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VTRUST Journal of Real Estate 19 October, 2016 Volume 1, Issue 6

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

Introduction

Covering the majority of the western part of the capital, Pou Senchey district (locally called

‘khan Pou Senchey’ or Khmer:

ខណ្ឌ ពោសែនជ័យ) is currently the

largest of all 12 districts of Phnom Penh and home to about

184,000 residents. As of today,

Pou Senchey is administrative-

ly subdivided into 10 com-munes (locally called ‘sangkat’

or Khmer: ែង្កា ត់), namely Boeng Thum, Chaom Chau, Kakab, Kam-

boul, Kantaok, Ovlaok, Phleung Chheh Roteh, Samraong Kraom,

Snao, and Trapeang Krasang.

It shares borders with four other districts, namely Preaek Phnov district to the north, Sen Sok and Meanchey to the east, and

Dangkao to the south.

Market Summary

Pou Senchey, since the last decade, has seen a rapid pace of devel-opment, especially in the realm of residential, commercial, and in-dustrial sub-sectors, leading to a considerable land price surge across

the district. Observed within the period of the past three years, the

district experienced an average annual growth of 31 percent in land

prices, from US$110 p.sqm. in 2013, when averaged across the whole district, to US$170 p.sqm. in Q3 2016. Within those three

years, 2014 and 2015 marked the strongest growth for land prices,

yet during the course of three quarters of 2016 the prices were slug-gish to move upward due to the situation that overall real estate mar-

ket has cooled down steadily since late 2015.

Fortunately, recent housing and plot land subdivision market stimuli practiced by many of developers have been seen to bolster the mar-

ket growth again, albeit slowly, and this trend will continue helping boost market demand and thus keep real estate prices from going

down negatively.

Land Market and Pricing

In general, market prices for land across Pou Senchey district grew 31 percent y-o-y since 2013 until 2015, while the two bustling com-

munes of Chaom Chau and Kakab grew about or less than 10 per-cent y-o-y because prices in the two communes were already high

compared to the rest of Pou Senchey’s other communes.

In term of land values and major business hubs, however, Kakab and

Chaom Chau stand out from the rest thanks to their strategic loca-

tions as well as coverage of prime streets ideal for business positions.

Kakab commune is immediately adjacent to Tuek Thla of Sen Sok

district, while Chaom Chau commune is westwards next to Kakab.

Pou Senchey Market Review Q3 2016 As Urban Expands Rapidly, Chaom Chau, Kakab See Huge Residential, Industrial Growth

2013 H2

Average

Market P rice

(P .SQM)

Y-O-Y

Average

P rice Gro wth

(2013-2015)

2 0 16 Q3

A v e ra g e

M a rke t P ric e

(P .S QM )

Q-o -Q

Average

P rice Gro wth

(2016Q1-Q3)

PO U SENCHEY $110 31% $ 17 0 - 0.2% Min Ma x Indus tria l Re s ide ntia l S hophouse Min Ma x Min Ma x

Boeng Thum $30 22% $ 5 0 - 0.3% $13 $90 $50 - $70 $30 - $50 n/a n/a n/a $13 $90

Chaom Chau $320 8% $ 4 0 0 - 0.2% $35 $1,800 $60 - $450 $150 - $800 $400 - $1,800 $450 $1,800 $100 $450

Kakab $380 10% $ 4 9 0 - 0.8% $70 $2,080 $65 - $450 $170 - $800 $450 - $2,080 $620 $2,080 $150 $620

Kamboul $50 47% $ 12 0 0.0% $23 $360 $50 - $100 $40 - $50 n/a $163 $360 $23 $100

Kantaok $120 8% $ 15 0 - 0.3% $12 $430 $50 - $100 $40 - $50 n/a $190 $430 $12 $100

O vlaok $30 33% $ 6 0 0.7% $12 $80 n/a $25 - $50 n/a n/a n/a $12 $80

Phleung Chheh Roteh $70 19% $ 110 0.0% $15 $200 $40 - $70 $20 - $50 n/a $180 $200 $15 $80

Samraong Kraom $45 78% $ 15 0 0.3% $30 $430 $70 - $300 $160 - $250 n/a $320 $430 $30 $80

