QUARTERLY REPORT Q REPORT. CALL TODAY FOR JANUARY-MARCH 2015

Transcription

1 QUARTERLY REPORT Q REPORT FOR JANUARY-MARCH 2015 PROPERTY VALUATION PROPERTY CONSULTANCY PROPERTY MANAGEMENT PROPERTY RESEARCH CALL TODAY

2 FOR JAN-MAR 2015 QUARTERLY REPORT Trust - Experience - Professional WE RESEARCH, ANALYSE & REPORT Real estate development & research Market researches, fiscal & economic analysis Property fesibility study & research Our dedicated research team provides a full comprehensive advice to both local and foreign investors on Cambodia real estate industry and economic development. We measure and evaluate current and projected economic and market conditions which have direct impact on real estate, thus allowing our clients to manage their risks and take advantage of future opportunities. ZONE CLASSIFICATION - CBD = Central Business District (Khan Chamkarmorn, Daun Penh, 7 Makara, Toul Kork) - Sangkat Boeung Keng Kang = Sangkat Boeung Keng Kang I, Sangkat Boeung Keng Kang II, Sangkat Boeung Keng Kang III - Outskirt = Khan Mean Chey, Dangkor, Porsen Chey, Russey Keo, Chroy Chong Var, Prek Pnov, Chbar Ampov, and Sen Sok Page 01

3 1. OFFICE SPACE 1.1. Office Space in Phnom Penh The Cambodian office space market turned more positive in the Q1 2015, with the new supply increasing slightly. In the new market of office space, strongest growth of supply led many new companies to open in Cambodia. If compared to the same period last years, the supply of office space was about sq.m and will increase to sq.m in Office grade B is still the most popular trend for developers because the rental fee is lower than grade A's. QUARTERLY REPORT FOR JAN-MAR Future Supply Concerning under construction projects like Landmark and the Bridge, the supply of office space will increase significantly from 300,000 sqm to 330,000 sqm in These figures indicate that we will see the new supply of office space Grade A increase from 29% to 37%; Grade B will be 62%, and Grade C will be only 1% Current Supply Lately, the office space supply has increased, with the new supply of the office space on the main road completed in the earlier Office grade B is still the most popular trend for developers because the rental fee for this kind of building is lower than that of grade A. While office space grade A accounts to about 29% of the market trend, Grade B occupies about 69%, and Grade C is unsurprisingly 2% Rental Price per Sq.m As of Q1 2015, the new supply slightly increases than that in Q because the new supply on main road has been constructed. Despite the increase in the supply, the price of office space is also increasing in this term with range from 5% to 10%. The average rental price in both Vattanac Capital and Canadian Tower slightly increases. Over the review of Q1, the average rental price is from $23/sq.m to $38/sq.m for Grade A, $12/sq.m to $30/sq.m for Grade B, and $10/sq.m to $15/sq.m for Grade C. This price does not include management service and electricity bills. Page 02

4 Subsidiary of Bonna Realty Group - វ ស យអចលន ព ក បល អ ព ច ប អចលន ព ក ងក ច សន (ក ច សន ទ ញ-លក, ក ច សន ជ ល) ស ក វ វអ ព លក ណ គត យ ត ន ងគ ន តផ វច ប អចលន ព កម ច ប រកម ស ទ អចលន ព ន ងច ប ដ ធ កម ច បន ក អចលន ព កម ច ប ស ប ណ ស ប ជ វកម អចលន ព - ក ងក ច សន ណ ជ កម ន ងក ច រធ រ ក ច ផ វច ប រវ ន គ ន ងសហ ត បត រ ណ ជ កម ក ងក ច ម ងទ ញ-លក ន ង រ ម លន ធ ណ ជ កម កម ច ប ស ទ កម ស ទ ប កម រច ប ណ ជ កម រ ម ន ត តន, បន ប ណ, ប ណ តង ន ងបង ពន ជ វកម, លក ន ក មហ ន - យវ ទ ព ន ត រ - Real Estate and Property Real Estate and Property Consultancy Draft contrat (Proceed sale / purchase agreement-lease Agreement Service) Due Diligence to titling & Legal Opinion Ownership transferring of Title Deed Pawn Registration of Real Property Real Estate Business Licensing - Commercial contract and Trade Investment and general corporate service Sale-purchase agreement/transfer business Intellectual property trademark Commercial trade advice include: annual declaration of commercial enterprise renewal of certificate of incorporation Real Estate Business Licensing - Alternative Property dispute resolution (Mediation, Negotiation, and Reconciliation) #126, Norodom Blvd, Sangkat Tonle Basac, Khan Chamkar Morn, Phnom Penh, Cambodia. (+855) (+855) bpconsultant@bonnarealty.com.kh Page 03

