Chakriya Khiev
Traffic drives past the Phnom Penh Tower, in Monivong Boulevard, this week. Photo by: CHAKRIYA KHIEV
Phnom Penh Post
AS Phnom Penh’s office space supply continues to grow, more companies are beginning to favour leasing in office complexes rather than individual units, industry experts say.
The completion of developments such as Phnom Penh Tower and other high-grade office space in the capital had provided a viable alternative for businesses, Bunna Realty Group director Sung Bonna said yesterday.
“Leasing office space allows companies to cut down on expenditure, such as security, taxation and electricity. It also offers the opportunity to receive more publicity,” he said.
Sung Bonna said investment in commercial property had been growing rapidly since the real-estate sector recovered from the financial crisis.
“Since 2009, the demand for space in office complexes has risen by 80 per cent,” he said.
However, Sung Bonna urged investors to be wary when considering investments in office space in Cambodia.
“They should be clearly aware of the current situation of the lease market before making a decision. It is still small, and they need to consider supply and demand.”
However, while demand for such space remains an issue, some office leasing companies believe the sector is still competitive.
“Although rival companies can offer office space at a more competitive rate than us, our other rates are all-inclusive, providing potential clients with options,” office rental service SSN Center general manager Phan Sopheap said yesterday.
Other companies highlighted the financial benefits of renting space in office complexes, rather than single properties.
“Historically, occupiers had little choice when choosing an office building, so many are still in converted villas,’’ Kim Sung Hwan, general manager of construction contractor Hyundai-Amco, said.
“Developments such as Phnom Penh Tower now provide occupiers with a new building that has been constructed to international safety standards.”
He added that international and local businesses needed to have a professional office like Phnom Penh Tower, as location and quality played a key role in projecting the right image for a business.
Phnom Penh currently had about 70,000 square metres of grade A office space, which cost between $20 and $30 a square metre, while the 10,000 square metres of grade B office space in the capital fetched between $10 and $20, Sung Bonna said.
AS Phnom Penh’s office space supply continues to grow, more companies are beginning to favour leasing in office complexes rather than individual units, industry experts say.
The completion of developments such as Phnom Penh Tower and other high-grade office space in the capital had provided a viable alternative for businesses, Bunna Realty Group director Sung Bonna said yesterday.
“Leasing office space allows companies to cut down on expenditure, such as security, taxation and electricity. It also offers the opportunity to receive more publicity,” he said.
Sung Bonna said investment in commercial property had been growing rapidly since the real-estate sector recovered from the financial crisis.
“Since 2009, the demand for space in office complexes has risen by 80 per cent,” he said.
However, Sung Bonna urged investors to be wary when considering investments in office space in Cambodia.
“They should be clearly aware of the current situation of the lease market before making a decision. It is still small, and they need to consider supply and demand.”
However, while demand for such space remains an issue, some office leasing companies believe the sector is still competitive.
“Although rival companies can offer office space at a more competitive rate than us, our other rates are all-inclusive, providing potential clients with options,” office rental service SSN Center general manager Phan Sopheap said yesterday.
Other companies highlighted the financial benefits of renting space in office complexes, rather than single properties.
“Historically, occupiers had little choice when choosing an office building, so many are still in converted villas,’’ Kim Sung Hwan, general manager of construction contractor Hyundai-Amco, said.
“Developments such as Phnom Penh Tower now provide occupiers with a new building that has been constructed to international safety standards.”
He added that international and local businesses needed to have a professional office like Phnom Penh Tower, as location and quality played a key role in projecting the right image for a business.
Phnom Penh currently had about 70,000 square metres of grade A office space, which cost between $20 and $30 a square metre, while the 10,000 square metres of grade B office space in the capital fetched between $10 and $20, Sung Bonna said.
3 comments:
Sooner or later, you have to have a good paying job to live in Phnom Phench. Nomal Cambodian who is selling foods in the central market or on the street will no longer can afford to stay in the city any more. It is a sad story but it is unavoidable. It happened to all developing countries around the world.
I hope that all Cambodian realize the situation. It is not Gov. fault.
I can give an example on what happened in the US.
When the NFL team need land to build a football stadium, the comissioner and the owner of the team went and talk to the Mayor of that city to aquire the land. By law, the city has the right to take any one land for economic development.
Then the city contact the land/house owner and offer them a fair market value (buy them out) and the owner has no choice but to take the offer. But the money that the city paid the owner, is not enough to buy any property around that area so you have move out of the city.
This is how the law work in the US when the Gov. need your land for economic development.
Is it fair ????
You'll be the judge !!!!!
9 September 2011 3:58 AM, don't talk nonsense, I live in the U.S too so I know. In the U.S they have a law that require them to acquire land for public projects. The government will normally offer them above the market price, if the owner refuse they then will take the matter to the court. Whoever win, win. But the difference is they offered the owner above the market price, not peanut like in Cambodia.
Your statement doesn't make any sense. You said the city mayor offered the owner the market price, but the money is enough to buy property around that area. This is crap. If it is a market price, then it means a market price and you can buy the same property with the same size of land in the same suburb.
If, like you said, the owner can't buy anything in the same area with that money, then it means the price offered was not a market price and if that is the case the owner will take the city mayor to court. This is the reality in America, but not in Cambodia.
From what you said it is not fair, but you are not telling the truth or you don't know the truth but just make up story.
It is the true !
Do you know Dallas Cowboy Stadium in Arlington, Texas ????
You can't see it because you didn't think hard enough. The owners took the city to court then the court decided to give the owners little more than the market value. But the problem is you can't buy the house when nobody want to sell it. Every one who didn't effect by the project, want to hold on to the property for future sell.
After the stadium was built, the value of the property around the neighborhood was triple.
Let me give you some number so you can see clearly. I hope you can do the math.
Market value : $ 150,000
The court decision: $ 180,000
Now no body want to sell their house.
You have 180K but you still don't have the house in your old neighborhood.
After the stadium was built, the property value around the stadium went to 450K.
Now, you tell me, how can I still stay in the same neighborhood with $ 180,000 ????
Please, tell me !!!!!!
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