Phnom Penh Rental Market Report of May 2021, New Listings And Rent Double Up

Compass Cambodia report, In May, the epidemic situation in Phnom Penh began to improve, providing greater possibility for economic recovery. In the past three months, Cambodia's various fields have been impacted, and the rental market is no exception.

Earlier, the vacancy rate of housing supply increased due to the epidemic, and discounts and the reduction of prices became the conventional method on the property markets. In the rental market, however, many housing services failed to keep pace with the rates on the market and many owners abandoned the reduction of their prices and maintained a wait-and-see position on the market.

In fact, the rental market of Phnom Penh demonstrated signs of warming up in May with slight increases in supply and demand.

Phnom Penh's New Listings And Average Rent Double Up In May

According to the latest data of Compass Real Estate in May, due to the slight improvement of the epidemic situation and the heating up of the market, the intermediary companies began to resume their work. The number of new rental houses in Phnom Penh rose about 46% month on month. In terms of property types, apartments are still the main force in the rental market, accounting for 46%.

In terms of rent, the average rent in Phnom Penh in May was slightly higher than that in previous months, with the average rent of about $3500. At the same time, according to the rental market data from February to May, 1-2 bedrooms are dominant, with the price range of $1000-$5000, and the average price is about $1200.

Phnom Penh Rental Market Is Dominated By Apartments, With An Average Cost Of $734

As of May 31, 2021, Compass Real Estate Platform has listed 16698 rental units, with apartment houses accounting for around 60% of the total, followed by villas, townhouses, and warehouses.

Compass Real Estate has used the district distribution and price of various property types as the breakthrough point to conduct data analysis, so as to provide reference for landlords, tenants and investors.

Apartments account for the majority of the rental market in Phnom Penh. From the supply end, rental apartments are primarily dispersed in Chamkarmon District, 7 Makara District, Daun Penh District, and Toul Kork District, which are Phnom Penh's most affluent core regions. On the demand end, it is basically consistent with the supply of rental apartments on the platform, and these four regions are still the most visited.

In terms of apartment layout type, one-bedroom apartment accounts for 50%, with an average rent of $734/month; The average rent of two-bedroom is $1559/month, accounting for 31%; Three-bedroom accounts for 10%, with an average rent of $2054/month.

Demand For Rental Villa Is Increasing

People's perceptions of living environments have been considerably altered as a result of the epidemic's rise of living patterns such as home isolation and home office. After a lengthy period of living indoors, a roomy, pleasant, and high-quality living environment has emerged as the ideal living environment. In May, the proportion of villa listings climbed in the rental market, accounting for roughly 17% of the total rental format, as a result of the increased demand.

Rental villa supply is focused primarily in Chamkarmon District, Chbar Ampov District, Toul Kork District, and Sen Sok District; tenant demand is concentrated in Chamkarmon District, Chbar Ampov District, and Meanchey District. Among them, in Meanchey District, the supply of villa rental market is less than the demand, with fewer housing supply and more consultation.

In the Phnom Penh villa rental market, the average monthly rent is around $4143/month. Four and five rooms are the most common housing types, accounting for 25% and 24% of all houses, respectively.

The number of conventional homes has declined

As people's lifestyles evolve, new apartments and villas continue to dominate the market, while traditional residences' market share shrinks.

Townhouses accounted for roughly 4% of the overall rental market in Phnom Penh in May. Chamkarmon District and Sen Sok District have more townhouse availability on Compass Real Estate Platform, while demand in other locations such as Pou Senchey District, Chbar Ampov District, and 7 Makara District is also higher. In terms of rent, the average monthly rent for townhouses in Phnom Penh is around $1860, with 47.7% having a monthly cost of less than $1000.

The proportion of shophouses in the rental market is similar to that of townhouses, at around 3%. Chamkarmon District, Toul Kork District, and Daun Penh District all have more rental houses on the Compass Real Estate Platform. The attention of the platform supply is essentially the same as that of the demand. It's also worth mentioning that the shophouses in the Chroy Chongva District are particularly appealing. The average rent for a shophouse in Phnom Penh is $6084 a month, with 74.7% of the houses are below the average rent.

Demand For Rental Warehouses Increased As a Result Of The Outbreak

Apart from residential buildings, the outbreak had a significant impact on the commercial housing industry, which included hotels, offices, and shops. All forms of commercial operations ceased, especially during the city lockdown, and demand for commercial housing in the rental market was minimal, therefore the overall proportion was small.

Hotel properties account for about 3% of the rental market. On the supply end of Compass Real Estate, the supply of hotels in Chamkarmon District and Daun Penh District is relatively concentrated. On the demand end, the market has a certain demand for hotels in each district. Chamkarmon District, Toul Kork District, Daun Penh District and Sen Sok District are relatively in heat. In terms of rent, the average rent of Phnom Penh hotel is $27908/month.

As a result of the outbreak, some bulk and consumer products trade was halted, and market demand for warehouses increased rather than decreased. Sen Sok District and Pou Senchey District have more supply of warehouse on the supply end, which is roughly in line with platform rental warehouse supply on the demand end.

In the Compass Real Estate Platform supply end, office rooms and shops account for 2%. In Chamkarmon District, the supply and demand for office space and shops are mostly concentrated. The average rent for office rooms is $9295/month, while the average rent for shops is $5942/month.

Overall, even in the midst of the pandemic, the rental market in Phnom Penh continued to grow significantly in May.

Landlords, tenants, and investors can still have faith in the rental market in this situation. Many landlords have chosen to exit from the rental market temporarily in recent months due to dissatisfaction with rent or tenant circumstances. Rental demand will continue to climb when the outbreak is brought under control. If houses that were previously "difficult to rent" or "not rented at the ideal price" come back on the market, they may attract better tenants.

Chamkarmon District, 7 Makara District, Daun Penh District, and Toul Kork District, in particular, as the city's hub, are endowed with concentration. Whether it's an apartment, a residential building, a commercial building, an office building, or another type of commercial building, it all has high market prospects.

Source: Compass Cambodia original

Editor: Liu Yuan, Fangbuyi        Chief Editor: Sunnie         General in Chief/Executive Producer: Nicole        Translator: Malinda

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