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New landmark offers investors opportunities to capitalise on Phnom Penh’s flourishing economy
Mixed-use development Odom is expected to meet the increased demand for office and residential spaces as Cambodia’s capital attracts foreign investment and talent
The new mixed-use development, Odom, is set to rise as Phnom Penh’s new landmark by the CBD. PHOTO: URBAN LIVING SOLUTIONS
The global property market may be facing economic headwinds right now, but it looks like it is Cambodia’s time to shine.
The Asian Development bank has forecasted that Cambodia’s gross domestic product (GDP) will grow by 5.5 per cent in 2023. This will place Cambodia among the top three countries with the highest GDP growth in South-east Asia.
The country is currently one of the fastest-growing economies in the world, having blossomed economically over the past 20 years thanks to strong exports and large capital movement flowing in from the region. An outlook study jointly produced by PwC Singapore and PwC Cambodia in October 2022 highlights that Cambodia remains on a trajectory of high growth and continues to be attractive for foreign investment.
Earlier this year, Cambodian Prime Minister Hun Sen lauded the General Department of Taxation (GDT) for its efforts in collecting tax revenue that exceeded the budget plan in 2022. The increased tax revenue has contributed to the country’s national economic development, as it has enabled the government to invest in new, large-scale infrastructure projects that will in turn facilitate real estate market expansion. These range from building airports and railway lines to expressways and bridges.
These projects in the pipeline also mean greater efficiency, accessibility and jobs in the country. Together with a stable political climate, all of these make Cambodia an increasingly attractive destination for inflows of foreign direct investment.
The appealing conditions for foreign investors are further enhanced by government incentives. These incentives include tax breaks, reduced fees for permits and licenses, and easier procedures for obtaining land titles.
Given Cambodia’s strategic location, competitive production conditions and comfortable climate, the country has attracted increased foreign investment in recent years, especially from investors keen on its real estate market.
In recent years, Cambodia’s major cities have experienced population surges. Young professionals have flocked to Phnom Penh – a hub for business, manufacturing and education.
The influx of people and the growing number of companies making the capital city their home has resulted in an increased demand for residential and commercial properties, even as Cambodia is set to grow new economic sectors. Investors can expect real estate values to rise especially in Phnom Penh, with its lucrative investment opportunities.
Given the rapid expansion of Cambodia’s economy, Phnom Penh needs to increase its office space. The capital currently has just over 600,000 sqm (6.5 million sq ft) of office space, but is expected to need about 887,000 sqm (9.5 million sq ft).
An icon in the heart of the business district
One developer seeking to meet these needs is Urban Living Solutions (ULS). Based in Phnom Penh, the real estate and lifestyle development firm’s niche is in building community-focused urban spaces that connect people and nurture communities.
Notable past projects helmed by ULS include mixed-use development Rose Apple Square in Siem Reap, which was successfully completed earlier this year and awarded by the 2023 Asia-Pacific Property Awards in the Mixed-Use Development category; and Urban Village (Phase One) in Phnom Penh, another award-winning condominium project that is currently in Phase Two.
With its excellent track record, the firm has turned its sights to Phnom Penh’s Norodom Boulevard, the main north-south artery of the city, where construction of Odom, a mixed-use development, has begun. With its completion planned by the end of 2025, Odom is set to become the new icon on Phnom Penh’s skyline in slightly over two years’ time.
Strategically situated on the cusp of the capital’s business district, Odom is a prime spot that also sits alongside embassies and offices.
Designed by award-winning Singapore firm Kite Studio Architecture, the ambitious project consists of two towers: Odom Tower, a 45-storey building for commercial and office space, and Odom Living, a 22-storey residential complex.
The two are connected by a sky bridge, as well as a five-storey retail podium, designed as a landscaped garden that incorporates boutiques, restaurants and cafes.
The Odom Tower will be a haven for businesses, with its offerings of modern amenities and state-of-the-art facilities for business owners looking to rent or invest.
Dubbed “office condos”, the tower is similar to a traditional residential condo, but with less hassle and a better chance of long-term returns. Just like a residence, you own the strata space and can choose to rent it to a tenant, use it for yourself to house your new corporate headquarters, or look at reselling in the future at a higher price.
In comparison, much of the more formal office space currently available in the area dates from 20 years ago. The ageing office spaces often lack the amenities that multinational companies are looking for, such as formal lobbies, retail spaces, design aspects, and strong property management.
Odom, with its unique design, Grade-A office spaces, large floor plates and expected LEED certification, is aimed at meeting the expectations of next-generation Cambodian, international businesses and the talent the companies are trying to attract.
Luxurious living with attractive rental yield
The luxurious Odom Living complex will span over 18,000 sqm and feature spacious one, two, three and four-bedroom family homes designed for comfortable living. Ranging from 78 sqm for the one-bedrooms to 262 sqm for the four-bedrooms, homes at Odom are substantially larger than the average offered elsewhere in Phnom Penh.
Each comes with spacious layouts, large balconies, design-focused bathrooms and top-of-the-line kitchen appliances, ideal for those who enjoy cooking and entertaining at home. The units also come with city views and floor-to-ceiling windows, which allow in natural daylight.
Other key amenities at this pet-friendly complex include 24-hour reception and security, a rooftop terrace, gym, pool, green space, and spaces that are ideal for work or small private meetings.
“It’s Cambodia’s time to shine,” says Mr Ty Chea, ULS’ head of sales. “Right now and I would say for the next six months, Cambodia offers a great selection, lower entry cost and hence a higher return on investment in rental return and capital appreciation if you buy sensibly. That is, if you buy properties in good locations by reputable developers.”
Mr Chea further notes that while Cambodia’s neighbours Thailand and Vietnam are more developed in comparison, the value proposition for Cambodia is superior.
“Thailand's market is more active at the moment given the influx of Chinese buyers and other expats, but while that is an advantage for the sellers, it is a disadvantage for the buyers as they are in a competitive market,” he says.
The first stage of construction has kicked off for Odom, following its recent ground breaking ceremony earlier this month on June 11, 2023. The development is due to be completed in the fourth quarter of 2025.
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Disclaimer
Investors are advised to do the necessary research on the investment beforehand to prepare for any financial, regulatory and other legal implications that an overseas investment like this may imply.
