPP MTI SPP

COURTYARD, PHNOM PENH Source: Knight Frank Research

7 CAMBODIA REAL ESTATE HIGHLIGHTS PHNOM PENH

Luxury & Upper Upscale (40%), followed of business arrivals to the capital and FIGURE 8 by Upscale & Upper Midscale (38%) this trend is expected to continue as an INTERNATIONAL TOURIST hotels. Midscale & Economy hotels ARRIVALS (2008 – 2018) increasing number of overseas investors constitute 22% of incoming supply. and companies look to set up shop in A total of 2,043 key are scheduled to Cambodia, in addition to companies already 7,000,000 5,000 complete between H2 2019 and 2021. in Cambodia looking for new venues for

6,000,000 management training and retreats. Probably the most publicised hotel in 4,000 the development pipeline is the recently 5,000,000 Secondly, as growth in disposable announced Naga 3. The new addition will incomes keeps pace with GDP growth, 3,000 be located on the former White Building 4,000,000 there is a new emerging market which site, which was initially earmarked for an 3,000,000 is the domestic tourism. Historically, affordable housing development but the 2,000 virtually 100% of hotel guests within site was acquired by Naga Corp. Naga 3 2,000,000 the Luxury & Upper Upscale segment will comprise five hotel towers providing 1,000 have been foreign tourists. This dynamic 1,000,000 4,720 rooms – almost half of Phnom is slowly shifting across all market

Penh’s existing supply. 0 0 segments and developers / operators

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 should look at introducing internationally branded Economy hotels to cater to this INTERNATIONAL TOURIST ARRIVALS (LHS) key growth market. Occupancy Rates TOURIST RECEIPTS (US$ MIL) (RHS) Whilst there are several budget hotels and Room Rates Source: Ministry of Tourism in the development pipeline, we believe Average room rates and the gap still exists within the Economy occupancy rates increased Hotel Sector Outlook & Midscale and Upscale & Upper marginally Y-o-Y, with the Midscale segments for internationally Luxury & Upper Upscale With a slew of Luxury branded hotels to cater to both the hotels opening their doors increasing number of business arrivals segment benefitting from as well as domestic tourism. increased demand from since H1 2018, Cambodia’s Chinese tourist arrivals tourism sector is finally What Phnom Penh needs now is an coming of age international standard conference and The number of tourist arrivals to Phnom exhibition centre to tap into the MICE Penh International Airport increased The tourism sector in Cambodia market. significantly during 2018, by 28% continues to go from strength to strength With the new international airport to 5.4 million compared with a 6% and the outlook for the Phnom Penh mooted to be constructed to the south increase at Siem Reap International hotel sector is very promising. of Phnom Penh, in , Airport to 4.5 million. This trend is Demand is twofold; with the economy there is an opportunity to develop such expected to continue as Phnom Penh growing at break neck speed, there has a facility that is well planned, accessible cements itself as the main point of entry been a noticeable increase in the number and world class. into the Kingdom.

This sizeable increase can, in part, be attributed to the growth in Chinese FIGURE 9 tourist arrivals to Cambodia. In addition ANNUAL ADR, REVPAR & OCCUPANCY RATE (LUXURY & UPPER UPSCALE ) to the increase in arrivals, growth in tourism receipts was the largest since US$ % the global financial crisis, increasing 160 56 by 21% to 4.375 billion which has 140 44 underpinned demand for more luxurious 120 52 accommodation. 100 50 The growth in tourist arrivals and 80 48 receipts led to a marginal uptick in both 60 46 occupancy and room rates across all 40 44 classifications of hotel. 20 42 This trend is set to continue as the 0 40 number of tourist arrivals continues to 2011 2012 2013 2014 2015 2016 2017 2018 grow whilst the future supply remains manageable. ADR (LHS) REVPAR (LHS) OCCUPANCY (RHS)

Source: Knight Frank Research

8 PHNOM PENH SERVICED KEY FINDINGS APARTMENT SECTOR

The first half of 2019 saw an Despite the addition of new condominiums and additional 190 units of serviced serviced apartments entering the market, the serviced apartments added to the apartment sector fared well with an overall occupancy existing stock. rate of 74% during H1 2019. The aggregate supply of serviced apartment was recorded at 5,497 units Supply Khiev, Precious Serviced Apartment and as at H1 2019. Central Town are all Mid-tier apartments Five new serviced contributing a total of 109 units to Daun Penh and Toul Kork districts. The newly formed Boeung apartments completed Keng Kang District has the during H1 2019, namely, Despite the new additions to most serviced apartments Monorom Apartment, Alpha Chamkarmon and Daun Penh District, representing 36% of the Residence, Champs Elysees the newly formed Boeung Keng Kang total stock, followed by (BKK) District now tops the list with the Apartment Khiev, Precious most serviced apartments representing Chamkarmon (20%) and Daun Serviced Apartment and 35% of the total units, followed by Penh (13%). Central Town. Chamkarmon (20%), Daun Penh (13%) and Toul Kork (12%). BKK District, With five newly completed serviced Despite the significant increase comprising 7 communes, became a apartments entering the market, the in supply of condominiums separate administrative district from total cumulative supply of serviced and serviced apartments, Chamkarmon District vide a sub-decree apartments was recorded at 5,483 units, occupancy and rental rates issued by the government in early 2019. a Y-o-Y increase of approximately 9% remained resilient due to from the same period in 2018. The remaining serviced apartments growing demand stemming were scattered in 7 Makara (9%), Chroy The five new serviced apartments from Chinese expatriates. Chongva (7%), Sen Sok (3%) and Mean contributed a total 176 units to the Chey (1%). existing stock. Alpha Residences, the Landlords/operators are still only new High-end serviced apartment By segment, Mid-tier serviced apartments maintaining flexibility in terms of and Monorom Apartment, which is still dominate the sector with 57% market rental negotiation and duration categorised as Affordable, contributed share. Affordable and High-end stock of stay to remain competitive. a total 67 units to Chamkarmon District, forms 22% and 21%, respectively. Subject whilst Champs Elysees Apartment to location, serviced apartments remain attractive to incoming expatriates and

FIGURE 10 CUMULATIVE SUPPLY OF SERVICED APARTMENTS (2009 - 2020F)

