CONTENT

Title

Page

1.

LAND MARKET PRICE

01

1.1.

AVERAGE LAND MARKET PRICE IN CBD FROM 2007 TO Q1 2016

01

1.2.

AVERAGE LAND MARKET PRICE IN OUTSKIRT FROM 2010 TO Q1 2016

02

1.3.

AVERAGE LAND MARKET PRICE IN CBD IN Q1 2016

02

1.4.

AVERAGE LAND MARKET PRICE IN OUTSKIRT IN Q1 2016

03

2.

OFFICE MARKET IN Q1 2016

04

2.1.

OFFICE SPACE IN PHNOM PENH

04

2.2.

SUPPLY BY LOCATION

04

2.3.

OFFICE SUPPLY BY GRADE

05

2.4.

SUPPLY GROWTH

05

2.5.

OFFICE SPACE STATUS

06

2.6.

TYPE OF PROJECT

06

2.7.

TYPE OF OFFICE BUILDING

07

2.8.

TAKE UP RATE

07

2.9.

RENTAL PRICE BY GRADE

08

2.10. MANAGEMENT FEE

08

3.

RETAIL MARKET IN Q1 2016

09

3.1.

RETAIL IN PHNOM PENH

09

3.2.

RETAIL STATUS

09

3.3.

RETAIL SUPPLY BY LOCATION

10

3.4.

SUPPLY GROWTH

10

3.5.

RETAIL SUPPLY BY GRADE

11

3.6.

RENTAL PRICE IN SQ.M

11

3.7.

RETAIL TAKE UP RATE

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1. LAND MARKET PRICE

1.1. AVERAGE LAND MARKET PRICE IN CBD FROM 2007 TO Q1 2016
The unchanged price in CBD has been shown during the
previous year continuing to 1st quarter of 2016. Before
and after the potential era (2007 and 2009) of economic
growth, Cambodian land price appeared slightly various in
opposed from 2008 up when economic status bust the increase to 61% in commercial area and to 50% in residential
area. Continuously, there had a recovered inflation since
2010 to 2015 the average annual growth rate is 10% for
both commercial area residential area. The shown average
price nearly a decade came up with a total raise of 19% in
commercial area and 13% in residential area. At the end of
Q1st of 2016, the land market price remained level through
2015 period. The main reason leading to this untouched
price is that some MFI and banks has planned to decrease
loaning target according to National Bank of Cambodias
alert. In 2008, to underline, the escalate number of foreigner directed investors from Korea, China and other countries, has significantly affected the market price in Phnom
Penh as well as Cambodia. In contrast, during 2009 with the
global economic recession affected the price of property in
Cambodia as a whole. The history has happened again in
Q1 2016 which stood up the Land Market Price fairly higher
than 2008, yet its level has been kept familiar with 2015.

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1.2. AVERAGE LAND MARKET PRICE IN OUTSKIRT FROM 2010 TO

Q1 2016
Not much different from CBD, the land market price
in outskirt stayed equivalent compared to last year.
Due to more foreign direct investment, policitcal
stablity, policy of investment incentive, opened sky
policy, potential development, ect., the land market
since 2010 has dramatically grown with a percetage
of 67% in commercial area and 61% in residential
area. Notibaly, it is presented every years with nominal increase unterruptedly. For statistic, in 2011, the
gap between commercial and residential area was
13% to 17%. Next, the 2012 price was 14% leg-up
in both area. As in 2013, it was estimated the same
area by more 12% grown. After, 2014 land market
was still added 6%. The increase of 2015 was somewhat shown 5% only in both area. Last but not least, it had
no even small scale counted of issue in 2016 since the price of 2015 was on the peak.

1.3. AVERAGE LAND MARKET PRICE IN CBD IN Q1 2016

No analysis evaluated Land Market to increase
since late updated price of 2015. In the 1st quarter
of 2016, the price of property in the prime location
of Phnom Penh for commercial area remain unchanged comparing to Q4 2015.
To remind that the CBD is bordered four main
Khans (District), Daun Penh, Chamkamorn, Toul
Kork and 7Makara. If compared to the Q1 of 2016,
the land market price in average is no different
from late of 2015. In addition, the highest price still
holds on in 7Makara and Daun Penh with inconsiderable difference for instance: in percentage,
7Makara is 2% higher than Daun Penh in residential area and Daun Penh is 1% less than 7Makara in commercial
area while Toul Kork indicates the lowest price of 41% less than 7Makara for residential area and 25% less than
of that in commercial area. Lastly, Chamkamorn is recorded with 36% below Daun Penh in residential area and
15% less than that of commercial area. In short, by Q1 2016, the land market price is remaining stable due to less
transaction in the market and the price was already reached the top

