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VTRUST Journal of Real Estate 17 August, 2016 Volume , Issue 5

VTRUST Appraisal Co., Ltd. | Tel: (+855)-23-220-098 / Email: vta@vtrustappraisal.com

Century 21 Mekong | Tel: (+855)23-966-577 / Email: info@c21mekong.com.kh

Market Summary

Sen Sok district (Khan in Khmer) has experienced a rapid

growth, especially in term of residential, commercial, and infra-

structure developments. Thus, land prices in the whole district

increased markedly within the last couple of years. By the end of

2013, average market price of land in Sen Sok was US$380 per

sqm. In the first half of 2016, average market price in the district

rose to US$690 per sqm, with average growth of 27 percent y-o-

y from 2013 to 2015. Nevertheless, land market prices across

Sen Sok district have stagnated since the beginning of 2016,

forcing Q1-to-Q2 2016 list price ratio to drop to 99 percent,

though minimally, as property sellers were testing the market at

which a reasonable market price should be met.

Tuol Kouk district, on the other hand, experienced a slight rise in

land price within the same period, from average market price of

US$2,150 per sqm in 2013 to US$ 2,530 per sqm in early 2016,

growing at 6 percent y-o-y within the tracked period. However,

across Tuol Kouk district, Q1-to-Q2 2016 list price ratio dropped

to 99 percent due to real estate market stagnancy since the start

of this year.

In sum, these two districts both of which lie northwest of the

central Phnom Penh have enjoyed a rapid growth in term of resi-

dential and commercial developments. The suburban Sen Sok

district, for example, has witnessed a noticeable pace of develop-

ments, especially mixed-use landed housing and infrastructure,

which gives rise to a change in the skyline and rapid surge in

land prices over the course of the previous three years. This

growth will continue its pace as developers foresee market opti-

mism over the next coming years.

Land Market Pricing

Tuol Kouk District

Over the last preceding decade, Northern fringes of Tuol Kouk

district was the first main destination for residential relocation

because of its available large portions of vacant land and a neigh-

borhood of the central parts of the capital. Land prices across the

district, therefore, started to surge ever since. In 2005, average

market price across the district was about US$1,100 per sqm,

with a threshold of US$450 per sqm along secondary streets to

US$1,900 per sqm along primary streets.

Early this year, average land market price across Toul Kouk rose

to US$2,530 per sqm, while some of the prime commercial

streets could fetch a market price as high as US$5,750 per sqm.

Over a decade, average growth rate of land prices in the district

was about 10 percent y-o-y, and during the last three years the

Tuol Kouk, Sen Sok Market Review H1 2016 As Tuol Kouk Growth Almost Reaches Top, New Prospects Flock to Sen Sok

Q2 2016

Average

Market Price

Tuol Kouk District $2,150 6% $2,530 Min Max Min Max Min Max Min Max

Boeng Kak Ti Muoy $1,210 17% $1,820 $1,010 $3,070 $2,130 $3,070 $1,450 $1,850 $1,010 $1,650

Boeng Kak Ti Pir $1,310 13% $1,830 $1,260 $3,000 $2,060 $3,000 $1,800 $2,060 $1,260 $1,930

Boeng Salang $2,210 2% $2,340 $1,220 $4,450 $2,730 $4,450 $1,750 $2,350 $1,220 $2,050

Phsar Daeum Kor $2,100 1% $2,190 $1,140 $4,450 $2,460 $4,450 $1,630 $2,200 $1,140 $1,910

Phsar Depou Ti Bei $3,000 7% $3,630 $1,470 $5,750 $5,100 $5,750 $2,110 $3,600 $1,470 $2,850

Phsar Depou Ti Muoy $2,420 2% $2,580 $1,300 $5,500 $3,360 $5,500 $1,870 $2,570 $1,300 $2,220

Phsar Depou Ti Pir $2,810 5% $3,230 $1,700 $5,500 $4,090 $5,500 $2,440 $2,570 $1,700 $2,500

Teuk Laak Ti Bei $2,000 6% $2,380 $1,160 $4,070 $3,050 $4,070 $1,670 $2,180 $1,160 $1,920

Teuk Laak Ti Muoy $2,000 7% $2,440 $1,240 $5,200 $3,220 $5,200 $1,780 $3,150 $1,240 $2,550

