The Number of Offices Being Rented Declined by 50 Percent, but the Price of the Rents Declines Only Slowly – Monday, 22.6.2009

Posted on 22 June 2009
The Mirror, Vol. 13, No. 618
http://cambodiamirror.wordpress.com/

“Phnom Penh: The number of clients who rent offices declined by 50%, but the prices of rents in Phnom Penh do not get much cheaper.

“The director of the Bunna Realty Group, Mr. Sung Bunna, said by telephone on Friday morning that offices for rent in Phnom Penh do not find enough renters, motivating some condo and apartment owners to reduce their rent prices by 10% to 20%, but some other office owners do not lower their prices.

“To lower the rent prices does not necessarily mean that the problems can be solved, and Mr. Bunna said, ‘In an economic atmosphere like the present one, to lower the rent prices will damage our general price structure at the market. Our investment atmosphere was good until early this year, but now it is not. However, the future will be better.’

“But he added that the rent prices of condos and apartments in Cambodia are lower than in neighboring countries. Offices for rent in Cambodia are classified in three classes. Class A: Rent prices are between US$20 and US$30 per square meter; Class B: Rents cost US$13 to US$20; and Class C: US$8 to US$13.

“He went on to say that foreigners rent those three classes of offices, but a remarkable number of local businesspeople also rent offices.

“The president of the Cambodian Economic Association, Mr. Chan Sophal, said on the same day that most predictions expect that the economy will rise again in 2010. As Cambodia depends a lot on the global economy, therefore Cambodia will only recover after the global economy recovers.

“He added, ‘The economic downturn paralyzes the real estate market, but too high a rise can also not be maintained in a sustainable way.’

“He continued to say, ‘If the economy recovers, there will not be many offices left for rent, because of the large demand, and because our countries attract many investors.

“‘Are the many constructions sites for condos and for apartments just to beautify the atmosphere with a supply surpassing the demand in the present Cambodian economic atmosphere?’

“To this question, Mr. Chan Sophan responded, ‘I think that there is not a supply beyond the demand, if the economy becomes again normal.’”

Rasmei Kampuchea, Vol.17, #4926, 21-22.6.2009
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Monday, 22 June 2009