9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f

EXISTING SUPPLY NEW/ADDED SUPPLY

ALPHA RESIDENCE, PHNOM PENH Source: Knight Frank Research

9 CAMBODIA REAL ESTATE HIGHLIGHTS PHNOM PENH

foreigners thereby encouraging the development of additional local family-run Occupancy Serviced Apartment serviced apartments, especially in the Mid-tier segment. The overall occupancy Sector Outlook rate increased to 74%, Despite the increase in An additional 1,393 units have been with the best performing identified within the development pipeline inventory of serviced but are not due to complete until post sector being the Affordable apartments and 2020. This reflects a 25% increase over segment achieving an condominiums, the serviced the existing stock assuming all monitored average occupancy of 82%. apartment sector fared well projects are completed as scheduled. Recorded at 71% during H2 2018, the overall during H1 2019 and the occupancy rate recovered marginally during outlook remains positive. H1 2019 increasing to 74%. Rental The residential market in Phnom Penh is Location wise, 7 Makara commands becoming increasingly competitive with Rental rates for the past the highest overall occupancy rate at swelling supply and new launches of year have generally 84% across all segments, followed by condominiums and serviced apartments remained flat despite the Daun Penh (82%) and the newly formed to the market. district, Boeung Keng Kang (80%). increasing competition Similar to Sihanoukville, Phnom Penh’s These 3 districts are close to the central from the completion of new serviced apartment sector is benefitting business district and are highly sought from the growing influx of Chinese serviced apartments and after by expatriates. condominiums. expatriates. Chinese companies looking The remaining districts recorded lower to set up companies in Phnom Penh are Despite the incoming supply of serviced occupancy rates; Toul Kork recorded renting apartments by bulk for their staff apartments and condominiums, rental and average occupancy rate of 78%, accommodation, and in some cases, the rates were buoyed by demand growth followed by Chamkarmon (72%), Chroy entire block of serviced apartments, on from Chinese expatriates. The sharp rise of Changva (70%) and Sen Sok (53%). en-bloc. Chinese investments, developments and As a result of this influx, demand for migration during the past year is sustaining Located within close proximity to serviced apartments has sustained demand for serviced apartments. the CBD and offering some of the despite the swelling supply of most competitive rental rates, Toul Central Town in Toul Kork, a newly condominiums and serviced apartments. Kork recorded the largest gain in completed serviced apartment was fully occupancy rate, increasing by 11 However, landlords / operators are still leased en-bloc by a Chinese company percentage points during H1 2019. maintaining their flexibility in terms even prior to its full completion. Apart from being close to shopping of rental and stay duration due to the The average rental rate in the High-end malls such as Aeon Sen Sok and TK increasing number of options available segment across all districts as at H1 2019 Avenue, many new retailers and food & in the market. Demand for serviced was US$23 per sq m per month, Mid- beverage operators set up new outlets apartments is expected to be remain tier was US$13 per sq m per month and as the district becomes increasingly buoyed by Chinese expatriates over the Affordable was US$7 per sq m per month. commercialised. short to medium term.

FIGURE 11 FIGURE 12 EXISTING SUPPLY BY DISTRICT AVERAGE MONTHLY ASKING RENTS FOR HIGH-END UNITS

$ 4,000

3,500

3,000

2,500

2,000

1,500

1,000 Chamkarmon 20% 7 Makara 9% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Bueong Keng Kang 35% Daun Penh 13% Toul Kork 12% Chroy Changvar 7% 1 BED 2 BED 3 BED Sen Sok 3% Mean chey 1%

Source: Knight Frank Research Source: Knight Frank Research

10 PHNOM PENH KEY FINDINGS CONDOMINIUM SECTOR

Existing condominium supply The overall sales rate during the first half of 2019 climbed to 17,532 units with remained stable despite an increasingly fragile global the completion of 6 new macroeconomic outlook and 16 new project launches. developments during H1 2019.

Both the High-end and Mid-tier Supply and Demand These were followed by Toul Kork with segment condos continued 6%, Russey Keo (4%), Daun Penh (3%) growing in tandem with the H1 2019 saw the completion and both Chbar Ampov and Mean Chey, current ratio at 61% and 39%, of 6 condominium projects each with 1%. respectively. across Phnom Penh. Market The High-end segment continues to sentiment remained positive dominate the market with 10,686 units Despite the formation of with an additional 16 (61%) whilst the remaining supply is Boueng Keng Kang as a launches over the same within the Mid-tier segment with 6,846 separate administrative units (39%). district from Chamkarmon, period. Phnom Penh’s cumulative condominium Chamkarmon District still As at H1 2019, the aggregate number of supply is set to triple to 57,262 units by dominates the condominium existing condominiums stood at 17,532; a post 2022, assuming all the launched and supply at 38%. Y-o-Y growth of approximately 50% from announced projects are completed as H1 2018. Six additional condominium scheduled. This increment equates to an Developers remained optimistic projects were completed during the first additional 39,730 units being added to the with 16 new launches identified half of 2019, adding 1,518 units to the total total supply market, reflecting an increase during H1 2019, more than half condominium supply in Phnom Penh. of 227% from the existing stock count. of which were in the Mid-tier The View (320 units), Embassy Central 16 new off-plan launches in Phnom Penh segment. (119 units) and Urban Loft (182 units) were identified and monitored during were collectively completed during H1 2019. Projects within the city centre Affordable and Mid-tier Q1 2019. Whilst the remaining three included Phnom Penh Star (448 units), condominiums are becoming projects; Bali Scenery No. 5 (392 units), Royal Park (293 units), Royal Platinum increasingly attractive to The Diamond Twin Tower (324 units) and Condominium (851 units), HCN Mall and domestic purchasers looking to Vista Condo of Villa Toul Sangkae (181 Residence (640 units) and Agile Sky stay within the city centre. units) were completed during Q2 2019. Residence (963 units). The remaining Both Urban Loft and Vista Condo of Villa 11 projects were launched in suburban Toul Sangkae are in the Mid-tier segment areas, which included Arakawa whilst the remaining four are high-end. Residence (2,000 units), Thmor Madom FIGURE 13 (360 units), CPEC Roman Garden (200), Four of the abovementioned projects FIRST QUARTER SALES OF NEWLY La Vista One (1,750 units), Park Land were spread equally between LAUNCHED CONDOMINIUMS TK Chip Mong (1,300 units) and Condo Chamkarmon and Boueng Keng Kang Versailles Square (340 units). 4,500 2,500 whilst the remaining two were in Sen Sok 4,000 and Russey Keo Districts. Approximately 60% of the new launches 2,000 were in the Mid-tier segment as 3,500 Boeung Keng Kang District was developers try to entice more domestic 3,000 previously part of Chamkarmon 1,500 purchasers. 2,500 District and now separated vide a 2,000 The shift of developers’ new launches 1,000 government sub-decree during Q1 1,500 2019. Despite this administration toward the Mid-tier segment will narrow 1,000 500 separation, Chamkarmon still remains the gap in the market share of High-end 500 the district with most condominium and Mid-tier projects. By post 2022, 0 0 units with 38% of total market share, the High-end segment supply will be Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019 followed by 7 Makara (15%), Sen Sok reduced to 56% whilst the Mid-tier will UNITS LAUNCHED AVERAGE PRICE USD PER sq m (12%) and both Boeung Keng Kang climb up to 44%. UNITS SOLD and Chroy Changva, each with 10%. Despite the overall sales rate of the Source: Knight Frank Research existing and future monitored stock