Tuek Laak Ti Pir $2,440 5% $2,840 $1,650 $5,200 $3,600 $5,200 $2,370 $3,100 $1,650 $2,600

Note: Avg = average; Min = minimum; Max = maximum; y-o-y = year on year; H1, H2 = first half, second half; Q1, Q2 = 1st quarter, 2nd quarter

Source: VTrust Appraisal Research Q2 2016

H2 2013

Average

Market Price

(per sqm)

Y-o-Y Growth

(H2 2013 - H2

2015)

TUOL KOUK LAND MARKET PRICE PER SQM, Q2 2016

Price Range, CommunePrice Range, Primary

Street (Arterial)

Price Range, Secondary

Street (Collector)

Price Range, Tertiary

Street (Local)

Legend: Central Phnom Penh: 1201: Chamkar Mon district; 1202: Daun Penh district; 1203: Prampir Meakkara district; 1204: Tuol Kouk district

2 VTRUST Journal of Real Estate| Volume , Issue 5 | Land Market Review: Tuol Kouk, Sen Sok Districts | Page 2

growth was about 6 percent.

Remarkable land price surge

was seen in Boeng Kak Ti Muoy and Boeng Kak Ti Pir, both of

which are Tuol Kouk’s northern communes adjacent to emerging

Phnom Penh Thmey of Sen Sok and densely-populated Tuol

Sangkae of Ruessei Kaev district. The former grew at 17 percent

y-o-y within the period from 2013 to 2015, and the latter, 13 per-

cent. The two communes’ higher growth in land market prices, if

compared to that of other communes in Tuol Kouk, was pushed

by two key factors. First, because of their relatively small market

price base (from a minimum of US$650 per sqm in the last three

years), a small price jump could see an enormous growth in y-o-y

rate. Second, their attractive, emerging locations have been ideal

for residential towns, high-rise developments, and commercial

establishments, all of which pushed market demand to rise. As a

result, buyers were willing to accept the offers and through this,

the market prices started to increase relatively more quickly over

the last three years.

On the other hand, many parts of the Tuol Kouk seemed almost

to reach their price caps, as many available development and es-

tablishment opportunities have now appeared elsewhere through-

out many of the peripheral parts of the district and its neighbor-

hoods, offering much lower prices and promising opportunities.

Such parts almost reaching land price caps are Phsar Depou, as

high as US$5,750 per sqm and Tuek L’ak, as high as US$5,200

per sqm.

Sen Sok District

Over the previous three years, property market prices across Sen

Sok witnessed a double digit growth, with 27% y-o-y from 2013

to 2015. Back to 2013, average land price across the district was

US$380 per sqm, and it grew to US$690 per sqm in the first half

2016.

Khmuonh, one of the four fastest growing communes (sangkat in

Khmer) of Sen Sok district, enjoyed a relative quick pace of resi-

dential town (such as Grand Phnom Penh International) and infra-

structure developments, with main streets such as Hanoi (St.

1019) almost finished this year and Tumnup Kop Srov Road (the

capital’s ring road) due to completion sometime soon. As a result,

average growth for land price in Khnuonh commune was 35 per-

cent y-o-y, from US$230 per sqm in 2013 to US$480 per sqm in

the first half of 2016, with market prices along main streets rang-

ing from US$300 per sqm to US$710 per sqm.

Krang Thnong, adjacent to Phnom Penh Thmey commune and a

quick access to the prominent Russian Boulevard, also witnessed

a double-digit growth in land prices, with an average of 29 per-

cent y-o-y, from an average of US$110 per sqm in 2013 to

US$210 per sqm in the first half of 2016 across the commune.

The enormous growth in land prices was driven mainly by resi-

dential potentials thanks to many available parcels of vacant land,

including residential plot land movements and ongoing town de-

velopment such as Borey Maha Sen Sok by Japanese developer

Creed Group.

Phnom Penh Thmey, adja-

cent to Boeng Kak Ti

Muoy and Boeng Kak Ti

Pir, the two prominent

communes among 10 of

Tuol Kouk district, also experienced a double-digit growth, hav-

ing stood high thanks to its development potentials and strategic

market position where several remarkable development projects

such as borey New World (La Sen Sok), second project of AEON

Mall, and borey Chip Mong Land, to name a few, have already

been pinned up on the map. Thus, land prices grew at average 19

percent y-o-y within 2013-2015 period, from an average of

US$530 per sqm in 2013 to US$830 per sqm in the first half of

2016. Remarkable potentials in Phnom Penh Thmey commune

have been also seen after the completion of main infrastructure,

for example, Oknha Mong Reththy and Hanoi Street.

