Strategic Realignment: CBRE Cambodia Director Urges Developers to Reshape Approach for 2024

• 16 January 2024
• Local News
• 1507 Views

Marc Townsend, CEO of CBRE Cambodia, delivered a thought-provoking message at the “Fearless Forecast 2024” workshop, challenging real estate developers to shift their focus from new projects to optimising existing inventory. Speaking at the Oakwood Premier Hotel in Phnom Penh, Townsend emphasised the need for a strategic reorganisation of products and services to align with evolving market demands.

“Rather than investing in something new, developers should revisit their existing inventory and rearrange their products and services based on this to fulfil the new emerging market demand,” suggested Marc Townsend, highlighting a critical paradigm shift in a real estate strategy.

The “Fearless Forecast 2024” workshop, a pivotal event in the real estate sector, attracted over 100 participants from diverse institutions engaged in Cambodia’s real estate landscape. The session not only provided a comprehensive overview of the Cambodian economy but also delivered detailed analyses of the real estate market, setting the tone for informed decision-making in the industry.

Townsend underscored the importance of adapting to market dynamics and advised developers to prioritise managing their inventory. “Real estate developers should look at the design of their existing services and products to meet market demand rather than introduce new projects for 2024,” he emphasised, signalling a strategic shift to enhance resilience in the evolving real estate sector.

CBRE’s latest real estate market outlook, presented at the workshop, highlighted emerging oversupply trends as both a challenge and an opportunity. Townsend noted that oversupply could be a gold mine for astute investors, with market prices reflecting a diversity of opportunities, ranging from hotels and apartments to office buildings. This increased variety has led to more accessible entry points for investors compared to earlier years when the market was characterised by inflated prices.

In the context of the construction sector, the latest real estate update revealed a recovery in investment, albeit at a much lower rate compared to pre-global crisis levels. As of November 2023, over 3,000 investment projects in the construction sector were approved, totalling approximately US$6 billion. In contrast, 2020 saw nearly 5,000 projects with an investment exceeding US$10 billion, representing a 54% decrease.

• Analysis