Expert: Industrial & Logistics Sectors Most Attractive Market for 2022 Despite Uncertainty

• Kongleaphy Keam
• 14 January 2022
• Local News
• 2246 Views

CBRE Cambodia Managing Director James Hodge said that the industrial and logistics sectors will be the most attractive market in 2022 although other real estate sub-sectors and the overall market remain under pressure and uncertainty.

Mr Hodge added that due to external factors caused by the pandemic, even though Cambodia has already reopened the country, the return of foreign investors remains ambiguous and unpredictable.

“As such, we forecast that 2022 will remain subdued in terms of pricing and rental performance. However, activity levels among international investors may again pick up, with demand Hodge.

“I believe that with the fundamental improvements we are witnessing in Cambodia’s infrastructure, the industrial and logistics markets will be the most attractive next year,” added.

A large-scale Japanese retailer Aeon Mall (Cambodia) Co Ltd has recently entered the logistic market with a plan to establish a multi-functional logistic centre in Sihanoukville by 2023. (Read more)

Similarly, the industrial sector or factories establishment in particular, also remain robust. In the first 11 months of 2021, the Council for the Development of Cambodia (CDC) approved a total of 107 private investment projects outside SEZs with a total investment of US$1.7 billion. (Read more)

Apart from these two sectors, other sub-sectors of the real estate market, such as condominiums, offices and apartments, are still under pressure, waiting for the return of foreign investors. However, the borey market, especially the medium and affordable price boreys, remain in a strong position.

“Well-located and well-priced parcels on the edge of urban areas are likely to fare well for the development of affordable housing projects aimed at the rising lower-middle class. Traditional sectors for foreign investment, including the mid-range and high-end condominium market, are likely to remain pretty sluggish, at least for the first six months of the year,” Mr Hodge.

“Leasing in the commercial markets will likely pick up following the realignment of rents that is ongoing, but the volume of supply to be delivered will mean widespread rental growth will not return for some time,” he added.

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