Daun Penh District Absorbs Majority of Office Segment in Phnom Penh
But what most people know more about the district is office buildings. Currently, Daun Penh absorbs the majority of office supply in Phnom Penh with 25% of the whole office market share in the capital. According to Knight Frank H2 2020 report, Daun Penh recorded the highest concentration of office stock with 25% of the overall supply, followed by Chamkarmon with 20%, 7 Makara 18% and Boeung Keng Kang 16%.
As at H2 2020, the cumulative office supply in Phnom Penh stood at more than 609,000 square meters which is a slight increase of 3.6% over H1 2020. An additional 197,000 square meters NLA of office supply is expected to come on stream during 2021, said the report.
The report added that Grade B comprised the majority of office supply with 50%, followed by Grade C (41%) and Grade A (9%). However, by the end of 2021, this trend may reverse as more than 67% of the incoming supply comprise Grade A offices, if all the on-going developments complete as scheduled.
Apart from being well-known for office supply, Daun Penh also has many businesses and major, popular places to visit such as Phsar Thom Thmey, Soriya shopping center, royal palace, national museum, Wat Phnom and independence monument and so on.
Land price in Daun Penh district is the most expensive in Phnom Penh with residential land sold at $3,500 dollars on average while commercial land averages $6,100 dollars per square meter, according to a report by Key Real Estate.
Within Daun Penh, the sangkats of Phsar Thmey 1,2, and 3 have the most expensive commercial land, selling at $9,000 per sqm on average. For residential land, Sangkat Phsar Chas registered the highest price at more than $4,000/sqm.
In the Khmer Times article, Sorn Seap, founder and CEO of Key Real Estate, explained that the main reasons for this are the mature real estate market and high land prices registered in each and every sangkat in the district.
He said: “Daun Penh is the oldest developed area, hosting three major markets: Phsar Chas, Phsar Kandal, and Phsar Thmey. Moreover, it has the most popular tourist destinations like Royal Palace and Riverside area.”
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