CBRE Market View: Total retail supply drops nearly 17%, yet more projects announced

• 12 October 2019
• Local News
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The newly launched Phnom Penh market view compiled by international real estate agency CBRE Cambodia shows that total retail supply over Q3 2019 has dropped by 16.9%. However, despite these figures, more projects continue to be announced.

Presented during an event held at Rosewood Hotel on 10 October, the reported drop is due to the partial closer of Sovanna Shopping Centre for renovation, leaving the total supply in the market at around 300,000 square metres.

Despite the sharp drop, the retail sector also saw 2,500 square metres of new stock coming from the The Point Community Mall in terms of net leasable area. In addition, five new retail projects were announced during the quarter, adding 69,000 square metres into the community mall and shopping mall segment.

Over the quarter, average rents remained stable with the community mall segment seeing an upward adjustment of 3.3%, standing about US$24.5 per square metre per month.

Mr James Hodge, Director of CBRE Cambodia, said although the number is high, it is a good sign for the retail sector.

“It [the drop] is just a cycle where shopping malls have to redevelop in order to stay fresh and relevant to consumers; it is a good thing that older stock goes through this process,” he said.

Mr Desmond Sim, Head of Research, CBRE South East Asia, said the Cambodia retail sector holds great opportunity but said developers need to adopt themselves well with the changes in technology to stay competitive in the market.

“You need to keep this under consideration, on what kind of retail and how are you going to deliver retail to the market because you [Cambodia] are a young population, you’re not going to drive the old thing to the market,” he said.

Apart from the retail sector, the report also highlights changes in the condominium, office, and landed property sectors.

 

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