11 CAMBODIA REAL ESTATE HIGHLIGHTS PHNOM PENH

remaining flat since the end of 2018 at 15%, Selling prices for Agile Sky Residence However, domestic purchasers comprising the sales rate of new off-plan launches start from US$126,000, with an average young families and middle-class workers increased by five percentage points to 30% selling price of US$3,000 per sq m over will only consider condominiums within with the recent influx of Chinese expatriates the net saleable area. This condominium the Mid-tier segment whilst a handful into the country as a key driver of demand offers buyers a choice of 1 to 3- of wealthy Cambodians may consider for both the serviced apartment and bedroom units. a High-end condominium in landmark condominium market. developments as second homes. Hence, Another notable project is Thmor most of the High-end condominiums Madom Condominium. Launched in the continued to be absorbed by foreign first quarter of 2019, it is located in a investors, enticed by rental yields. Prices and Rental growing satellite city in Sen Sok District. This project comprises a total of 360 The increasing supply of condominiums A slight increment in units selling from $1,500 per sq m over in the city is expected to have an average prices was noted the net saleable area, subject to size and adverse impact on prices and rentals. during H1 2019 across level differences. However, we do not anticipate a sizeable correction as the market still tends to be both High-end and Mid-tier CPEC Roman Garden, located in cash driven, and we do not anticipate segments in comparison to the same district as Thmor Madom large numbers of distressed sellers. H2 2018 Condominium, comprises 200 units As for rentals, condominiums will need that are similarly priced, selling from to be priced more competitively, lower The average selling prices for new off- US$1,550 per sq m over the net saleable than serviced apartments, in an attempt plan launches saw a slight increment area. Both projects are in close proximity to lure expatriates living in serviced from H2 2018. Although most of the to one another and are also both Mid-tier apartments moving to condominiums. launches were focused within the projects. Mid-tier segment, a number of newly By 2022, assuming all the launched Location and segmentation continue to launched High-end condominiums projects are completed as scheduled, play major roles in price differentiation during Q2 2019 in both city centre and Phnom Penh will see a more balanced between condominium projects. suburban locations drove the average ratio of High-end and Mid-tier New off-plan launches in the Mid-tier price up. condominiums. Should the increasing segment were priced from US$1,100 interest from domestic purchasers The most notable launched project per sq m over the net saleable area persist, it is likely that the ratio of was the luxurious 44-storey Agile Sky whilst High-end projects ranged from occupiers between expatriate and Residence. Developed by Agile Group US$2,200 per sq m to US$3,500 per sq locals will even out as most domestic Holding Limited, this condominium is m over the net saleable area. located in Boeung Keng Kang 3, Boeung purchasers whom bought condominiums Keng Kang District. BKK District is a are for own residence, hence creating a prestigious district and surrounded more sustainable demand. by numerous High-end and Mid-tier residential and commercial properties. Condominium FIGURE 15 Sector Outlook CUMULATIVE SUPPLY OF FIGURE 14 CONDOMINIUM UNITS QUARTERLY SALES OF Despite the growing (2009-POST2020F) MONITORED AND AVAILABLE domestic interest toward CONDOMINIUM UNITS condominiums, foreign (1Q2016-2Q2019) purchasers were still the No. Units 60,000 No. Units % main driver of demand for 20,000 25 newly launched projects. 50,000 18,000 16,000 20 The recent influx of Chinese expatriates 40,000 14,000 12,000 15 to Phnom Penh has certainly assisted 30,000 10,000 absorption rates of condominiums. With 8,000 10 a rapid urbanisation rate, increasing 20,000 6,000 prices of landed houses as well as 10,000 4,000 5 worsening traffic conditions in the city, 2,000 domestic purchasers looking for homes 0 0 0 are gradually assenting the idea of 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f 2021f 2022f 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Post 2022f UNITS AVAILABLE AND SALES RATE (RHS) condominium living in the city centre EXISTING SUPPLY INCOMING SUPPLY MONITORED (LHS) as opposed to a landed home on the UNITS SOLD (LHS) outskirts of the city. Source: Knight Frank Research Source: Knight Frank Research

12 PHNOM PENH LANDED KEY FINDINGS HOUSING SECTOR

Phnom Penh’s existing landed The rapid increase of Phnom Penh’s Boreys (gated housing stock was recorded and guarded community) underpins that this concept is at 51,278 units as at H1 2019 well-received; international developers are also starting distributed across 131 borey developments. to tap into this segment given its exponential growth with an optimistic market outlook. 18 new projects were launched during H1 2019 with an average sales rate of 44%, marking a 10 Supply and Demand In contrast to condominium developments, percentage point improvement landed housing projects are typically more over H2 2018. Landed housing concentrated in suburban districts as developments (Boreys) offer opposed to city centre. By 2021, the cumulative supply a wider variety of choices Sen Sok District has the highest of landed housing is estimated to homebuyers depending concentration of borey developments to increase to approximately on their affordability and representing 27% of the total existing 73,827 units; an additional preferences. Current stock. This was followed by Russey Keo of 22,549 units, reflecting an available units types and Kamboul District, a new subdivided increase of 44%. district that was formerly part of include Shophouses, Porsenchey District, both representing Linked Houses, Twin Villas, 12% each followed by Dangkao (11%) Average pricing during H1 Queen & King Villas. and Mean Chey (10%) 2019 appreciated notably in comparison to H2 2018 - from As at the end of H1 2019, the total existing The remainder were in Daun Penh (1%), US$715 per sq m to US$940 per stock of Phnom Penh landed houses Toul Kork (1%), Boeung Keng Kang sq m of the gross floor area. increased to 51,278 units across 131 (0.3%) and 7 Makara (0.15%), Chbar different housing developments, marking Ampov (8%), Chroy Chongvar (7%), Por an 11% increase from H2 2018. Senchey (6%), Prek Pnov (3%).

Of the total existing supply, 2,012 As with condominiums, Knight units (4%) were located in the heart of Frank categorises landed houses as Phnom Penh whereas 49,266 (96%) Affordable, Mid-tier and High-end. The units were located in the outskirts or Mid-tier segment had the largest share suburban districts. with 52% of the overall supply, followed by the Affordable segment with 37% and the High-end segment with 11%.

FIGURE 16 FIGURE 17 An estimated 22,549 additional landed EXISTING SUPPLY BY SEGMENT UNITS LAUNCHED, SOLD houses are scheduled for completion & AVERAGE PRICE and anticipated to handover by 2021. As a result, the cumulative supply is No. Units US$ PSM estimated to increase to 73,827 units 7,000 3,000 in total stock. Within the future supply, 6,000 2,500 59% were categorised as Mid-tier 5,000 2,500 followed by 33% in Affordable and the 4,000 2,000 balance 8% in High-end. 3,000 1,500 Phnom Penh is undergoing rapid 2,000 1,000 development and transformation. The 1,000 500 growing population has led to increasing 0 0 demand for housing. During H1 2019,

4Q20161Q20172Q20173Q20174Q20171Q20182Q20183Q20184Q20181Q20192Q2019 there were 18 new housing projects UNITS LAUNCHED AVERAGE PRICE launched in Phnom Penh. Mid-Tier 52% High-End 11% Affordable 37% UNITS SOLD USD PER SQ M

