The Phnom Penh property market continued to see a broad rise in sales and rental values over the course of Q4 2015, with land values across the capital’s four central districts rising by an average of 8.4% over the course of the year.

While minimal supply was delivered over the course of Q4, with V-Trust Tower (erstwhile GT Tower) adding approximately 15,000 sq.m of office space, the market witnessed a notable volume of off-plan office sales launches, with a total of 85,000 sq.m, across 5 projects announced over the year. Grade B office rents appreciated by 6.2% over the course of 2015, outperforming increasingly dated Grade C stock and supported by demand from both new entrants and the expansion of established domestic occupiers. 

While no significant retail supply was delivered over the course of 2015, Q4 welcomed the arrival of Starbucks, located at Phnom Penh International Airport, in addition to a number of new fashion and accessories entrants.

A total of 689 condominium units, across 5 projects, were announced during Q4, bringing the total number of off-plan condominiums launched over the course of 2015 to 7,014 across 26 buildings.

Average condominium sales prices, across mid-range and high-end categories, broadly appreciated over 2015, with both existing and off-plan mid-range prices rising by 11.1% over the course of the year.

View the full report here.