02

1.4. AVERAGE LAND MARKET PRICE IN OUTSKIRT IN Q1 2016

Mean Chey still leads the summit of land market price. In Comparing among all outskirt district of Phnom Penh
showed that the average land market price in Mean Chey District for the commercial area is around USD 1,200/
sqm whereas the residential area is USD 460/sqm. Based on the exact shown number, it is the top out of 7 other
areas since Boeng Tumpon and Stoeng Mean Chey Commune is being developed with Borey, residency and especially industrial zoon. The Price for residency in Dangkor District is at the bottom of other Khan, USD 45/sqm
in average, and for commerce is around USD 130/sqm. Also, the factor pushing the price seems to have been
written by many big vacant land
lots far from main roads and the
transaction is below in average.
Noticeably, Prek Pnov has made
a slightly stood-up over Dangkor due to the development of
Ly Yong Phat satellite city and
it has little commune and many
of that in this area are located
along main road like National
Road #5 and Tumnup Kob Srov
Street. Its price is 29% over
Dangkor for residential area and
50% of that for commercial area.

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2. OFFICE MARKET IN Q1 2016

2.1. OFFICE SPACE IN PHNOM PENH
economic stimulus. Economic growth in Asia would
spread out business launching as well as office space
transaction. This drove the terms of trade to historical
highs in Cambodia at where an influx of companies
and investors looking to get their businesses located.

7% appears the boost of Office Space until end of

2016. According to self-credit of Bonna Realty Group,
Phnom Penh currently has about 44 operating office
buildings equal around 320,000 sqm of net lettable
area. ASEAN integration has led with greater levels of

2.2. SUPPLY BY LOCATION

Obviously, Chamkamorn ends up with a huge
supply every year due for the completion one
after another timely. The highest supply still remains in Chamkamorn District with approximately
131,000sqm of net lettable area (NLA); predictably, it will be around 202,000sqm due to under
construction investment in this district by 2019,
estimated 55% of increasing. it is highly potential
for national and international companies, organization, embassy, condominium, apartment, retail
store and hotels. On the other hand, the following average of supplies are Daun Penh, 7Makara,
Toul Kork, Sen Sok, Mean Chey and Chroy Chong
Var, respectively. In contrast, Chroy Chong Var, the
only one Khan by which Chroy Chong Var Bridge
linked, is far from the city center and office building investment attraction.

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2.3. OFFICE SUPPLY BY GRADE

By 2019 an extreme grade A office space will be born in Cambodia while grade B and C will stay behind. Nowadays, Grade B is dominating the office market in Phnom Penh, whereas its supply will be slightly increased,
7%, from 224,000sqm to 240,000sqm, more or less. Furthermore, grade C is 6,500sqm and the moderate prediction of grade C will be 37% increased, in net lettable space of 8,500sqm. The business and working standard
has been influenced and improved by
foreign, modern and well-off investors,
which drags requirement fulfillment to
Cambodia. Grade A is presently about
81,400sqm, yet it surprisingly comes
to the prediction behind this fulfillment that the upsurge will be closely
181,700sqm, in percentage of 123. This
number is stocked from coming single
and mix-used purpose projects such
as East Commercial Centre, Exchange
Square, The Bridge, The Peak, TK Royal One, The Gateway, Diamond Twin
Tower, etc., assuming those under construction complete as scheduled.

2.4. SUPPLY GROWTH

Future supply of office space sees the highest in 2017. Located in developing country, Cambodias Phnom Penh
has become the investment mark due for many grade projects started. The 2016 supply is closely to 23,000sqm,
59% bellowed 2015 while less project will be completed in this year. Supposing that some construction complete as scheduled in 2017, the office space stockpile will be 85,000sqm which significantly 286% faces the top,
comparing to 2016. For instance, those predictable completed projects sometimes after 2017 are Exchange
Square, Casa Meridian, TK Royal One and Olympia City. Ideally,
upon those completions might
urge project management firms to
review rental prices in preventing
isolation while office space market increases its options. By 2019,
due to less project straight up and
sight of planning projects, average growth will vigorously subdue
to 3,750sqm more or less, 95% of
abatement. Once again, the sharp
point in 2017 could improve the
workplace environment and business standard.

