ruessei kaev housing market and outlook report 2016 presentation

Housing Market and Outlook Report 2016 for the District of Ruessei Kaev

By Mr. Hoem Se iha

Direc tor o f Research,

Vt rus t Appra i sa l Co . , L td .

Tel : 012-699-553

Emai l : se iha@vtrus tappra i sa l . com

Phnom Penh, Capital of Cambodia

RESEARCH REPORT BY HOEM SEIHA, UNDER VTRUST

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Central Business Districts


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List of Phnom Penh Districts


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Original Source: http://www.citynet-ap.org/En/user/resource/docs/241.pdf

Key Facts & Figures

Phnom Penh - founded in 1434, has been now the capital and largest city of Cambodia.

It’s located on the banks of the Tonlé Sap and Mekong River.

Today it is the nation's center of economic and industrial activities, as well as the center of security, politics, cultural heritage, and diplomacy of Cambodia.


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Quick Stats:

Area (sq.km) 678.46

Total Districts (khan): 12

Total Communes

(sangkat)

96

Population 2.2 million

Population Density (per

sq. k.m)

(Source: Wikipedia)

5,343

Population Growth

(Source: World Bank)

4%

Administration Divisions


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As of 2014 12 Districts

Dangkao was separated from Pou

Senchey district

Preaek Phnov was seperated

from Kankal and Pou Senchey

district

Introduction: Ruessei Kaev District


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Introduction: Ruessei Kaev District

Ruessei Kaev district (Khan Ruessei Kaev or Khmer: ខណ្ឌ ឬស្សីកែវ) is one of Phnom Penh’s 12 districts and administratively

subdivided into 6 communes (Sangkat or ស្ង្កា ត់), namely

Chrang Chamreh Ti Muoy , Chrang Chamreh Ti Pir,

Kilomaetr Lekh Prammuoy, Ruessei Kaev, Svay Pak, and

Tuol Sangkae.

The district lies north and northeast of the prominent central

business districts of Doun Penh and Tuol Kouk, having easy

and quick access to the central city of Phnom Penh. As

combined, Ruessei Kaev district is currently home to an

estimated number of 180,000 residents.


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Supply Share by Location


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Supply Share by Location

As of today, Ruessei Kaev district is home to a cumulative

supply of 12,200 landed housing units (with 86 percent

complete, while some under construction), clustering in

different communes of the district.

Recorded as of 2016, Chrang Chamreh Ti Muoy shares 21

percent (about 2,544 units) of the total cumulative housing

market supply; Chrang Chamreh Ti Pir, 4 percent (465

units); Kilomaetr Lekh Prammuoy, 25 percent (3,085 units);

Ruessei Kaev commune, the largest market, up to 29

percent (3,574 units); Svay Pak, 5 percent (597 units); and

Tuol Sangkae, 16 percent (2,004 units).


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Supply Share by Borey


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Supply Share by Borey

Across Ruessei Kaev district, a number of cluster landed housing projects have

been positioned to offer residential options for home buyers from different parts

of the capital.

The market share dominance as of 2016 was Borey Vimean Phnom Penh by Ly

Hour Development Co., Ltd., sharing up to 16 percent (1,977 units, 90 percent

of which were complete) of the total cumulative supply.

Borey Peng Huoth, Borey New World, and Borey Rith shared the second largest

market in the district, up to 9.1 percent, 8.9 percent, and 8.4 percent (1,120

units, 1,102 units, and 1,035 units, respectively). Nevertheless, there were also

many other projects with fewer than 400 units, collectively sharing up to 39

percent (4,787 units, 84 of which were totally complete up to the date of

reporting) of the total cumulative market supply.


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Development, Completion, Sale


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Development, Completion, Sale (1)

Among the six communes of Ruessei Kaev district, Chrang Chamreh Ti Muoy

had 1,398 units completed, 247 units nearing completion, and 899 others still

under construction. Overall, the commune achieved up to 94 percent of all units

sold, outperforming the other communes within the district.

Chrang Chamreh Ti Pir fetched a relatively small market share, having only 465

units in total supply, with 94 units totally complete, 148 units nearing

completion and 223 others under construction. About 51 percent of the housing

units there had been sold out.