Source: Knight Frank Research Source: Knight Frank Research

13 CAMBODIA REAL ESTATE HIGHLIGHTS PHNOM PENH

New project launches included Eden Two additional projects during H1 Landed Housing Garden Residence (87 units), Landmark 2019 contributing high sales rate 60M (885 units), Landmark 271 – Phase 2 were Varina in Sen Sok District and Sector Outlook (316 units), Peng Huoth the Mera Garden Mongkol PhnomPenh 6 in Chroy The general outlook of (1000 units), New World Kour Srov 3 (1,555 Changva District achieving sales of units), Vimean Phnom Penh (450 units) 60% and 75%, respectively. Phnom Penh’s landed in Russey Keo District and New World housing market remains Kour Srov 3 Tmey in Dangkao District, optimistic and the trend of developed by New World and contributing Prices and Rental increasing project launches a further 1,200 units. is expected to continue over Not showing any signs of slowing, The average pricing of the the short and medium term housing developers continue to 18 new launches in H1 2019 aggressively launch new projects, and saw a notable increase in The sudden spike of new launches (18 landed housing remains the preferred comparison to projects projects) during the first half of 2019 marks choice of residence by domestic developers’ confidence toward building launched during H2 2018 – and providing landed housing. purchasers. from US$715 to US$940 per Subsequent to the General Election in square metre of gross floor Phnom Penh is undergoing an urbanisation process; on top of the growing domestic 2018, the sales rate gathered paced during area. H1 2019. Sales of new launches during Q1 population in the city, the influx of foreign 2019 and Q2 2019 were recorded at More than half of all new launches during expatriates is driving demand for export 45% and 39%, respectively. The overall H1 2019 were categorised as Mid-tier. landed housing. average sales rate during the first Pricing for Mid-tier housing ranged from As land prices continue on an upward half of 2019 was recorded at 44%, 10 US$801 to US$1,700 per sq m of gross trajectory and due to the low density percentage points higher than H2 2018. floor area (GFA) whereas the High-end nature of landed housing development, in housing starts from US$1,701 per sq However, it is worth noting that these addition to improving infrastructure, local m of GFA. Affordable housing is priced optimistic sales rates are largely attributed developers are more likely to source for below $801 per sq m of GFA. to positive sales from New World Kour Srov land in outer city, suburban locations for (Phase 2), which was 80% sold out and Projects were launched within each development in order to be competitive New World Kour Srov 3 which was 66% housing category during H1 2019, with in terms of pricing. Consequently, the sold out. Both of these developments are prices ranging between US$750 to growth of landed housing is expected to located in Dangkao District and launched US$1,700 per sq m of GFA. continue taking shape in suburban areas by a local well-known developer, Hong Piv. as opposed to the city centre. During H1 2019, the average selling price of In addition, Varina Landed Housing the newly launched landed housing projects It is no longer feasible to provide Affordable achieved a sales rate of 60% and MongKol was recorded at US$ 940 per sq m of GFA, or Mid-tier landed housing in the central Phnom Penh 6 achieved a first quarter equating to a 66% Y-o-Y increase over the areas of Phnom Penh. The development sales rate of 70%. same period during 2018. of borey projects in city fringe locations will also drive demand across other real estate sectors and satellite cities will start to emerge along with decentralised office FIGURE 18 FIGURE 19 and commercial hubs, as residents seek to CUMULATIVE SUPPLY BY YEAR SALES RATE OF TOTAL UNITS avoid commuting into the city centre. AVAILABLE AND MONITORED BY QUARTER

80,000 NO.Unit 10,000 1 70,000 9,000 0.9 60,000 8,000 0.8 50,000 7,000 0.7 6,000 0.6 40,000 5,000 0.5 30,000 4,000 0.4 20,000 3,000 0.3 2,000 0.2 10,000 1,000 0.1 0 0 0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f 2021f 4Q16 4Q17 4Q17 4Q17 4Q17 4Q18 4Q18 4Q18 4Q18 4Q19 4Q19

EXISTING SUPPLY INCOMING SUPPLY UNITS AVAILABLE AND SALES RATE (RHS) MONITORED (LHS) UNITS SOLD (LHS) ELYSEE, DIAMOND ISLAND, PHNOM PENH

Source: Knight Frank Research Source: Knight Frank Research 14 SIHANOUKVILLE H1 2019 REVIEW

OVERVIEW Over the last three to four years, premises has skyrocketed, leading to many To further support the rapid development Sihanoukville has become an residents and business owners having to of Sihanouk Province, the Phnom increasingly important province for relocate outside of the city centre. Penh-Sihanoukville Expressway officially began construction in Q1 2019. With an Cambodia, firmly establishing itself as Furthermore, the intensity of estimated cost of US$2 billion, the Phnom the Kingdom’s secondary economic construction has placed additional strain Penh – Sihanoukville Expressway will hub and attracting many international on the province’s infrastructure, with the extend to approximately 190 kilometres. investors, which is currently dominated roads not having sufficient load bearing by inbound investment from China tolerances for heavy goods vehicles During H1 2019, investment into the province across a number of different sectors. transporting construction material, continued unabated. According to the With Cambodia being a strategic which has led to a rapid deterioration Provincial Department of Land Management, partner of China under China’s Belt of road surfaces, and increased traffic Urban Planning and Construction, a total of and Road Initiative, Sihanoukville has congestion within the city and between US$1 billion was invested in the Sihanoukville benefitted from sizeable investments Sihanoukville and Phnom Penh. construction sector during 2018, with construction licenses granted for 297 in the industrial sector, including The above notwithstanding, the upgrading projects, up 58% compared with 2017. arguably Cambodia’s most successful and expansion of Sihanoukville was long industrial zone, the Sihanoukville overdue; it is, after all, a major economic This demand for real estate has pushed Special Economic Zone, the residential hub with Cambodia’s only operational rental prices higher than Phnom Penh in and commercial sectors, gaming and deep sea port and offshore oil reserves certain locations and the sales prices of hospitality, and also soft infrastructure from which extraction is due to start in the condominiums is also nearing parity with including a new hospital. very near future. the capital.

However, the current construction boom However, there needs to be a holistic However, rental growth is expected to has also impacted negatively on the approach to the development of remain flat over the short term as prices province; the sustained demand for land Sihanouk Province, with clearly defined are nearing their ceiling and supply is set to has pushed prices higher than prime zones for industry, agriculture, high-rise increase significantly over the coming years. beachfront land in both Thailand and development and tourism zones, and the Overall, whilst there will be short term Vietnam, which have more established preservation of national parks and areas disruption to the province in the midst of tourism markets. The increase in rents of natural beauty. It is therefore timely that the current construction boom, the long for accommodation and business the Government has released a land use term fundamentals for Sihanoukville are map (overleaf) for the province, which is sound and there exists opportunities much welcomed. across all real estate sectors.