5 FOR JAN-MAR Management Fee QUARTERLY REPORT 1.7. Occupancy Rate from Management fee for office space grade A is charged from 4$/sq.m to 5$/sq.m, Grade B from 1.5$/sq.m to 4$/sq.m, and grade C from 1$/sq.m to 4$sq.m. Generally, these management fees include maintenance service, cleaning, and security, and exclude the electricity bills. Normally, the electricity is supplied by EDC and it is charged from 1,000riel to 1,200riel/kw. Looking at the most trend on office space in 2007 and 2008, we see that there was a high demand of office spaces because foreign investors came to invest in Cambodia, while the supply was narrow, leading to a situation that the occupancy rate was fully occupied. Unfortunately in 2009, the economic crisis made the demand of rental office space tragically decreases but it started to go up again from However, from 2013 till now the occupancy rate has fallen down slightly because of the increase in new many new supplies of office building. For example, Vattanac Tower is the giant supply of office space grade A providing more than 34,000 sq.m Occupancy Rate According to the flash research by Bonna Realty Group, the occupancy rate of office space in Q decreases than last year, dropping from 85% to 81%. The most important reason why there is decrease in the occupancy rate is because of the increasing of the new supply of grade B and the relocation of some companies that used to rent any space from those office buildings Total Space Available There is still available office spaces for rent in the CBD area thanks to the massive supply from Vattanac Capital, which keeps the vacancy rate remain from 15% to 20% of the office space market. The total space available is approximately 10,000 sq.m. Page 04

6 QUARTERLY REPORT FOR JAN-MAR Office Space Status We notice that many new projects have been constructed and will be finished between 2017 and 2018, so the office space under construction will be new chief supply in the future Office Supply by Location & Grade According to our research, the location rich of office space is on the Monivong Blvd, including Vattanac Capital, Canadian Tower, Phnom Penh Tower, etc. Vattanac capital which supplies the Grade A office space is designed and constructed to the highest international standards for Cambodia s emerging business and leisure community. Moreover, along the Monivong Blvd. locate office spaces, mostly Grade A business building. Canadian tower is situated in the heart of Phnom Penh, known as the first highest building comprising 32 stories, and considered the Grade A business building along the Monivong Blvd. Beside this location, many business buildings and supplies of Grade B office space such as The Icon, Tai Meng, B-Ray Tower, SSN Building, and Boritra Building are located along Norodom Blvd. These grade B office space supply massive space to investors and businessmen. Statistically, Khan Chamkarmorn is the most popular Khan among other Khans in the CBD area (Central Business District) located in the city center. This location is popular with not only office buildings but also both national and international companies, organizations, embassies and especially condominiums, apartments, retail stores and hotels. 2. RETAIL 2.1. Retail in Phnom Penh The retail landscape in Phnom Penh is undergoing dramatic changes. Retails in Cambodia, focused almost entirely within Phnom Penh, is undergoing a transition from traditional local markets to purposefully built shopping centers and department stores. The success of the 1st supply of Sorya Shopping Center since 2003 and other malls around Phnom Penh, the lack of high-quality retail spaces and the increase in consumer spending have provided retail developers with the opportunity to develop new centers. Currently, there are around 12 retail stores in Phnom Penh supplying on the market equal to almost 400,000 sq.m. As we see, Aeon Mall (Japanese Developer) is the biggest supply on the retail market nowadays and it is well known by Cambodian for providing brand products in the shopping center. Famous brands that can be found in AEON Mall include, Pedro, Levis, Adidas, Florentino, VNC, Puma, Carlee New York, Daiso Japan, The Face Shop, Restaurant and beverage like Costa Coffee, Dakasi, KFC, the Pizza Company, Tous Le jour, etc. Mostly, the retailers come from Japan, China, Thailand, Singapore, and Western countries. Therefore, the new trend of retail shopping will be increasing rapidly in the future, supplying many urban shopping centers. The future supply is mostly located in the condominium buildings like Moscow City, D.I Riviera, Olympia City, Peng Houth (Polaris), Land Mark, Diamond One, Casa Meridian, and New World (La Sen Sok) and includes the new supply from Malaysians; Pakson Store has planned to open retail stores in 3 places (along Russian Confederation and in front of Phnom Penh International Airport and The Bridge Building). Totally, the future supply will be more than 900,000 sq.m by Page 05