Market Performance

Tuol Kouk District

A central zone of the capital, Tuol Kouk district has experienced

a tremendous change in its skyline and infrastructure, which led

to an increase of property demand as well as prices across the

district over the last three years. Yet, average SP-to-LP ratio

across property market in Tuol Kouk was 95 percent in 2015,

while average original-to-last list price ratio dropped slightly to 99

percent Q1-on-Q2 2016.

Low pricing ratios were noticeable in Phsar Depou Ti Muoy

commune, where SP-to-LP ratio went down to 90 percent, lower

than those in any other communes across Tuol Kouk district. The

low pricing ratios in the two communes could be dragged down

by the disruption of Techno Flyover construction process that

affected on profitability of prime business spots along Russian

Boulevard and its surroundings, thus resulting in less-commercial

options for buyers to seriously consider the properties over there.

Legend

1208: Khan Sen Sok (district), with subdivisions (commune or sangkat): 01: Sangkat Phnom Penh Thmey 02: Sangkat Tuek Thla 03: Sangkat Khmuonh 04: Sangkat Krang Thnong

Note: Khan Tuol Kouk (1204) is an adjacent district to Khan Sen Sok

Legend

1204: Khan Tuol Kouk (district), with subdivisions (commune or sangkat): 01: Sangkat Phsar Depou Ti Muoy 02: Sangkat Phsar Depou Ti Pir 03: Sangkat Phsar Depou Ti Bei 04: Sangkat Tuek L’ak Ti Muoy 05: Sangkat Tuek L’ak Ti Pir 06: Sangkat Tuek L’ak Ti Bei 07: Sangkat Boeng Kak Ti Muoy 08: Sangkat Boeng Kak Ti Pir 09: Sangkat Phsar Daeum Kor 10: Sangkat Boeng Salang

Q2 2 0 16

Ave ra ge

Ma rke t Pric e

Se n Sok Distric t $ 3 8 0 2 7 % $ 6 9 0 Min Max Resident Zone Shophouse Zone Min Max Min Max Min Max

Khmuonh $230 35% $ 4 8 0 $70 $930 $450 - $700 $650 - $930 $300 $710 $90 $280 $70 $180

Krang Thnong $110 29% $ 2 10 $50 $770 $450 - $600 $550 - $770 $210 $470 $70 $140 $50 $100

Phnom Penh Thmey $530 19% $ 8 3 0 $90 $1,850 $540 - $1,500 $1,100 - $1,850 $540 $1,600 $120 $540 $90 $330

Tuek Thla $1,050 6% $ 1,2 5 0 $420 $3,550 $650 - $1,750 $1,200 - $2200 $1,400 $3,550 $550 $840 $420 $710

Source: VTrust Appraisal Research, H1 2016

H2 2013

Average

Market Price

(per sqm)

Y- o- Y

Growth (H2

2013 - H2

2015)

SEN SOK LAND MARKET PRICE PER SQM, Q2 2016

Pric e Ra nge , Commune Pric e Ra nge , Townhouse Zone

Pric e Ra nge ,

Prima ry Stre e t

(Arte ria l)

Pric e Ra nge ,

Se c onda ry Stre e t

(Colle c tor)

Pric e Ra nge ,

Te rtia ry S tre e t

(Loc a l)

Note: Avg = average; Min = minimum; Max = maximum; y-o-y = year on year; H1, H2 = first half, second half; Q1, Q2 = 1st quarter, 2nd quarter

3 VTRUST Journal of Real Estate| Volume , Issue 5 | Land Market Review: Tuol Kouk, Sen Sok Districts | Page 3

Sen Sok District

Despite enjoying a significant growth in most parts of the districts

over the course of the previous three years, Sen Sok’s property

market heat has been slightly cooled down since early 2016 due

to overall slowdown in property transactions. Given that average

sale-to-list price ratio (SP-to-LP) was 93 percent in 2015, average

achieved sale rate across the district was 7 percent below the orig-

inal list prices, although H1-on-H2 2015 list price ratio (LP) rose

to 101 percent. However, during the first half of 2016, average

original-to-last list price ratio was 99 percent Q1-on-Q2.

