PHNOM PENH

2021 MID-YEAR REVIEW

Redirecting and Restrategising for Recovery
06 July 2021

1
Contents

OVERVIEW

CONDOMINIUM

SERVICED APARTMENT

OFFICE MARKET

RETAIL MARKET
PART 1

OVERVIEW

3
PART 1: OVERVIEW

Imports of Construction Materials

H1 at a Glance 500 60%

USD (Millions)
400 40%

H1 2021 H-O-H 300

20%

0%
200
-20%
Total Covid-19 Cases 50,385* 100 -40%

0 -60%
Office Occupancy 73%

2021 (Apr-May)
2018 Q1

2018 Q2

2018 Q3

2018 Q4

2019 Q1

2019 Q2

2019 Q3

2019 Q4

2020 Q1

2020 Q2

2020 Q3

2020 Q4

2021 Q1
Prime Office Rents
(US$/sqm/month) $23.00
Value of Imports %Change
Source: GDCE, MEF, NBC

Retail Occupancy 72%

Approved Investment into Construction
6 1,600
Prime Retail Mall Rents

Number of Projects
5 1,400
$33.00 1,200

USD (Billions)
(US$/sqm/month) 4 1,000
3 800
2 600
Avg. High-End Condo Sales $2,802 1
400
200
- -

2021 (Apr-May)
2018 Q1

2018 Q2

2018 Q3

2018 Q4

2019 Q1

2019 Q2

2019 Q3

2019 Q4

2020 Q1

2020 Q2

2020 Q3

2020 Q4

2021 Q1
Prime Condo Rents
(US$/sqm/month) $12.35
* Data as of 30 June 2021, Our World in Data Construction Investment Value No. Projects

Source: CBRE Research, Q2 2021 Source: Ministry of Land Management, Urban Planning and Construction
© 2021 CBRE CAMBODIA 4 2021 MID-YEAR REVIEW
 PART 1: OVERVIEW

Covid’s Impact on Business

Phnom Penh Mobility Tracker Cambodia COVID-19 Cases and Vaccinations
20th Feb Incident Lockdown
80 800 120,000

60 700
100,000

Number of Vaccinations
40 600

Number of Cases
20 80,000
500
0 400 60,000
-20
300
-40 40,000
200
-60 20,000
100
-80
-100 0 0
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

Retail and Recreation Workplaces Transit Stations Residential Baseline New cases (smoothed) New vaccinations (smoothed)

Source: Google Mobility Tracker Source: Our World in Data

Percentage of people fully vaccinated compared to total population in the county

0.2% 2.5% 2.8% 4.2% 5.1% 7.4% 10% 12.7% 19.9% 36.7%
Source: Our World in Data

* Data as of 30 June 2021

© 2021 CBRE CAMBODIA 5 2021 MID-YEAR REVIEW

 PART 1: OVERVIEW

The Papers Cambodia logs new trends in exports, investments but garment will stay

Ministry of Commerce urges Sweden to open IKEA in Cambodia

Four Factories Worth Over US$27 million Approved for SHV & Svay Rieng

Commercial gold mining commences in Kingdom

PP-SHV Expressway to be completed ahead of schedule, first free ride
trial set for September 2022

First 300K barrels of crude oil ready to export

Phnom Penh garment workers, vendors go hungry as lockdown extended

Cambodia's oil dream dealt blow as driller files for liquidation

Cambodia's new COVID crisis clips growth prospects

Cambodia’s First Car Tire Factory Under Construction, Using Over

150,000 Tons Local Rubber in Next 5 Years Over 300,000 tourists recorded last month

Inter-Ministerial Committee established to accelerate New Draft Investment Law to be Submitted for Government
Sihanoukville Multi-Purpose SEZ Plan Approval Next Week
© 2021 CBRE CAMBODIA 6 2021 MID-YEAR REVIEW
Infrastructure
New Phnom Penh International Airport Sihanoukville's 34 roads renovation Morodok Techo National Stadium Phnom Penh’s Third Ring Road

40% 100% 100% 50%

Siem Reap's 38 roads renovation New Siem Reap International Airport Phnom Penh-Sihanoukville Expressway

30% 42% 51%

Source: Ministry of Public Works and Transport, Khmer times, Construction and Property News

© 2021 CBRE CAMBODIA 7 2021 MID-YEAR REVIEW

PART 2

CONDOMINIUM
MARKET

8
PART 2: CONDOMINIUM

Condominium Supply
Phnom Penh Condominium Supply By Grade

5
40,000 140%

35,000 120%

out of 17 30,000 100%

25,000 80%

projects expected in 2021 have been

completed 20,000 60%

Source: CBRE Research, Q2 2021 15,000 40%

10,000 20%
2021 Forecast Supply
5,000 0%

0 -20%

16% 7,909 Units

Affordable Mid-Range High-End % Change

Completed by H1 2021 2021 Pipeline

1,273 Units Completed H1 2021
Source: CBRE Research, Q2 2021 Source: CBRE Research, Q2 2021