7 FOR JAN-MAR Retail by Grade QUARTERLY REPORT 2.4. Occupancy Rate According to our research, retail grade A is the most supply in market, and it will continue to increase in the future, with Parkson Store, Exchanged Square and some Condominium and Borey such as The Bridge, Casa Meridian, Olympia City, DI. Rivera, Moscow City, Skyline Mall, Peng Houth (The Star Platinum Polaris) and New World (Lasen Sok) also providing retail stores in their buildings. By the end of 2015, Parkson Store will have added a supply of retail grade A, so this is the big development of retails in future. Meanwhile, retail grade B and grade C are still in low supply in the market because retail market grade B and C do not provide enough facilities and entertainments such as cinema, brand shop, or franchise restaurant. Another reason is that Cambodian people have turned attention to shopping and walking in retail grade A. As of the first quarter of 2015, the occupancy rate has decreased approximately 6% if we compare it with the occupancy rate from the same quarter in the previous year. With the large increase in the supplement for newly built supermarket, it has drawn the attention of investors to start their business in better locations, newly built, modern market. The recently-built supermarkets contain many facilities that are in the central of youth s interest. For example, cinema, Karaoke, and foreign food restaurants are making cilivized world for the people in Phnom Penh. If the supply carries on growing more and more bigger in the future, it will make the occupancy rate on retails remain limited since the demand is not equal to the amount of supply. This is the main reason why occupancy rate decreased in the first quarter in this Retail Price by Grade As we have mentioned, retail Grade A is the big supply in the market, so rental price of retail grade A slightly increases with range from 27$/ per sqm to 100$/ per sqm ( in TK Avenue). In this sign, we will see the new market of Parkson going to have the price similar to Aeon Mall s because these both retails are grade A and provide enough facilities and franchise shops. In the meantime, the retail Grade B price is going to increase unless there is update on some infrastructure and design in the buildings. Currently, the price of retail grade B is ranging from 20$/per sqm to 32$/per sqm, while the price of retail grade C is different from retail grade B s at about 26%, with range from 12$/ per sqm to 22$/ per sqm Occupancy Rate in Q1 by Retail Our study shows that there have been many retails that are fully occupied like Sorya Shopping Center, TK Avenue, Aeon Mall and Canadia Mall, whereas some other retails have the occupancy rate between 50% and 90% and most of them are grade B. The factor that pushes those retails to be fully occupied are the full facility in the building, the modernization, and decoration as well as the location. Page 06

