Experts project stability and growth in Cambodia’s property market

Bright spots include commercial, hospitality, and residential sectors.

Experts believe Cambodia’s property market is poised for growth, given its stability amidst a construction slowdown, low rents, and rising prices.

Bright spots in the market include the commercial, hospitality, and residential sectors.

According to CBRE, the commercial office sector supply will reach 1.12 million sqm by the end of 2024 and grow to 1.34 million sqm by 2025.

Additionally, office occupancy improved from 61.8% to 65.7% in the third quarter. In the same period, rental rates for Grade A offices declined by over 5% to an average of $25 per sqm.

CBRE said landlords in the market are offering more flexible leasing terms and incentives to attract and retain tenants.

Unlike the commercial sector, new project launches in the residential sector have significantly slowed, with only five new landed property projects in 2024 compared to nearly 90 launches per year between 2019 and 2022.

Whilst the condominium market remains active, new supply continues to lag behind previous levels.

CBRE, however, said investors may gain from reduced new launches by increasing occupancy rates and enhancing returns.

Meanwhile, the hotel sector is seeing a modest rise in four-star and five-star room supply, with 9,800 and 4,200 rooms, respectively, marking a 2% increase since 2023.