FIGURE 1 FIGURE 2 NUMBER OF APPROVED DOMESTIC & INTERNATIONAL TOURIST ARRIVALS IN SIHANOUKVILLE CONSTRUCTION PROJECTS BY (2010-2018) YEAR OF 2016-2018

No.Arrivals 2,500,000 20.00% 300

2,000,000 15.00% 250

1,500,000 10.00% 200

1,000,000 5.00% 150

500,000 0.00% 100

0 -5.00% 50 2010 2011 2012 2013 2014 2015 2016 2017 2018

0 DOMESTIC INTERNATIONAL TOTAL ANNUAL GROWTH 2016 2017 2018

Source: Ministry of Land Management, Urban Source: Ministry of Tourism Planning and Construction

15 CAMBODIA REAL ESTATE HIGHLIGHTS SIHANOUKVILLE

Sihanoukville Land Use Map 2030

Source: Ministry of Land Management, Urban Planning and Construction

16 CONDOMINIUM SECTOR

Historically, large scale condominium Between H2 2019 and post 2021, a further With the rapid development of Sangkat Bei, development was confined to the capital 17,997 units spread over 27 on-going both the adjoining communes, Sangkat city of Phnom Penh. The wave of Chinese projects are scheduled for completion. Pir and Sangkat Boun, experienced a investment into Sihanoukville makes it one direct spillover effect. The first half of 2019 18 of these projects are large-scale of the most active provinces in the Kingdom saw the launch of The New Landmark projects, with 71% of the units categorised for real estate development with numerous and Xingshawan Bay Residence, both as High-end. The remaining 29% are within high-rise residential projects springing up comprising 1,550 units. the Mid-tier segment. throughout the coastal province. By post 2021, assuming all the identified In terms of geographic distribution, As at H1 2019, the cumulative supply projects are completed, the total supply will Sangkat Bei currently comprises the most of condominiums was recorded at swell to 18,534 units, resulting in a growth completed condominium units with 83% of approximately 537 units with more than rate of 245% per annum from 2018. the overall supply; the remaining 17% are 17,000 units under construction and located in Sangkat Pir. In terms of future Take-up rates of newly launched projects scheduled to complete between H2 2019 supply, Sangkat Bei continues to dominate were encouraging, recorded at 40% for and post 2021. the overall supply with the largest number projects launched during H1 2019 with One of the most notable existing of new launches during the first half of 2019 the overall sales rate indicating a healthy condominium projects is the beach fronting recorded at 7,189 units. demand at around 50%. Sunshine Bay, located along Independence Assuming all launched projects are Average selling prices of newly launched Beach. Initially sold to individual investors, completed as scheduled, the condominium condominiums during H1 2019 were the property has now been leased distribution will be concentrated in Sangkat recorded at US$2,460 per sq m over en-block to Golden Sands Hotel Group Bei (77%), followed by Sangkat Boun (20%) the net saleable area, almost doubling to be operated as a hotel. This project and Sangkat Pir (3%). from the average pricing during H1 2018 contributed 340 units to the total stock of US$1,328 psm of Net Saleable Area, count in Sihanoukville. Other completed New launches in Sangkat Bei included largely due to the launch of High-end condominiums and apartments are small Star Bay, Treasure Bay, Prince Golden Bay, condominiums outpacing Mid-tier units. scale projects; namely, Classic Condo, Bay, Prince Tian Xi Wan, Morgan Cvik Apartment 1 and Cvik Apartment 2, Peninsula Garden, and 88 providing a combined 197 units. Residence.

FIGURE 3 FIGURE 4 AVERAGE LAUNCHED PRICE IN SIHANOUKVILLE CONDOMINIUM CUMULATIVE SUPPLY (2018-POST 2021F) SIHANOUKVILLE (2015-H12019)

No. Units US$ 20,000 3,000

2,500 15,000 2,000 10,000 1,500

1,000 5,000 500

0 0 2018 2019f 2020f 2021f Post2021 2015 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 NEW SUPPLY CUMULATIVE SUPPLY

Source: Knight Frank Research Source: Knight Frank Research Outlook: As the most active coastal province in are able to command a much higher Developers’ confidence and positive market Cambodia, demand for condominiums in premium in terms of pricing. Despite the sentiment toward Sihanoukville was evident Sihanoukville is largely driven by Chinese premium pricing, sales rates are still very by successful launches of several large- investors and purchasers, most of whom encouraging for such units. We anticipate scale developments in recent years. As the purchased for investment purposes. As pricing for beachfront condominiums to nation’s next tourist hub after Siem Reap, a result of the scarce beachfront land, continue to escalate due to the reducing we anticipate that Sihanoukville will witness beachfront condominiums with sea views availability of prime beach front land. a rapid transformation over the medium to long term into a booming tourist and economic hub.

17 CAMBODIA REAL ESTATE HIGHLIGHTS SIHANOUKVILLE

HOTEL SECTOR

The Sihanoukville tourism and hospitality H2 2018 to H1 2019 saw the highly Between H2 2019 and Post 2021, an sector is rapidly evolving, in line with anticipated openings of the Luxury & Upper additional 7,880 hotel rooms are scheduled Cambodia as a whole, shifting away from Upscale (5 Star) Six Senses Koh Krabey, for completion, the majority of which (46%) the traditional ‘backpacker’ market to cater Alila Koh Russey and Shinta Mani Wild, are within the Upscale & Upper Midscale to higher value tourist arrivals. whilst openings within the Upscale & Upper segment, followed by Luxury & Upper Midscale (4 Star) segment included Prince Upscale hotels (32%) and Midscale & Growth in direct flights to Sihanoukville is Time Hotel, Xihu Hotel, Nahai Pearl Hotel Economy (22%) hotels. a key driver of the tourism and hospitality and Sunshine Bay Hotel, providing an sector. In 2018, Sihanoukville airport If all hotels complete as scheduled, the additional 1,581 keys. registered a 92 percent Y-o-Y growth in supply in Sihanoukville will surpass that of tourist arrivals, servicing an estimated The Midscale & Economy (3 Star) segment Phnom Penh. The total number of rooms 650,000 incoming passengers. still dominated the market at 44% of the will stand at approximately 13,118, resulting overall existing supply, followed by the in an increase of 150%. China continues to be the lead source Upscale & Upper midscale (4 Star) segment market, followed by neighboring countries Notable added projects during H1 at 39% and the Luxury & Upper Upscale (5 including Malaysia and Vietnam. 2019 included Prince Tian Xi Wan, New Star) segment at 17%. Landmark Hotel, Nan Hai Hotel and As at H1 2019, the existing supply of By location, Sangkat Bei remains the Sokha Bayview. hotels with 50 rooms and above in preferred choice and comprises 53% Sihanoukville was recorded at 5,238 Construction of the future hotel supply of the existing supply in Sihanoukville, rooms across 46 hotels, reflecting an is currently dominated by Chinese followed by Sangkat Boun (40%), Koh increase of 69% compared with the same developers. Rong (4%) and Ream (3%). period in 2018.