The fact that pricing ratios, typically sale price, went down to 93

percent across property market in Sen Sok district means there

were many available properties, especially numerous unoccupied

homes and vacant parcels of land, and therefore buyers have more

power to negotiate for a lower price. Nevertheless, that average

original-to-last list price ratio went down to 99 percent was a sign

that many of sellers were adapting their asking prices to cope

with less aggressive market demand during the first half of 2016.

Outlooks and Trends

With an organic trend of relocation from the central city to subur-

ban and peripheral areas of the capital in a bid to cope with rapid

land price growth, accelerating traffic pressure, and increasingly

overcrowded city dwellers, a number of people have started to

move out to several suburban parts where they form new towns

and communities, remarkably since the five years, and Sen Sok

district is no exception.

Major development trends have been noticeable across Sen Sok,

especially its Phnom Penh Thmey commune, which is situated

northwest of its neighboring Boeng Kak Ti Muoy and Boeng Kak

Ti Pir of Tuol Kouk district. Today, throughout many parts of

Phnom Penh Thmey are situated many of finished housing pro-

jects such as (1) two of Borey Peng Hout projects the Star Emer-

ald and the Star Quarteria, all of which are along Oknha Mong

Reththy Street (1928 St.), (2) two of Borey New World projects,

one of which is located a hundred meters off Mong Reththy Street

and another is on Oknha Try Heng Street (2011 St.).

Another ongoing Borey New World (La Sen Sok) on Oknha

Mong Reththy Street has been almost finished, whereas only its

community shopping mall remains under construction. Further,

Borey Park Land (Sen Sok) along the same street is due to com-

pletion sometime next year.

More importantly, the second project of AEON Mall by Japanese

developers has been pinned on the map in the most promising

zone, immediately adjacent to Borey New World (La Sen Sok)

and less than 800-meter-radius ring of Camko City (southeast),

Borey Angkor Phnom Penh (north), Borey Park Land

(southwest), and Borey Peng Huot (south). These factors have

brought about more demand for the area, including housing units

and parcels of land, thus pushing prices to hike rapidly.

Phnom Penh Thmey is a popular location for buying a first home,

being voted by 20 percent of the surveyed prospective buyers

(conducted by VTrust Appraisal), ahead of other areas such as

Chrouy Changva (16 percent), Stueng Meanchey (11 percent),

Toul Kouk (11 percent), unspecified areas (17 percent), and other

areas combined (25 percent).

Dec-2013 Street View: near access to Borey New World (La Sen Sok), on Mong Reththy Street (1928 St.), Phnom Penh Thmey commune, Sen Sok district. Photo: Google Satellite Image

Aug-2016 Street View: near access to Borey New World (La Sen Sok), on Mong Reththy Street (1928 St.), Phnom Penh Thmey commune, Sen Sok district. Photo: VTrust Appraisal

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Contact VTrust Appraisal Co., Ltd. Parkway Square, Mao Tse Tong Blvd., Phnom Penh, Cambodia Contact: (+855)23-220-098 Email: vta@vtrustappraisal.com Website: www.vtrustappraisal.com Century 21 Mekong Parkway Square, Mao Tse Tong Blvd., Phnom Penh, Cambodia Contact: (+855)23-966-577 Email: info@c21mekong.com.kh Website: www.c21mekong.com.kh

Author Hoem Seiha (Mr.) Director of Research | VTrust Appraisal Co., Ltd. Tel: +855-23-220-098 | H/p: +855-12-699-553 Email: seiha@vtrustappraisal.com Website: www.vtrustappraisal.com Advisory Research Committee Sim Hoy Chhoung | CEO | VTrust Appraisal Chrek Soknim | CEO | Century 21 Mekong In Sitha | Business Development | VTrust Apprais-al Tarek Genena | Consultant | VTrust Appraisal Phin Sopthea |Valuation Manager | VTrust Ap-praisal

17 August, 2016 Volume , Issue 5

A Publication from In Partnership with

Disclaimer VTrust Appraisal Co., Ltd. informs that the information, including figures, statistics and opinions, is one gained from resources deemed reliable and expressed solely by the authors of this publication but does not necessarily reflect the viewpoints of VTrust Appraisal Co., Ltd. Therefore, VTrust Appraisal does not guarantee or bear any responsibility for any failures pertaining to the information contained herein.

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