By Hoem Seiha
Phnom Penh, 28 July, 2014 - Despite a slight decline of overall occupancy rate of serviced apartments in Phnom Penh in the first half of 2014, slightly over a half of serviced apartment owners are likely to establish further apartment projects in the next few years, according to an industry study of serviced apartment market in Phnom Penh by VTRUST Group of Companies.
Slightly down from the often-reported occupancy rate of about 90% to 95% last year, the average occupancy rate of serviced apartments was only 84% in the first half of 2014, the study indicates.
Apartment owners and developers speculate that the economic integration among the ASEAN Nations and the increased economic activities will bring about a flow of foreign workforce into the country, leading to a more demand on serviced accommodations.
The study also finds that apartment market has been remarkably growing fast in recent years, as about 47% of all apartments existed to supply into the market just fewer than 3 years. The total number of apartment projects reaches 374 buildings, including well-graded and non-graded apartments, as bolstered mainly by the increased number of expatriates into Phnom Penh on job and business duties. Well-graded serviced apartments represent about 48% of the total apartments supplied into the market.
Kuy Vat, CEO at VTRUST Group, is optimistic towards to the key findings indicated in the study, especially about the success rate of apartment market in Phnom Penh. “This is a good sign because serviced apartment sector is still a nascent industry that needs time to further develop,” he said.
Kuy Vat foresees the positive future of serviced apartment sector by the key findings in the study report, saying that although the industry are now relying largely on foreign tenants—the current occupancy rates remain high among Asian (50%) and Western (47%) but low among local (2%) tenants—a new trend will change the shape of the industry.
“There will be a trend of local people who will also use serviced apartments in the future, and that half of the apartment owners and developers are planning for new apartment projects is a good sign for this industry, as partly to be boosted by this trend,” said Kuy Vat.
Phnom Penh, 28 July, 2014 - Despite a slight decline of overall occupancy rate of serviced apartments in Phnom Penh in the first half of 2014, slightly over a half of serviced apartment owners are likely to establish further apartment projects in the next few years, according to an industry study of serviced apartment market in Phnom Penh by VTRUST Group of Companies.
Slightly down from the often-reported occupancy rate of about 90% to 95% last year, the average occupancy rate of serviced apartments was only 84% in the first half of 2014, the study indicates.
Apartment owners and developers speculate that the economic integration among the ASEAN Nations and the increased economic activities will bring about a flow of foreign workforce into the country, leading to a more demand on serviced accommodations.
The study also finds that apartment market has been remarkably growing fast in recent years, as about 47% of all apartments existed to supply into the market just fewer than 3 years. The total number of apartment projects reaches 374 buildings, including well-graded and non-graded apartments, as bolstered mainly by the increased number of expatriates into Phnom Penh on job and business duties. Well-graded serviced apartments represent about 48% of the total apartments supplied into the market.
Kuy Vat, CEO at VTRUST Group, is optimistic towards to the key findings indicated in the study, especially about the success rate of apartment market in Phnom Penh. “This is a good sign because serviced apartment sector is still a nascent industry that needs time to further develop,” he said.
Kuy Vat foresees the positive future of serviced apartment sector by the key findings in the study report, saying that although the industry are now relying largely on foreign tenants—the current occupancy rates remain high among Asian (50%) and Western (47%) but low among local (2%) tenants—a new trend will change the shape of the industry.
“There will be a trend of local people who will also use serviced apartments in the future, and that half of the apartment owners and developers are planning for new apartment projects is a good sign for this industry, as partly to be boosted by this trend,” said Kuy Vat.