FIGURE 5 FIGURE 6 SIHANOUKVILLE HOTEL CUMULATIVE SUPPLY (2004-POST2021) FUTURE DISTRIBUTION BY YEAR AND CLASSIFICATION

No.Rooms

14,000 Post 2021f

12,000

10,000 0 2021f 8,000

6,000 0 2020f 4,000

2,000 0 2019f 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 200 400 600 800 2019f 2020f 2021f 1,000 1,200 1,400 1,600 NEW SUPPLY CUMULATIVE SUPPLY Post2021f LUXURY UPSCALE & UPPER & UPPER UPSCALE MIDSCALE MIDSCALE & ECONOMY Source: Knight Frank Research

Outlook: The growth in tourism arrivals has been Over the medium to long term, the underpinned by an increasing number of Sihanoukville hotel sector is anticipated direct flights to Sihanoukville, especially to expand exponentially, especially in the the connectivity with China. Recently, Luxury & Upper Upscale and Upscale & several Chinese owned airline companies Upper Midscale categories, as we see a launched direct flights from cities in China number of new hotels in future pipeline to Sihanoukville, indicating that Chinese being operated by International hotel tourists and business travellers are operators including US based Marriott expected to increase substantially. International, Intercontinental, Accor, Wyndham and Renaissance.

18 RETAIL SECTOR

The rapid development and evolution As an active province in terms of real Furi Time Square Mall, slated to open by of Sihanoukville has left a gap that estate development with various on-going the end of 2019, has already achieved needs to be filled in the retail sector. projects in the pipeline, eight residential a 90% pre-commitment occupancy Sihanoukville is set to attract high- developments comprising retail podiums rate from its successful pre-leasing. The value tourists with a higher spending are expected to deliver a total net lettable new 12,000 sq m shopping mall will be propensity which is fueling demand for retail space of 86,711 sq m between the anchored by Legend Cinema, the largest international standard retail offerings. second half of 2019 and post 2021. chain of cinemas in Cambodia, alongside other popular international brands such as During H2 2018, the first purpose-built Over the next three years, assuming all Starbucks, , Koi, KFC, shopping mall project known as Furi launched and monitored developments Levi’s and Dr. Professional Clinic. Time Square Mall announced its ground are completed as scheduled, the total breaking. This US$10 million joint-venture retail space within the coastal province The growing number of residential project between Furi Real Estate and is forecasted to increase to 98,711 sq m developments allows retailers to tap into other international investors will provide of NLA. this growing residential community. a net lettable area of 12,000 sq m and is The introduction of Furi Time Square The on-going infrastructure improvements scheduled to complete by the end of 2019. Mall to Sihanoukville, with an average and construction projects across the To enhance marketability, larger scale pre-leasing rental price ranging between city is an attractive prospect for retailers, residential and hospitality projects typically US$45 per sq m to US$55 per sq m, puts however, the worsening traffic condition include a retail podium in the overall Sihanoukville retail rents at some of the is becoming a deterrent to the local component mix, hence most of the on- highest in the Kingdom, surpassing even populace. going projects in Sihanoukville comprise that of Phnom Penh. retail podiums.

FIGURE 7 FUTURE SUPPLY OF RETAIL SPACE BY YEAR AND GRADE (2019F - POST-2020F)

Sqm 35,000

30,000

25,000

20,000

15,000 FURI TIME SQURE MALL, SIHANOUKVILLE

10,000

5,000

0 2019f 2020f Post 2020f

PRIME SECONDARY

Source: Knight Frank Research

Outlook: The on-going construction and retail format, hence directly benefitting However, the resident population of residential development has presented purpose-built shopping malls. Sihanoukville remains small and tourist arrivals alone will not be sufficient to sustain retailers with an opportunity to tap into The fact that average retail rents have the amount of retail space expected to enter the growing community in Sihanoukville. surpassed Phnom Penh suggests the market over the coming years. With the increasing congestion and that retailers anticipate demand from worsening traffic condition in the city consumers with a higher spending centre, many retailers will be willing power than in the capital, particularly to take up space in shopping malls from Chinese expatriates. as opposed to the current traditional

19 CAMBODIA REAL ESTATE HIGHLIGHTS SIHANOUKVILLE

INDUSTRIAL SECTOR

Strong diplomatic relations between Phase 1 of Sihanoukville SEZ has been causing many individual detached factories Cambodia and China has directly been the most successful in Cambodia. As located outside of SEZ’s to sell out and benefitted Sihanoukville’s industrial the best performing SEZ in the Kingdom, it relocate outwards to pave the way for development. Sihanoukville is emerging comprises 161 registered companies with redevelopment. as Cambodia’s leading industrial hub an aggregate investment capital of about Current asking rents for existing factories as Chinese investors envisioned it to be US$918 million, creating circa 25,000 job within the SEZ’s in Sihanoukville remained likened with the city of Shenzhen in China. opportunities. flat at US$2.10 per sq m per month whilst To promote the industrial sector, the The success rates of a SEZ’s remains asking prices for land on long leases (20 government of Cambodia has committed largely dependent on the effective years - 50 years) ranged between US$30 to infrastructure improvement over the long management of the particular SEZ. Despite per sq m per month to US$65 per sq m term period which includes the expansion the completion of the port expansion and per month over the land area, paid as a of the existing deep seaport operated by ability to handle increased volumes of one of premium. the Sihanoukville Autonomous Port (SAP), container traffic, Sihanoukville Port Special in addition to a licence permitted for a Economic Zone (SPSEZ), being nearest to deep sea port witin Steung Hav Special the port remains mostly vacant. Economic Zone and the Phnom Penh – Land prices in Sihanoukville’s prime Sihanoukville Expressway. locations have seen a dramatic rise Currently, the deep sea port acts as the of more than 150% over the past 18 main industrial driver in Sihanoukville as months. Rentals followed suit and have it is the only operational deep sea port in surpassed land rents in Phnom Penh Cambodia, acting as the main logistics hub serving the nation. Industrial activities in Sihanoukville include textiles, garments, footwear, beer, hardware, machinery and FIGURE 8 construction material. LONG TERM LEASE PRICES FOR SSEZ, SAP AND STUENG HAV SEZ H1 2019 Apart from being an import and export hub, the discovery of the first off-shore oil reserves off the coast of Sihanoukville will further drive the local and national Lease Tenure & Price Per sq M economy. Over The Land

One of the main recipients of foreign Developments Price investment in the industrial sector has been Period Special Economic Zones (SEZ). In a bid to attract additional foreign investments Sihanoukville Special Economic Zone (SSEZ) 20 years-50 years US$30-US$50 and to remain regionally competitive with neighbouring countries, a number Sihanoukville Autonomous Port (SAP) 10 Years-50 Years US$55-US$65 of incentives are provided to investors in SEZ’s, one of the main being tax incentives Stueng Hav Special Economc Zone N/A N/A and ready infrastructure.