© 2021 CBRE CAMBODIA 9 2021 MID-YEAR REVIEW

PART 2: CONDOMINIUM

Completions
H1COMPLETIONS H2 COMPLETIONS

Total Completions: 1,273 units Expected Completion: 6,636 Units

© 2021 CBRE CAMBODIA 10 2021 MID-YEAR REVIEW
 PART 2: CONDOMINIUM

Condominium Sales Prices & Rents

Average Quoting Rents PSM PM by Grade
Average Quoting Condominium Sale Prices USD/SQM (Q1 2019 - Q2 2021)
(Q1 2018 - Q2 2021)
$14.00 H-O-H
$3,600
$12.00
$10.00 2.69%
$8.00
$3,000
$6.00
H-O-H 0.73%

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021
$2,400 6.97%
6.19%
Afforabable Mid-Range High-End
Source: CBRE Research, Q2 2021
$1,800
7.10%
Sales Price by Grade (USD/SQM)
$4,500
$1,200 $4,000
0.28%
Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021
$3,500
Location
$3,000
$2,500 Primary
$2,000
Secondary
$1,500
Affordable Mid-Range High-End $1,000
Affordable Mid Range High End
Source: CBRE Research, Q2 2021 Source: CBRE Research, Q2 2021

© 2021 CBRE CAMBODIA 11 2021 MID-YEAR REVIEW

PART 3

SERVICED APARTMENT
MARKET

12
PART 3: SERVICED APARTMENT

Serviced Apartment Supply

Distribution by District
Existing & Future Serviced Apartment Supply
3%
(2014-2021F) 5%

4,000 45%
BKK
17%
3,500 40% Chamkarmon
Changes 48%
Daun Penh
3,000
35% in Supply
Chroy Changvar
30%
H1 2021 27% Toul Kork
2,500
Number of Units

25%
2,000
Source: CBRE Research, Q2 2021
20%
1,500
15%
0.0% 2021 Forecast Serviced Apartment Supply
1,000
10% H-O-H
500 5%

0 0% 0% 395 Units Expected

2014

2015

2016

2017

2018

2019

2020

2021F

Grade A Grade B % Change Completed by H1 2021 2021 Pipeline

Source: CBRE Research, Q2 2021 Source: CBRE Research, Q2 2021

© 2021 CBRE CAMBODIA 13 2021 MID-YEAR REVIEW

 PART 3: SERVICED APARTMENT

Completions
H1 COMPLETIONS H2 COMPLETIONS

No Completions

Total Completions: 0 units Expected Completions: 395 Units

© 2021 CBRE CAMBODIA 14 2021 MID-YEAR REVIEW
PART 3: SERVICED APARTMENT

Serviced Apartment Rents

Average Quoting Rents PSM PM by Grade
(H2 2019 - H1 2021) Phnom Penh Mobility Tracker Residential (2021)

$24.0
20th Feb Incident Lockdown
60
$22.0

50
$20.0 H-O-H
40
$18.0
5.2% 30

$16.0 6.7% 20

$14.0 10

0
$12.0

-10
$10.0 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
H2 2019 H1 2020 H2 2020 H1 2021

Grade A Grade B

Source: CBRE Research, Q2 2021 Source: Google Mobility Tracker

© 2021 CBRE CAMBODIA 15 2021 MID-YEAR REVIEW

 PART 4

OFFICE
MARKET

16 16
 PART 4: OFFICE MARKET

Office Supply
2021 Forecast Supply Phnom Penh Office Supply By Grade
900,000 100.0%

800,000 95.0%

90.0%
Centrally-owned
700,000
55% 117,017 SQM Occupancy
600,000
85.0% H1 2021
80.0%
500,000 72.7%
75.0%
73% 34,552 SQM 400,000
70.0%
300,000
65.0% -3.8%
200,000
H-O-H
60.0%
47% 82,465 SQM 100,000 55.0%

- 50.0%
Completed by H1 2021 2021 Pipeline

Total Supply Centrally Owned Only Strata Title Only Grade C Grade B Grade A Strata Occupancy
* Note: Forecasted occupancy rate for centrally owned office only by the end of 2021F.
Source: CBRE Research, Q2 2021 Source: CBRE Research, Q2 2021

© 2021 CBRE CAMBODIA 17 2021 MID-YEAR REVIEW

PART 4: OFFICE MARKET

Completions
H1 COMPLETIONS H2 COMPLETIONS

Total Completions: 64,358 sqm Expected Completions: 52,659 sqm

© 2021 CBRE CAMBODIA 18 2021 MID-YEAR REVIEW
 PART 4: OFFICE MARKET

Office Rents
Centrally Owned Office Quoting Rents
Upcoming Strata Sales Price (/sqm) GRR
$26.00