Kilomaetr Lekh Prammuoy held a relatively large market stake within the

district, having a total supply of 3,085 units, with 1,375 units totally complete,

593 units nearing completion, and 1,072 others under construction. About 72

percent of the total housing supply there had been sold.


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Development, Completion, Sale (2)

Ruessei Kaev commune took the largest share within the district, having up to

3,574 units of the total supply, with 2,537 units totally complete, 291 units

nearing completion, and 733 others under construction. About 80 percent of the

total housing supply had been sold out.

Svay Pak had a total of 597 units supplied, without yet any units complete by

then, while 303 nearing completion, and 294 others under construction. About

78 percent of all the units there had been sold out.

Last, Tuol Sangkae held a relatively large market stake, having a total market

supply of 2,004 units, with 1,850 units totally complete, 28 units nearing

completion, and 111 others still under construction. Above all, all of the units

there had been sold at presale stage.


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Supply and Completion


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Supply and Completion

Chrang Chamreh Ti Muoy saw the first housing development

project in 2012, when construction work started for 546 units of

the first out of 5 phases of Borey Vimean Phnom Penh by Ly

Hour Development Co., Ltd. In 2013, two other housing

projects were launched construction work for 1,321 units, the

majority of which were shared by Borey Peng Huoth (the Star

Premier).

Then trend of the new supply slowed down following those

preceding years, except for housing completion which started to

jump high in 2015 (with 892 units totally complete), and onto

2017 it is projected that a figure of 1,146 units will be finished

that year.


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Chrang Chamreh Ti Muoy


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Chrang Chamreh Ti Pir


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Kilomaetr Lekh Prammuoy


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Ruessei Kaev (Commune)


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Tuol Sangkae


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Market Supply by Housing Types


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Supply in 2016 by Type


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Completion by Housing Types


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Completion in 2016 by Types


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Completion by 2017 (Forecast)


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Average Housing Prices


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Market Share by Price Range


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Housing Size Range


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Outlook

Cluster landed housing market in Ruessei Kaev district grew strongly

within the past-five-year period, with average launches of new 1,600

units into the market every year be- tween 2012 and 2016, while about

2,800 and 3,380 units will be finished by 2016 and 2017, respectively.

Both sales and construction work performed well recently, with current

completion of 86 percent compared all units launched for construction so

far.

Achieved sales rate was up to 83 percent, meaning only 17 percent still

on the market inventory. Despite a slight slowdown since late 2015,

market absorption was relatively good within recent years, and this trend

still continues to grow well in the next following year, given the overall

favorable performance of cluster landed housing market within the

district.


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Outlook (1)

The continued growth was thanks to housing market stimuli (such as

minimal or zero down payment schemes and other very flexible

installment options, to name a few) initiated by developers across the

capital’s housing market in the midst of 2016 has also helped bolster

the demand and keep the market growth from slowing down.

Regarding take-up rate, the majority of the finished housing units are

occupied, though relocation of residents to take up the finished

housing projects may take some time, about 3 to 6 years on average.

Still, speculative purchases of housing units in primary market will

still continue to leave some of finished housing units empty due to

slower secondary demand than the rate of housing completion,

especially in 2016 and onto 2017.


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Outlook (2)

Because the district of Ruessei Kaev is immediately adja- cent to the capital’s

central business districts, it has now become residential hubs, where residents

can access to the business centers easily and fast if compared to the far-west

districts of the capital.

For a long perspective vision, the trend of landed residential developments over

there is fore- seen to advance strongly until the coming decade, as infra-

structure, communities, and amenities such as AEOM Mall, international

schools, hospitals, and many other complementary services have already been

positioned across the key hubs, offering residents conveniences.

Some vacant parcels of land along some key streets of Ruessei Kaev, namely St.

589, are under planning and could be turned into residential towns in the

foreseeable future Satellite view of cluster housing spots in Ruessei Kaev district.

Note: Starred spots are indication of landed and borey housing clusters.


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ruessei kaev housing market and outlook report 2016 presentation

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