Singapore, 29 April 2015
Healthy Sales
Axis Residences is a prime residential Cambodian condominium project which distinguishes itself through quality facilities and amenities at highly competitive prices in the fast growing city of Phnom Penh. Over 100 visitors attended the project’s first sales exhibition over the weekend of 11-12 April by CBRE Singapore and recorded healthy sales. The units were sold to a diverse range of investors of both local and foreigners.
Cambodian developer Spring CJW’s General Manager Edwin Low said “We are pleased with the positive response from investors and the good take-up. This affirms we are on the right track with our philosophy of designing and delivering well-built projects in good locations with quality finishing, and our buyers have demonstrated they share an affinity for our development philosophy. Savvy investors are highly discerning and know a quality project when they see one. Axis Residences’ first class full condominium facilities, amenities and quality layout resonate with local Cambodian, Singaporean and foreign investors”.
The firm looks to leverage the wealth of project development and construction experiences of its consortium of Singapore-based project partners to deliver and set a new benchmark in residential project development in Phnom Penh. This emerging market is undergoing tremendous transformation and investors will ride the wave of growth with Axis Residences.
Mr Low added “The fact that over 60 per cent of the project was pre-booked before the public launch, and the good take up in our inaugural exhibition in Singapore is testament of the maturing local market and growing demand for Grade A condominium projects. We set out to create a product that offer scale, well appointed and good sized apartments with extensive recreational facilities to complement the location where the affluent stay and that is near good schools and employment centres. 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 in Phnom Penh in mid-March this year”.
Axis Residences Project Details
The 566-unit condominium development project comprises eight 10-storey towers, complete with a full suite of more than 20 sports and leisure amenities, including a jacuzzi, indoor and outdoor gymnasium, tennis court and half basketball court, indoor and outdoor children’s playground, as well as swimming pools and abundant parking along with a range of other recreational facilities within the property.
Axis Residences is located within close proximity to Phnom Penh’s high-end residential districts, luxury villas, as well as the most prestigious international schools in Cambodia, including Nord Anglia's Northbridge International School, CIA First International School and Limkokwing University. Phnom Penh Royal Hospital, Ratana Plaza Mall, Phnom Penh International Airport, the under-construction Lion City Gateway, a mixed-use development of over 200,000 square metres Gross Floor Area comprising a shopping mall, hotel and other complementary use is within close proximity. Phnom Penh Special Economic Zone is also close by.
Cambodian Economy Growing
Data demonstrates that Cambodia has achieved an average GDP growth in excess of 7.5 per cent over the last 10 years from 2005 to 2014, with the World Bank projecting Cambodia’s economic growth to continue at 6.9% for 2015 and 2016.
CBRE Cambodia Research has tracked the emergence of multinational corporate occupiers from a wide range of industries setting up in Phnom Penh, confident of Cambodia’s growth story. The sectors represented include financial services, high-value electrical, mechanical automobile and the garment and textile trades. Noticeably, Phnom Penh’s Special Economic Zone (PPSEZ) is the leading economic zone in the Kingdom. After 8 years of operations, PPSEZ with its 77 international and domestic investors/manufacturers, is missioned to actively contribute to and promote Cambodia’s development as a destination for larger and global foreign direct investments (FDI). PPSEZ is located just some 6 kilometers from Phnom Penh International airport.
With healthy economic growth, the local condominium scene is also heating up. In 2009, CBRE Cambodia recorded a total of 178 condominium units in Phnom Penh. However, this grew to 2,095 condominium units by 2014 with many investors recording capital gains in excess of 5 per cent per annum and in excess of 6 per cent per annum on rental returns.
Simon Griffiths, Associate Director of CBRE Cambodia said, “International investors and developers continue to do extremely well in Cambodia, supported by favourable foreign ownership laws, and benefiting from Cambodia’s continued and strong growth”.
Foreigners welcome
Since the implementation of the "Law on the Provision of Ownership Rights over Co-owned Buildings to Foreigners" in Cambodia in May 24, 2010, foreigners may acquire apartments above the ground floor up to a maximum of 70% of all the units in any one co-owned building. Co-ownership is a reference to ownership of shared lots with common ownership similar to the common law reference to Strata Title. Foreigners are entitled to own units above the ground floor in co-owned buildings. Axis Residences is designed to attract foreign ownership in that apartments are located above the ground floor.
Leong Boon Hoe, Managing Director of CBRE Realty Associates is confident Axis Residences will be well received by investors in Singapore, as the quality of the project is comparable with the standard of good class condominium projects in Singapore. He said: “AXIS Residences represents great value. Its location within an enclave for high-end landed living and proximity to good international schools and the Phnom Penh Special Economic Zone will serve to boost the rentability of the units”.
“This, coupled with the potential for capital growth, will draw many investors to this city. Phnom Penh condominiums have recorded a five to seven per cent growth on rental returns, while investors have achieved 5 to 7.5 per cent capital growth on condominium investments per annum. These figures are backed by a strong support infrastructure and culture which support foreign investment, business and real estate ownership. The strong turnout at the seminars showed savvy Singaporean and foreign investors are turning their attention to this new emerging market. The good take up reflects the level of confidence investors have on the long term growth of Cambodia, and their willingness to take early positions”.
Prices begin for AXIS Residences from US$1,236psm (equivalent to S$1,680*psm), based on the current exchange rate. The sales exhibition in Singapore will take place at Lengkuas Room, Singapore Marriott Tang Plaza Hotel, from 1 – 3rd May (Fri – Sun) 2015.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