Snao $25 47% $ 6 0 - 1.0% $20 $130 n/a $25 - $40 n/a n/a n/a $20 $130

Trapeang Krasang $50 40% $ 110 0.0% $35 $250 $130 - $ 220 $160 - $250 n/a $150 $250 $35 $80

H2 2013

INDICATIVE LAND MARKET PRICE PER SQM, POU SENCHEY DISTRICT

No te : Avg = ave rage ; Min = minimum; Max = maximum; y- o- y = ye ar on ye ar; H1, H2 = firs t half, se c ond half; Q1, Q2 , Q3 = 1s t quarte r, 2nd quarte r, third quarte r; P.S QM = pe r square me te r

S o u rc e : VTrus t Appraisal Re se arc h De partme nt

Q3 2016

P rice Range P .SQM,

Stra tified by Co mmuneP rice Range P .SQM, Stra tified by Zo ne

P rice Range P .SQM,

P rimary Stree t

P rice Range P .SQM,

Seco ndary Stree t

Legend 1209: Khan Pou Senchey (district), with subdivisions: A: Sangkat Ovlaok B: Sangkat Snao C: Sangkat Samraong Kraom D: Sangkat Kamboul E: Sangkat Trapeang Krasang F: Sangkat Kakab G: Sangkat Kantaok H: Sangkat Chaom Chau I: Sangkat Phleung Chheh Roteh J: Sangkat Boeng Thum

Note -Khan Sen Sok (1208) is a northeasterly adjacent district to Khan Pou Senchey.

-Some of commune codes of Pou Senchey are not available at the time of reporting.

Disclaimer The map above may NOT be 100% accurate and therefore it is intended for indicative illustration only.

A

B C

D

E F

G

H

I

J

2 VTRUST Journal of Real Estate | Volume 1, Issue 6 | Land Market Review: Pou Senchey District | Page 2

In Chaom Chau, land prices across the whole commune ranged from

US$35 p.sqm. in undeveloped zones to a peak of US$1,800 p.sqm.

along prime streets (e.g. Confederation de la Russie) and bustling

commercial hubs. The average market price in Chaom Chau was

US$400 p.sqm in Q3 2016, growing from US$320 p.sqm. in 2013.

The average growth for land market prices was eight percent y-o-y.

Immediately adjacent to Phnom Penh International Airport, Chaom Chau covers some part of the capital’s arterial street, namely Confed-

eration de la Russie (Russian Boulevard in English), National High-

way 3, and National Highway 4. Further, it shares a long distance of Veng Sreng Blvd.

With similar geographic positioning, Kakab shares a similar market

value as does Chaom Chau, but being closer to the central business hubs of the capital makes Kakab stand out in term of land prices and

commercial demand. Land prices in Kakab commune grew 10 per-

cent annually, from an average of US$380 p.sqm. in 2013 to US$490

p.sqm in Q3 2016. Kakab’s land market prices could range from a small base of US$70 p.sqm. in the undeveloped areas to a peak of

US$2,080 p.sqm. along prime streets and in the most bustling com-

mercial hubs.

Nevertheless, a notable land price growth was mostly witnessed in less developed communes, as speculation seemed to be challenged

by high prices in prime hubs and along major streets, but this specu-

lative vision rather spilt over across the underdeveloped suburbs of Pou Senchey. For example, less developed communes such as

Samraong Kraom, Kaboul, Snao, and Trapeang Krasang experienced

a land price surge of about and more than 40 percent y-o-y, mainly due to their small price base and high price jump, as driven by the

trendy development of plot land subdivisions.

Samroang Kraom, which shares a long distance of Tomub Kop Srov

Road, was seen with a remarkable growth in land prices following the road development that is currently almost complete. In 2013, the

average market price of land in this commune was about US$45

p.sqm., and in Q3 2016 the average price reached US$150 p.sqm.. The average annual growth in the Samroang Kraom was almost 80

percent within the period of those three years.

Similarly, Kamboul, Snao, and Trapeang Krasang experienced a big

jump in land price growth, mainly driven by (1) increasing plot land subdivision development, (2) increasing demand for low-price land

parcels and housing in the peripheral suburbs of the capital, and (3)

the rapid pace of urban expansion especially since early this decade.