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9 QUARTERLY REPORT FOR JAN-MAR Future Supply by Location The research of the supply of retails the in present time has shown that Khan Mean Chey is the only Khan with the most supply, which is followd by Khan Daun Penh, while Khan that has the less supply is Khan Toul Kork. But if we look at the trend of supply in the future, there will be change in supplying in which Khan Chamkarmorn, Daun Penh and Mean Chey will increase the supply orderly and Khan Chroy Chong Var has less supply if compared to the other Khans. The factor that push the increase in supplying is because of the emerging of condo construction, apartment, and borey constructed with its own retail stores for their residents Total Number of Store Each shopping center consists of a variety of market stores. Aeon Mall is one of the supermarkets which provides brand products, restaurant, fashion store, coffee shop, souvenir store, cinema, game center, concert, etc. However, some retails do not comprise all facilities, particularly without cinema or brand stores. Approximately, 3,500 stores have been occupied in the present quarter; among those, about 300 stores have been put in exchange. Also, there is still around 1,500 vacant stores Retail Supply by Years It has been over a decade now that heart of Phnom Penh-based Sorya shopping Center maintains its popurity for suppying goods to customers. Back in 2013, TK Avenue emerged as the most interesting boutique supermarket, which is easy for youth to enjoy shopping, fast food restaurant, and cinema and which is followed by Pencil Supermarket known as the popular fashion shopping for youth and the best supply for retail supermarket. Since its establishment on June 2014, Aeon mall has seemed to be the most attractive because it proposes very new and unique lifestyle towards young people in Cambodia by introducing variety of latest fashion brands ranging from Japanese brands to local sophisticated ones. Moreover, by the end of 2015 we will see new modern shopping center Parkson, the project of Malaysian investor. This new shopping center will make the size of the supply increase in the future. Beside this project, we will see many under construction retail projects such as The Bridge, Casa Meridian, Olympia Plaza, Moscow City, etc. By 2018, the total supply on retail market will have significantly increased to more than 900,000 sqm. មហ ន ប លធ ប នព ង ព នម ខរបស ខ ន វ ស យអចលន ព យ នច អន រណ គយល ម យ ន ង មហ ន យត អចលន ព Daiwa Real Estate Appraisal Co., LTD ល មហ ន ដ ធ ល ប ទ ២ សជប ន លព ទ ២៦ ម ថ ២០១៥ Bonna Realty Group has continued to maintain its leading status in real estate sector by signing partnerhsip agreement with Daiwa Real Estate Appraisal Co., LTD, the second biggest real estate company in Japan, on June 26, Page 08

10 CAMBODIA PROPERTY EXPO SEPTEMBER 2015 DIECC PHNOM PENH CAMBODIA S No.1 INTERNATIONAL PROPERTY & INVESTMENT EXPO SEPTEMBER 2015 DIECC, PHNOM PENH To Book Your Booth Contact: Mr. Veasna at veasna@ambexpo.com Tel: +(855) / +(855) Co-located with : 15 CAMBODIA BIGGEST INTERNATIONAL BUILDING & CONSTRUCTION INDUSTRY SHOW 5 Endorsed by : Hosted by : Supported by : Organised by : Ministry of Commerce Cambodia Cambodia Valuers & Estate Agents Association

11 HEAD OFFICE #126, Preah Norodom Blvd, Sangkat Tonle Bassac, Khan Chamkamorn, Phnom Penh Tel: (+855) / / Fax: (+855) info@bonnarealty.com.kh PREAH SIHANOUK BRANCH #99, St. Ek Reach, Sangkat 4, Preah Sihanouk Province, Cambodia Tel: (+855) / Fax: (+855) info@bonnarealty.com.kh SIEM REAP BRANCH National Road 6, Phum Khnar Thmei, Sangkat Chreav, Siem Reap City, Cambodia Tel: (+855) / / Fax: (+855) info@bonnarealty.com.kh BATTAMBANG BRANCH #102, Street No.3, Sangkat Svay Por, Battambang City, Cambodia Tel: (+855) Fax: (+855) info@bonnarealty.com.kh Q REPORT CALL TODAY