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2.5. OFFICE SPACE STATUS

Mostly, it is noticed by Bonna Realty Group that Phnom
Penh has around 53 office buildings. Operating building in the market is 73% equal nearly 314,000sqm.
New projects have been being constructed and will
have finished between 2017 and 2018; as a result, office space under construction still remains process
with new supply in the future which cannot be maintaining the same rental price.

2.6. TYPE OF PROJECT

Office space is commonly rent out while SOHO is the
first and new concept design presented by The Bridge,
grade A mix-used project. SOHO, Small Office Home
Office, is a type of unit that can be both working and
living. The number of office space currently shares
around 328,800sqm. Also, SOHO serves almost 2,150
units equal 96,355sqm comprised in mix-used projects
in Cambodia. After the successful of The Bridge Project,
weve found that, some projects mix-used development
start to boom in SOHO typed like; East Commercial Center, Diamond Twin Tower, Olympia Tower etc.

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2.7. TYPE OF OFFICE BUILDING

After many grade A projects launching, Phnom Penh is rich
of high buildings under construction. The 31 stories up
building are presenting 53% in proximity of 225,400sqm.
The 21-30 stories building come up with 31% equal
131,400sqm while 11-20 and 1-10 stories building involve
the same 8% shown 35,000sqm and 34,300sqm.

2.8. TAKE UP RATE

Occupancy rate has met a slightly recovery again after a drop in Q1 2015. In Q1 2014 report of Bonna Realty
Group, the occupancy rate reached 93% while some office buildings were under construction. The most important reason behind this decreasing is the present of grade B jumping and some companies relocation. Once the
supply grown at the same period of 2015, the average rents had decreased its percentage to 83% in case of some
office buildings added more space to
the market; for example, Vattanac
Tower brought 34,000sqm after its inauguration in 2014 and VTrust Tower,
formally known as GT Tower shared
around 14,000sqm in 2015. Although
having supplied more available space
to the market in Q1 2016, the take-up
rate is able to crimp to 85%, which
means a marginal increase happened
2% comparing to the same pace last
year. Despite rising supply, businesses are slowly beginning to rent more
office space.

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2.9. RENTAL PRICE BY GRADE

As the Cambodian office building improves, rent prices for office space are on the drop. The flash analysis
brought out the cost of renting in Phnom Penh increases 5% to 10%. Nationally, the Grade A buildings
are rent out from $22/sqm to $38/sqm per month, minor-shaken price compared to the same pace in 2015.
Despite of grade A, grade B and C are put in a low
range of price to fight through in the market. Grade
B average prices ranges between $6/sqm to 25$/
sqm, yet Q1 2015 was $12/sqm to $30/sqm. Grade C
decreased to $5.5/sqm to $11/sqm, yet Q1 2015 was
$10/sqm to $15/sqm. To underline that rental price is
proposed regarding to level, size of being occupied, and orientation. The uncover reason
is the supply growth of office buildings, which
leads to a very challenging offer. Surveys reveal
that some developers of brand new projects
want their buildings to serve in this competitive
market a better occupancy degree rather than
asking higher rental price which could probably
become vacant.

2.10. MANAGEMENT FEE

Normally, management fee is plus with rental price,
charging for maintenance service, cleaning, security etc. For Q1 2016 overview, grade A is added from
$4.5 to $5 per month; grade B ranges between $2 to
$4 while grade C requires only $1 to $2 per month; for
some grade C building, management fee is already included with rental fee.

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3. RETAIL MARKET IN Q1 2016

3.1. RETAIL IN PHNOM PENH
Phnom Penhs retail landscape is growing both under mixused and single purpose projects. Sorya Shopping Center,
the first succeed supply in 2003, and other modern malls
around Phnom Penh had become under high-quality retail spaces and met a rising customer spending. Consequently, this jungle has brought gaps out developers to
invest on new projects. Based on a recent local survey,
there are around 28 Retail Store, 14 are under construction, which retailed itself and comprised in mix-used
projects. As current seen, a Japan developers Aeon Mall
is the biggest supply on the retail market and this base
Cambodian well-known supermarket providing many
famous brands such as, 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. Most of retailers
are Japan, China, Thailand, Singapore, and Western countries; therefore, rapidly, the new trend of Retail sector will be increasing. The future supply comprised
in the condominium and mix-used building like;
The Gateway, The Bridge, D.I Riviera, Olympia City,
Peng Houth (Polaris), Exchang Squre, Diamond
One, Casa Meridian, New World (La Sen Sok) etc.
and the Malaysias PakSon Store, new retail suppler
in Cambodia, planned to open 3 centers in a name
(along Russian Confederation, In front of Phnom
Penh International Airport and The Bridge Building). The steady growth by 2019 predictably reaches 850,000sqm, 135% comparing to 2015.

