CBRE: Phnom Penh Retail Supply Hampered in Q1 2019

• 13 April 2019
• Property Focus
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International real estate agent CBRE Cambodia launched its Phnom Penh property market review report on 09 April 2019 which showed that retail supply was hampered during the first three months of 2019.

CBRE highlighted that retail supply was hampered due to the delay of two projects to mid-2019, reducing the supply for the quarter to 19,965 square metres of net leasable area. Meanwhile, rental prices across different retail formats saw a downward adjustment with prime space ending the quarter at US$29.4 square metre per month.

“Previous completions took a large of this supply in total, and because of that overall vacancies have dropped much lower than they would normally in smaller developments such as community malls and shophouses,” said Mr James Hewson, CBRE research & consulting manager.

With vacancy rates declining by 10%, Mr Hewson said that the trend of completion has been less in the last few quarters, creating a lack of vacancies to fill up.

However, Mr Hewson emphasised that there isn’t any alarming break for vacancy reductions because major projects are coming onto the market.

“We must see this again in 2023 when Aeon 3 is expected to be completed and all of the other large shopping mall developments from the massive Chip Mong and OCIC,” he said.

The sector also saw new the new launch of 1,870 square metres of retail space in Chief Tower.

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