Prime Street and Pricing

Chaom Chau

Chaom Chau is located west and south of Phnom Penh International Airport, being home to a large number of business hubs and residen-

tial zones, relatively similar to its neighbor Kakab. Residential towns and commercial activities concentrate only along the commune’s

prime streets, thus making property prices along the streets higher

than its less developed or undeveloped outskirts.

In the third quarter of 2016, average land price along Confederation de la Russie (Russian Boulevard in English) in Chaom Chau com-

mune was US$1,520 p.sqm., with a price range from US$1,400

p.sqm. to US$1,800 p.sqm.

National Highway 4, the Kingdom’s arterial road interlinked with the capital’s main boulevard Confederation de la Russia, could be of-

fered on the market at US$430 p.sqm on average. The base price

started from US$140 p.sqm in the farther west parts of the commune and a peak of US$1,300 p.sqm. in the areas close to Chaom Chau

Circle.

On Veng Sreng Boulevard, land market prices could range from US$600 p.sqm in a less developed zone to US$1,550 p.sqm. in a

more commercial zone, with the average market price at US$850

p.sqm.

Kakab

Kakab is closer to the city center, being home to Phnom Penh Inter-national Airport. The commune shares four of the capital’s main

streets along which a large number of businesses are based, thus

creating high values for land prices there.

One of the high value, prime streets in Kakab is Confederation de la Russie (Russian Boulevard in English), along which land price could

be about US$1,650 p.sqm. in Q3 2016, ranging from US$850 p.sqm.

often for a large portion of vacant land, to US$2,080 p.sqm. for a prime commercial location.

Another high value, prime street of Kakab is Street 2004, running off

Confederation de la Russie through to Wat Ang Taminh Street. Along Street 2004, the average market price for land was US$1,300

p.sqm., with a range from US$800 to US$1,850 p.sqm.

Next, along Oknha Try Heng (Street 2011), which runs off Confed-

eration de la Russie through to the crossing railroad, average land price was US$780 p.sqm., with a range from US$570 p.sqm. to

US$1,200 p.sqm. On the other hand, Street 105K is less competitive

Street Name Starting Point Direction Ending Point Distance Price Range Avg. Price

Confederation de la Russie from Chaom Chau Circle heading northeast until You Eng Hotel & Rest. 1,720 meters $1,400 - $1,800 $1,520

National Highway 3 from Chaom Chau Circle heading southwest until Entrance to Trapeang Sala Pagoda 3,800 meters $130 - $550 $350

Natational Highway 4 from Chaom Chau Circle heading west until Crossing Railroad 3,430 meters $270 - $1,450 $540

Veng Sreng Boulevard from Chaom Chau Circle heading southeast until Veng Sreng Water Supply 3,700 meters $600- $1,550 $850

Note: P.SQM = per square meter; Confed. = Confederation. Disclaimer: Distances and price ranges indicated above are indicative values only. While the figures might be close to the actual ones,

they might not be 100% accurate due to rounding and other statistical implications.

CHAOM CHAU'S PRIME STREET PRICES

Price Range P.SQM, Stratified by Streets of Chaom Chau Commune, Q3 2016

Street Name Starting Point Direction Ending Point Distance Price Range Avg. Price

Confederation de la Russie from Kia Motors Cambodia heading southwest until You Eng Hotel & Rest. 3,500 meters $850 - $2,080 $1,650

Street 2004 off Confed. de la Russie heading south until Wat Ang Taminh Street 1,800 meters $800 - $1,850 $1,300

Oknha Try Heng 2011 off Confed. de la Russie heading north until Crossing Railroad 520 meters $570 - $1200 $780

Street 105K off Confed. de la Russie heading north until Crossing Railroad 1,450 meters $200 - $750 $300

KAKAB'S PRIME STREET PRICES

Price Range P.SQM, Stratified by Streets of Kakab Commune, Q3 2016

Note: P.SQM = per square meter; Confed. = Confederation. Disclaimer: Distances and price ranges indicated above are indicative values only. While the figures might be close to the actual ones,

they might not be 100% accurate due to rounding and other statistical implications.