Outlook: Strategically located in the central region of The commencement of oil extraction by activities, disposable household incomes Indochina, Sihanoukville has seen increasing Singapore-based oil and gas company, and consumer spending. With a positive industrial activity and investment. To achieve KrisEnergy Ltd, will give an additional correlation, the real estate sector will be its long term goal, the Government of boost and support to Cambodia’s current moving in tandem, specifically the industrial Cambodia released a 10-year Industrial economic trajectory. Expected to fuel sector. Thus, the commencement of this Development Policy (IDP) 2015 – 2025, economic growth, oil exploration and extraction is expected to be the main driver outlining its strategic framework, policy production in a country typically increases of Sihanoukville’s industrial sector over the measures, expansion and modernisation of the nation’s income, accelerates job growth medium and long term. SMEs, improving legal environment, human and lowers the cost of manufacturing resources and land use policy. leading to an increase in economic

20 SIEM REAP H1 2019 REVIEW

OVERVIEW In line with our H1 2018 Siem Reap and tourism industry is, and will remain, To cater to the growing number of Review, we are seeing increasing the main driver of development activity in tourist arrivals, a number of small scale investment activity in the province; the province. water parks have been developed to several new residential projects were expand the tourism offering in Siem The hotel sector will continue to become launched, a holiday home investment Reap, however, they are mainly targeted more competitive with the opening of offering, Grace Resort, was at the domestic market. There are also Ibis Styles in H2 2018, the re-opening of announced, the Song Saa Reserve, an several other theme park / activity based the refurbished FCC Angkor managed exciting new project by the developers of attraction in the pipeline, including the by Avani Hotels & Resorts, a Minor Song Saa Private Island, was launched proposed Wild Life Park & Aquarium Hotels brand, Banyan Tree set to enter and two new retail formats opened their – being funded by a consortium of the market under their Angsana brand, doors. Cambodian, Japanese and American Hilton Hotels indicating that they are investors. Both the Heritage Walk and Makro looking for local development partners opened during H2 2018 and H1 2019, and the on-going renovation works at In contrast to the continued growth offering two alternative retail formats to the Raffles D’Angkor, which is due to in the tourism sector, the recently the existing duty free outlets and retail reopen in October 2019. published Population Census 2019 centres. Heritage Walk is Siem Reap’s showed that the population growth in The Angkor Grace resort is a new type largest purpose built retail mall, whilst the province moderated between 2008 of real estate investment offering in Makro offers the same wholesale format and 2019 as compared with the growth Siem Reap. Comprising 312 units of two as its Phnom Pent outlet. recorded between 1998 and 2008. bedrooms, the properties are being sold ’s population was Additionally, ANM Premium Office, part on a 10 year sale and leaseback scheme recorded at just over 1 million, equating of the King’s Road Angkor’s extension, with a guaranteed net return of 8% per to a compounded annual growth of 1.1% was officially opened signifying fledgling annum and a complimentary 14-day per annum between 2008 and 2019, demand for more corporate style office stay within the resort for the owners. below the national average of 1.2% and space rather than the traditional shop However, scheduled completion as been significantly lower than Phnom Penh. office stock that currently dominates pushed back by one year to 2021. existing supply. Thus, whilst demand for hotel Although growth in international tourist accommodation, tourist activities Whilst investment in Siem Reap’s arrivals moderated during 2018, it and attractions will continue to grow, real estate and construction sector is continued on its upward trajectory developers looking at other real becoming more diverse, the hospitality increasing by 5.4% Y-o-Y to 2,590,895 estate sectors need to have a sound arrivals. understanding of the market fundamentals of Siem Reap.

FIGURE 1 POPULATION GROWTH

Population (000’s) CAGR CAGR Locality 1998 2008 2019 (1998 – 2008) (2008 – 2019)

Cambodia 11,438 13,396 15,288 1.6% 1.2%

Siem Reap 696 896 1,007 2.6% 1.1%

Phnom Penh 1,000 1,328 2,129 2.9% 4.4%

Sihanoukville 156 221 303 3.5% 2.9%

Source: National Institute of Statistics Ministry of Planning / Knight Frank Research

21 CAMBODIA REAL ESTATE HIGHLIGHTS SIEM REAP

HOTEL SECTOR

The accommodation offering in Siem This represented a Y-o-Y increase of International – a -based Reap is still dominated by small scale 6.5% as compared with the same period multinational company with a global boutique hotels, of which the supply in 2018. portfolio of 520 hotels. continues to grow with new hotels The majority (63%) of the existing The future supply pipeline of hotels with opening and closing on a near monthly supply falls within the Upscale & Upper 50 rooms and above remains limited basis, and is the most competitive Midscale classification, followed by at 740 keys across 4 hotels. However, segment in Siem Reap. Luxury & Upper Midscale (23%) and there are many boutique hotels also However, Knight Frank only monitors Midscale & Economy (14%). under construction and nearing hotels with a room inventory of 50 keys completion. The most notable opening between H1 and above, except those hotels in the 2018 and H1 2019 was the 112-room Ibis The future supply comprises mainly Luxury & Upper Upscale segment such Styles – Cambodia’s first internationally Luxury & Upper Upscale (58%) followed as Amansara and Phum Baitang, both of branded Midscale & Economy hotel, by Upscale & Upper Midscale (42%), which have room inventories below 50. further underlining the evolution of the with not Midscale & Economy hotels in As at the end of H1 2019, the existing sector in Siem Reap and Cambodia. the development pipeline. supply of hotel rooms in Siem Reap Additionally, The FCC Angkor was was recorded at 11,848 keys across 85 refurbished and reopened under hotels, equating to an average room the management of Avani Hotels & inventory of 139 keys per hotel. Resorts, which is a brand under Minor

FIGURE 2 FIGURE 3 INTERNATIONAL TOURIST ARRIVALS TO SIEM REAP PROVINCE EXISTING HOTEL SUPPLY BY CLASSIFICATION

No.of Arrivals Annual Growth 3,000,000 15%

2,500,000 10%

2,000,000 5%

1,500,000 0%

1,000,000 -5%

500,000 -10%

- -15% 2013 2014 2015 2016 2017 2018

NTERNATIONAL TOURIST ARRIVALS (LHS) NNUAL GROWTH (RHS) Upscale & Luxury & Midscale & Upper Midscale Upper Upscale Economy

Source: Ministry of Tourism / Knight Frank Research Source: Knight Frank Research Outlook: Of all the tourism destinations in Whilst tourism arrivals to the province The above notwithstanding, Angkor Cambodia, Siem Reap is by far the increased during 2018, growth will continue to be one of the world’s most developed but also the most moderated to 5.4% Y-o-Y. Furthermore, leading tourist destinations and Siem competitive. There is a plethora of the number of Chinese arrivals Reap will continue to be a ‘bucket list’ accommodation offerings to choose continues to grow whilst arrivals from destination for many travellers. We will from with good quality, recently other countries are declining. Typically, see a diversification of accommodation completed hotels offering rooms Chinese tourists arrive as part of offerings, such as The Beige, for hotels from US$40 per night, which places a group tour, with predetermined to have a competitive edge and hopefully significant pressure on profitability accommodation, tours, shopping stops the development of more tourism as operators vie for guests in a bid to and dining venues already arranged attractions such as water parks, theme maintain occupancy rates. so only a small segment of the local parks and the eagerly awaited aquarium economy benefits. and more.

