CBRE Cambodia is part of a global network of 372 CBRE offices in 44 countries which support one another with research, data and investors. However the specific collaboration between CBRE Singapore and CBRE Cambodia on the ‘AXIS Residence’ development is a testament to the changing nature and growing significance of the Cambodian real estate market in Singapore and across the Asia-Pacific Region.
On the 11-12 April, CBRE Cambodia was in Singapore to launch the ‘Axis Residence’; a Cambodian prime residential project located in the Northbridge area of Phnom Penh. The successful launch event saw over 100 registered buyers attend who were purchasing condos from the morning into the evening.
Simon Griffiths, Associate Director of CBRE Cambodia said, “International investors continue to show their appetite for investing in Cambodia as foreign ownership laws, low comparable tax rates and robust continued growth all provide persuasive reasons for those looking for investments in growth markets”.
The General Manager for the developer of AXIS Residence Edwin Low said, “The fact that over 60 percent of the project is pre-booked before the public launch is testament to the maturing local market and growing demand for quality condominium projects. In fact, savvy investors from Taiwan, Korea, Malaysia, and Singapore started looking out for quality and pre-booked units at Axis Residences ahead of the public launch”.
Condo’s were sold to a diverse range of investors of both local and foreigners, reinforcing Singapore’s position as a leading source of international real estate investment.
Griffiths added, “Sales in Singapore were healthy so we are pleased. We are seeing the majority of first movers coming from mainly wealthier Asian nations such as Japan, Taiwan, and Singapore.
CBRE Realty Associates in Singapore has circa 500 licensed sales agents. This demonstrates the dynamism and size of the Singaporean residential real estate market. By working with CBRE Singapore, CBRE Cambodia is leveraging their regional network to tap into this valuable market to bring increased investment to the Kingdom of Cambodia.
“There is a lot of potential in Singapore. Cambodia as a country is benefiting from increased exposure in the press, but there is still work to be done. Many investors are cautious and still asking simple questions such as, ‘Is it safe?’, ‘Is there WiFi?’, so the sales process is about educating overseas investors about Cambodia first and then introducing the right condo / investment for them.” Griffiths said.
Cambodian condo’s have gained a certain popularity with some Asia-Pacific investors and the appetite for investing in Cambodia remains strong. However, this popularity must be viewed in perspective. The number of condo’s and condo transactions per year in Cambodia is a fraction of neighbouring countries such as Vietnam, Thailand, Malaysia or Singapore.
CBRE Cambodia expects there to be over 11,000 existing condominium units in Phnom Penh by 2018 with that number likely to grow. “Triple this number are transacted in Bangkok each year which demonstrates the comparatively small nature of the Cambodian market, but there is plenty of room to grow and that is what we are seeing,” said Griffiths.