Khan Boeung Keng Kang (BKK) remains the top spot for serviced apartments, according to a report by Knight Frank Cambodia. As of year-end 2019, Phnom Penh’s serviced apartment units totalled 5,999 units spread across 161 projects. Of these projects, 516 units across 9 projects were reportedly added by the second half of the year.
Serviced apartments in the city mainly cater to the demand from expatriates working in Phnom Penh. Due to their additional services and facilities, serviced apartments may continue to be preferred over traditional condominiums, according to Knight Frank.
While the expected increase in supply of serviced apartments bodes well for consumers, it may pose a new challenge to landlords of existing apartments. According to Knight Frank, the increasing supply may lead to tenants being gradually more selective due to a wider range of choices. Landlords may need to offer additional services or allow other concessions to keep a healthy occupancy rate, especially among long-term tenants.
As more projects continue to be launched, tenanted properties, landlords, and related stakeholders will be expected to provide increasingly competitive pricing and flexibility in terms of tenant requirements. According to Knight Frank, the influx of expatriate workers has been sustaining the demand for this sector. Should this market experience disruption, landlords may be faced with tighter competition against condominiums and extended-stay hotels, all for the same shrinking pool of tenants.