3.2. RETAIL STATUS

Retail stock has become interesting if glancing to under construction statistic. Currently, Phnom Penh has 14 operating serve totally 370,000sqm
approximately. Once again, the under construction projects will add
490,000sqm in percentage of 55% equal around 14projects. With
interior crisis and developers financial health, some projects have been
forced to pause construction process. As scheduled, most of under constructions will meet the completion in 2018. Regarding to Bonna Realty
Group Annual Report 2015, grade B+ led the retail market while grade A
is moving ahead over

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3.3. RETAIL SUPPLY BY LOCATION

7Makara grows larger in the majority of other
Khans while total supply is still behind Chamkarmorn. The most notable growth is shown
by many under construction mix-used projects
based in this Khan which numbers approximately 189,000sqm or 849% upper if compared to the
current space. For instance, it is shared by Skyline
and Olympia City etc. However, the overall stock
of retail market remains down-level Chamkarmorn due to the amount supply available in this
location have become remarkable since decades,
but the Khan, where current supply is 90,000sqm
and 189,000sqm of future retail, offers lesser
chance of project investments than 7Makara.
As a result, instead due to of that investors has
focused on other Khans of CBD like Toul Kork (Boeng Kork), 7Makara and Daun Penh. Daun Penhs Exchange
Square made marginally 13% increase equal 110,640sqm while Sen Sok and Toul Kork reach 152,800sqm, added 460% and 45,722sqm, added 424%. The factor that push the increasing is the raising of condo construction,
apartment, and borey comprised with retail store at least.

3.4. SUPPLY GROWTH

Retail industry to generate strongest
turbulent in two years. Driven by
strong income growth, changing lifestyles, favorable demographic patterns, Cambodian retail is expanding
at a rapid pace. Having many under
construction projects, Phnom Penh
is expected to achieve a peak of retail supply in 2017, assuming those
projects complete as calendared.
Sometime after that the increase
will have met a turndown regarding
to less completed projects as prediction. Phnom Penh has been busy
with many retail itself and comprised
in mix-used projects under construction such as The bridge, Casa Meridian, Olympia Plaza, The Gateway, Aeon Mall 2, Parkson, D.I Rivera, Skyline, Sky
31 etc. Estimation to 2019, the come up supply on retail market will significantly crimp to around 850,000sqm.

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3.5. RETAIL SUPPLY BY GRADE

Grade A retail to the highest due to high standard
foreign markets and mix-used projects. Together,
the growth of grade A building (The Bridge, The
Peak, Olympia City, D.I Rivera, Diamond Twin Tower, Skyline Mall, etc) automatically presents retail
stores at a few floors down the buildings while
many under construction retail projects itself also
classify in grade A as well. Also, international markets have launched projects such as end of 2016
completed Parkson Store, Aeon Mall 2 etc. As a result, grade A can sharply reach about 577,100sqm
in the future, 508% increasing. On the other hand,
other kinds of grade (B+, B and C) remain level. Grade
B+ is 80,000sqm, grade B 117,960sqm and grade C
75,600sqm since those grades do not provide enough
facilities and entertainments such as Cinema, Brand
shop, or franchise restaurant. Another reason said that
the new trend and modernization of Cambodian people has turned interests to shopping and walking at
grade A market.

3.6. RENTAL PRICE IN SQ.M

Generally, rental price cannot maintain the same during
coming vacant goes up. The rental review had occurred after the increase came. Grade A has nominal decreased which
ranges from $25 to $100 per month. A solid rental price per
square meter is adapted by Cambodian malls; additionally, after a flash studies conducted by Bonna Realty Group,
some grade A retail (Aeon Mall, Vattanace Tower etc), the
rental price is commanded to share by 15% of tenants income. Research shown that rental price has been reputed
up to a considerate price lower than last year. Grade B+ is
between $22 to $40, grade B is rent out for $12 to $30 and
grade C is leasing out from $7 to S16 per month.

3.7. RETAIL TAKE UP RATE

Occupancy rate is likely to move 8% up compared to the same period last year. Bonna Realty
Group has found some new little vacant in many
operating supermarkets such as Sorya and Aeon
Mall. This increase is due to rental price decrease
and building renovation such as Paragon, Sorya
supermarket and Golden Sorya Mall. This renovation has attracted tenants to move in or expand
owning store.

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