3 VTRUST Journal of Real Estate | Volume 1, Issue 6 | Land Market Review: Pou Senchey District | Page 2 VTRUST Journal of Real Estate | Volume 1, Issue 6 | Land Market Review: Pou Senchey District | Page 3

in land prices. By the third quarter of 2016 the average market price

along this street was US$300 p.sqm., even if in the sought-after loca-tions the prices could jump to US$750 p.sqm.

Trend & Outlook

Market & Pricing Trend

Land price growth across Pou Senchey district seemed stable since early last year, and it is predicted to see a slight increase over the

course of the next two years by going through to 2018. In general,

Pou Senchey’s pricing growth dropped negatively to 0.2 percent over the course of the first three quarters of 2016, though this has almost

no impact on general price growth within the whole district.

However, land prices as well as other properties in the form of land

in Phnom Penh will start to pick up markly again by 2019.

Urban Expansion

Thanks to its many available large portions of land for new develop-ments and land properties with comparatively low prices, Pou

Senchey has been seen with tremendous opportunities for urban ex-pansion and relocation or new positioning of complementary services

and amenities.

Residential towns, several other types of cluster housing, and com-

mercial establishments have been positioned in many different parts of the district, especially the district’s outstanding communes of Ka-

kab and Chaom Chau, resulting in an increase of population there

and leading to increasing demand for new housing units and related infrastructure improvements.

Opportunities have been there since many years ago for Pou Senchey

mainly thanks to its strategic locations, coverage of capital’s arterial

roads and main streets, and large space available for urban expansion

to host the increasing number of population as well as industrial and commercial positioning. Further, the increasing demand for develop-

ment parcels with comparatively low prices also offer the district lots

of opportunities for growth.

Since recent years, it is notable that a number of developments have concentrated in the commune of Kakab and Chaom Chau, both of

which shares arterial roads and main streets, along which commercial

activities exist to complement the increasing number of residential communities nearby the areas.

Tomnub Kop Srov Road, one of the capital’s ring roads, will be soon complete, while Veng Sreng Boulevard was rehabilitated by being

expanded 22 meters wide and paved with concrete. Both of the roads run through parts of Chaom Chau and other parts of Phnom Penh.

These establishments have created numerous opportunities, added

further property values, and drawn new development potentials to the areas, especially along those streets.

In Kakab, recent developments are in the realm of residential and commercial subsector. Notable developments under construction are

Budaiju Residence (condominium project) and Lion Mall (commercial and shopping complex) along Confederation de la

Russie, as well as many other cluster housing projects, both complete

and under construction. Up to date, in Kakab commune alone, about 2,700 new cluster housing units have been complete, and 950 are

under construction. Nevertheless, 3,300 units of the planned housing

projects have been halted construction so far due to unsatisfactory

pre-sale results.

Industrial Trend

Increasing land prices and rental costs in the zones nearby inner city center will force existing factories that rely on rents to consider relo-

cating to the suburbs such as western parts of Pou Senchey where rental costs and cost of living of workers are much lower. Easy ac-

cess to National Highway 4, which directs to the Kingdom’s most

important seaport, might also weigh the consideration for new facto-ry and other industrial park positioning.

As of today, Pou Senchey is already home to 40 percent of the total factories in Phnom Penh, ahead of Dangkao (22 percent) and

Meanchey (15 percent).

March-2000 Arial View: overview of areas surrounding Phnom Penh International

Airport (Kakab commune, Pou Senchey district). Photo: Google Satellite Image

March-2016 Arial View: overview of areas surrounding Phnom Penh International

Airport (Kakab commune, Pou Senchey district). Photo: Google Satellite Image

Dec-2013 Street View: In front of access to Tomnub Kop Srov Road (Street 120K),

Chaom Chau commune, Pou Senchey district. Photo: Google Street View

Sept-2016 Street View: In front of access to Tomnub Kop Srov Road (Street 120K),

Chaom Chau commune, Pou Senchey 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 Appraisal Tarek Genena | Consultant | VTrust Appraisal Phin Sopthea |Valuation Manager| VTrust Appraisal

19 October, 2016 Volume 1, Issue 6

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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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