CBRE: Phnom Penh Retail Supply Increases by 43% in Q2 2018

• 4 August 2018
• Local News
• 2156 Views

Naro Mall

Retail real estate supply in Phnom Penh was recorded to have risen by 43% in Q2 of 2018 compared to Q1, according to the latest report by CBRE Cambodia.

During this quarter, three retail complexes have been completed and opened their doors to the public including the second Aeon Mall Sen Sok, Prince Central Plaza and The Park. Among them, AEON Mall Sen Sok alone has added approximately 85,000 square metres to retail space based on gross lettable area.

Besides these three significant malls, the Midtown Mall, the Bridge and the Olympia Mall are also scheduled to be completed soon which will add an approximate 55,000 square metres to the retail stock based on net lettable area before the end of 2018.

According to a previous report by CBRE, in additional to the above mentioned malls, there will be at least three others malls expected come online across Phnom Penh by the end of 2018 including The Parkson Phnom Penh along Russian Blvd (70,200sqm), Noro Mall community mall in Boeng Keng Kong I (10,000sqm), and the Downtown 93 Community Mall nearby Chbar Ampov bridge along Monivong Blvd (3,800sqm).

In addition, there are also several more malls currently under construction and expected to be completed in 2019, namely Orkide the Royal Mall, Diamond Plaza, Tropic Mall, and Eco Mall (Read more).

Despite the supply growth in Q2, vacancies in the retail sector have dropped sharply to below 10% as of Q2 2018, driven by almost full occupancy at both AEON malls, according to the report. Despite this drop, quoted rental prices during the second quarter have been stable compared to the previous quarter.

The same report also predicted more small and medium size local F&B retailers targeting space within modern retail complexes such as Aeon Mall over the more traditional model of occupying standalone shophouses. CBRE also expects to see a gradual growth of this trend in the future.

• Projects Development