Cambodian Real Estate Sector Maintains Stability Amidst Tensions in Q1 2024

• 24 April 2024
• Local News
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The first quarter of 2024 has seen the Cambodian real estate sector maintaining a stable trajectory, with no significant shifts in tension but also no substantial new growth. According to the latest Market Insights Q1 2024 report by CBRE Research, published on 11 April 2024, the office building sector recorded an occupancy rate of 62.2%, while the retail market occupancy rate stood at approximately 63.4%. These figures, indicative of a gradual recovery in market confidence, do not herald any significant positive indicators, despite the projected 5.8% economic growth.

CBRE Research notes that although no new office building projects have been initiated, existing projects continue to progress as scheduled. Anticipated additions to office space for 2024 and 2025 are estimated at approximately 171,000 square metres and 268,000 square metres, respectively. The total office space, including existing and additional space, is forecasted to reach around 1,200,000 square metres in 2024 and over 1,400,000 square metres in 2025.

Quoting rent rates for office buildings are expected to remain relatively stable, with minimal growth projected through the fourth quarter of 2024. Likewise, the retail market is anticipated to face a continued deficit until 2025, potentially falling below the 60% mark. New additions to the retail market in 2024 and 2025 are estimated at approximately 101,000 square metres and 116,000 square metres, respectively, contributing to a total size exceeding 900,000 square metres by 2025.

In addition to occupancy rates and market projections, the report also provides insights into property prices. High-end condominiums are priced at around US$2,704 per square metre, while Class A apartment buildings command US$20.40 per square metre per month, Grade A office buildings are valued at US$26.5 per square metre per month, and retail spaces in supermarkets are leased at US$28.9 per square metre per month. The report also highlights the completion of 448 borey projects.

As Cambodia’s real estate sector navigates ongoing challenges and opportunities, stakeholders continue to monitor market dynamics closely, seeking avenues for sustainable growth and development.

• Analysis