Serviced Apts. Boom in PP

Billy Otter / Khmer Times No Comments Share:
As the economy grows, so does the demand ior serviced apartments in Phnom Penh. (KT Photo: Billy Otter)

PHNOM PENH, (Khmer Times) – As economic prosperity comes to Cambodia, so do the professionals who help drive this growth. Increasing numbers come from Europe and Asia. 
The Phnom Penh market is adjusting to housing standards demanded by this professional, heavily foreign workforce. About 4,000 serviced apartment units are to be in service by the end of this year, according to a new report by VTrust Property. Serviced apartments typically include maid service and guarded entrances.
According to Leah Valencia, of Elevated Realty in Phnom Penh, this demand will continue at its current level. At present, occupancy rates in  buildings that they represent are near capacity.
“Builders are making available the lower floors as they continue constructing the higher floors, so they are able to attain thirty to forty percent occupancy levels before the building is even completed,” said Valencia.
Another factor in this expansion is the emerging Khmer middle class, people who want to enjoy international living standards. 
“In a building with 45-60 units, we are seeing approximately 15 to 20 percent of the occupants being Cambodian nationals,” she said. “We are seeing competition in the market place forcing other buildings to start providing this style of living to be competitive with the newer projects.”
Rents for these properties vary greatly, depending upon location of the building, location within the building, and overall quality of the development.
Valencia said apartments are available in a large range of sizes: “From about fifty square meters, up to about one hundred twenty square meters, with the smaller ones starting at $400.00 per month.”
Projections from a report released by VTrust Property website indicate a continued growth in supply and demand in 2014, despite a drop in demand during the latter part of 2013.

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