$24.00 H-O-H
Office
Average Rates $3,100 7.3%
$22.00
3.3% Quoting Rents
$20.00 (/sqm/month)
4.9%
$18.00
0.4%
$23.33
$16.00 * Note: Averages calculated from projects expected to complete in 2021 only, net of
3.8% service charges.
$14.00 Source: CBRE Research, Q2 2021

$12.00
Phnom Penh Workplaces Mobility Tracker (2021)
$10.00 20th Feb Incident Lockdown
0

2021 H1
2012

2013

2014

2015

2016

2017

2018

2019

2020
-25

(%)
-50

Grade B (CBD) Grade B (NCBD) -75

Grade C (CBD) Grade C (NCBD) -100

Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Source: CBRE Research, Q2 2021
Source: Google Mobility Tracker

© 2021 CBRE CAMBODIA 19 2021 MID-YEAR REVIEW

PART 5

RETAIL
MARKET

20
 PART 5: RETAIL MARKET

Retail Supply
Retail Supply Annually International Brand Movement
600,000 100% -10 0 10 20 30 40 50 60
Occupancy
90%
H1 2021 Q1 2019
80%
450,000 Q2 2019
70%
60%
71.5% Q3 2019
300,000 50% Q4 2019
40%
Q1 2020
30%
150,000 Q2 2020
20%
10% -4.6% Q3 2020
0 0% H-O-H Q4 2020
2016 2017 2018 2019 2020 2021F
Q1 2021
Shopping Mall Shopping Center Community Mall
Q2 2021
Retail Podium Others Occupancy
Source: CBRE Research, Q2 2021 Entry Expansion Exit

2021 Forecast Supply Source: CBRE Research, Q2 2021

37% 101,926 SQM New

Entrants
Completed by H1 2021 2021 Pipeline
* Note: Selection of new entrants
Source: CBRE Research, Q2 2021 Source: CBRE Research, Q2 2021
© 2021 CBRE CAMBODIA 21 2021 MID-YEAR REVIEW
PART 5: RETAIL MARKET

Completions
H1 COMPLETIONS H2 COMPLETIONS

Total Completions: 37,824 sqm Expected Completions: 64,102 sqm

© 2021 CBRE CAMBODIA 22 2021 MID-YEAR REVIEW
PART 5: RETAIL MARKET

Retail Rents
Average Retail Quoting Rents Average Retail Quoting Rents
$60
$34.00 $50
$40
$32.00
$30
H-O-H $27.56
$23.61
$30.00 $20 $21.58 $22.22
3.2% $10
$28.00
$-
10.0%
$26.00 Community Mall Retail Podium Shopping Mall Prime High Street
9.3% Rental Range Ave. GF & 1F
$24.00
0.7% Source: CBRE Research, Q2 2021
$22.00

$20.00 Phnom Penh Retails and Recreations Mobility Tracker (2021)

Q1 2018

Q2 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021
Q3 2018

Q4 2018

20th Feb Incident Lockdown

25
0
Prime Shopping Mall Prime Retail Podium -25

(%)
-50
Community Mall Prime High Street
-75
-100
* Exclude marketing and service charges
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Source: CBRE Research, Q2 2021
Source: Google Mobility Tracker

© 2021 CBRE CAMBODIA 23 2021 MID-YEAR REVIEW

 REVIEW OF FEARLESS FORECAST 2021
1. Only build now if you have a clear “pathway to 6. So is PropTech.
profit”.

2. Thing will get worse before they get better. 7. Young people will start travelling first.

3. Hold on to your tenants. Try engaging with them 8. Changing demographics will begin to change the
and understand their concerns. way developers build (and what they build).

4. WFH works in NYC, London and SG, but we have 9. Falling condo values and rents can be painful.
our doubts about PP.

5. ESG is mainstream. 10. Improving infrastructure is beginning to make a

difference to our lives.

© 2021 CBRE CAMBODIA 24 2021 MID-YEAR REVIEW

Contacts
Please visit our website at www.cbre.com.kh

To learn more about CBRE Research, or to access additional research

reports, please visit the Research Center at:

www.cbre.com.kh/research-center/research-cambodia/
James Hodge
Managing Director
james.hodge@cbre.com
+855 81 333 292

Lawrence Lennon
Associate Director,
Professional Services
lawrence.lennon@cbre.com
+84 91 448 88 67

Kinkesa Kim
Senior Manager,
Research & Consulting
kinkesa.kim@cbre.com © 2021 Advantage Property Services Co., Ltd, trading as CBRE Cambodia, part of the CBRE affiliate network. All materials
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