22 RETAIL SECTOR

Purpose-built shopping malls in Siem beverage tenants, notably, Starbucks, KOI floor area of 13,560 square metres with a Reap began construction some years ago. Thé Cambodia, Amazon, The Dairy Queen, net lettable area of 9,800 sq m. However, However, the shopping malls were small- Pizza Company, Domino Pizza, Swensen, Makro is wholly owner-occupied. scale projects; community malls below Tous Les Jours, De Tummour Cambodia, As a cash & carry wholesaler, Makro not 10,000 sq m. AKA Cambodia, The Hashi, Bar B-Q Plaza only attracts small businesses, vendors, and Green Suki Soup. Additional stores Currently, the retail landscape in Siem Reap hotel and restaurants in Siem Reap but scheduled to open by H2 2019 and H1 2020 is dominated by traditional shophouses, also the local resident population. are Lucky Supermarket, Guardian, a skybar, small-scale convenience stores and local a food court and a game zone. The opening of Makro and The Heritage markets, demand for which is mainly driven Walk contributed 21,789 sq m of net by tourism activities. The mall inaugurated with a 75% lettable area to the retail supply driving it occupancy rate with most of the vacant However, in recent years, Siem Reap’s up to 49,914 sq m, equating to a Y-o-Y spaces compiled on its upper floors, retail landscape has been undergoing a growth of 77% from the existing supply. the 3rd and 4th floors. It comprises a transformation with a variety of international good sectorial mix with Legend Cinema Still at its infancy stage, Siem Reap’s and local retailers entering the market and as their anchor tenant, supported prime retail space comprises only 22,089 offering modern retail formats. by fashion, lifestyle, health & beauty, sq m of net lettable area, from T Galleria, Completed during H2 2018, The Heritage telecommunication and supermarket, Angkor Duty Free and The Heritage Walk. Walk is the first larger-scale purpose-built catering to all demographics in Siem Reap. Another proposed retail project, Koulen mall in Siem Reap, offering a variety of food After opening their doors in Phnom Penh Shopping Mall, offering 20,580 sq m & beverage, fashion and entertainment two years ago, Makro Thailand, a cash net letttable area of retail space (over outlets. It comprises an approximate gross & carry retailer, officially inaugurated their 34,300 gross floor area) is anticipated to floor area and net lettable area of 40,000 sq second branch in Siem Reap. Sited on officially open its doors by year 2020. The m and 12,000 sq m, respectively. the outskirts of Siem Reap town, in Prasat completion of this shopping mall will drive Making up 42% of the total NLA, Heritage District, it is constructed over a 5 the cumulative supply up to 70,494 sq m Walk secured various multinational food & hectare parcel of land, providing a gross of net lettable area.

FIGURE 4 FIGURE 5 CUMULATIVE SUPPLY OF RETAIL SPACE IN SIEM REAP TENANT MIX WITHIN HERITAGE WALK

Sm , , , , , , , , , Source: Knight Frank Research f f Foo eerage ealth eauty ifestyle N MPT MTI SPP ooks, Stationery ntertainment Fashion Toys Suermarket Telecommunication Serices Source: Knight Frank Research Source: Knight Frank Research Outlook: One of the key drivers for Siem Reap’s as the retail sector progressively moves international food & beverage retailers retail sector is the strong and stable away from traditional formats, demand has shown the need for additional economic growth in the Kingdom as a for new and modern outlets will be modern retail formats as Siem Reap whole, contributing an improvement to increasingly sought-after. could potentially be a province for not only its heritage visitation, but also a the income bracket, along with a rise in The completion and success of The shopping destination. disposable income. Also underpinned by Heritage Walk in attracting many the tourism and hospitality sector, and

23 CAMBODIA REAL ESTATE HIGHLIGHTS SIEM REAP

RESIDENTIAL SECTOR

Historically, Siem Reap has not been The project has proved popular with As at H1 2019, a new project was on the radar residential developers, a 100% sell out rate for their first and launched in by hence growth a the residential market second phases. Subsequent phases Urban Living Solution, a Phnom Penh- remained stunted. The improvement of thereafter have also achieved a very high based developer with an existing track infrastructure, especially National Road take-up rate. record including Urban Loft and the 6, has encouraged more domestic on-going Urban Village project. Bakong However, the market is price sensitive, tourists travelling to Siem Reap by road Village is a low-density development illustrated by the Les Bijoux D’Angkor and gradually kick-started the residential comprising 105 units of shop houses and project. Initially announced in 2016, market. 245 units of 3-storey walk-up apartments comprising 84 units of low-rise apartments together with a school, market and Traditionally a tourist hub with limited within a gated & guarded community, the parking spaces. investment activity, to-date there are no project is currently on hold. purpose-built condominiums. Designed by AERNE Architects & Upon completion of Borey Angkor Associates (AAA), it follows the concept Individual landed houses, detached Palace, the same developer launched and of a gated, guarded and close-knit villas, shop houses, flat houses, low-rise constructed Borey The Premier Angkor community living. Prices start from and low-density apartment blocks have Palace. Sprawling over a land area of US$61,000 per apartment unit. dominated supply. approximately 13 hectares, comprising 815 units of terraced, semi-detached and Other notable launches identified during Borey Tourism City, developed by OCIC, is detached villas, selling prices range from the first half of 2019 were Angkor Grace one of the largest existing projects covering US$49,900 to US$333,200 per house. and Vnom Empire, both progressively a land area of more than 60 hectares and under construction offering various comprising single villas, twin villas and flat To-date, the first phase of this new options of houses, contributing 312 units houses as well as leisure facilities. development is completed and provides and 27 units, respectively. various options of house type.

Source: Knight Frank Research

Outlook: Developments in Siem Reap have To-date, there are no launched high-rise However, land prices in the city centre generally only focused on the tourism residential projects due to the height are high due to the high commercial and hospitality sector. Residential restrictions within the Zone. value driven by the tourism industry. Therefore, we anticipate future launches developments, especially landed housing, Despite the increase of development of housing developments to be located locally referred to as Borey, have really activity and supply, rentals for residential on the outskirts of the city. only started to take off during the accommodation remained unchanged past two years. Despite infrastructure and are significantly below Phnom Penh improvements and increasing economic and now Sihanoukville. activity, demand for residential investment in Siem Reap is still limited to wealthy Cambodians purchasing a second holiday home in Siem Reap.

24 CAMBODIA CONTACTS Eric Y H Ooi Chairman +855 23 966 878 [email protected] Ross Wheble Country Head +855 23 966 878 [email protected]

VALUATION & ADVISORY Law Kheng Fong Manager [email protected]

RESEARCH & CONSULTANCY Hakim Ly Senior Analyst [email protected]

INVESTMENTS/COMMERCIAL AGENCY Ross Wheble Country Head +855 23 966 878 [email protected]

RESIDENTIAL SALES & LEASING Jonathan Baxter Manager +855 23 966 878 [email protected]

Knight Frank Research provides strategic advice consultancy services and forecasting to a wide range of clients worldwide including developers investors funding organisations corporate institutions and the public sector. All our clients recognise the need for expert independent advice customised to their specific needs. Knight Frank Research reserves the rights to revise the views and projections according to changes in market conditions.

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