A view of retail spaces at Aeon Mall. Supplied
As of the end of Q3 2024, total retail space in Phnom Penh stood at nearly 770,000sqm, while the average occupancy rate for the quarter stood at over 58%, reflecting a slight decline compared to Q2, according to CBRE Cambodia.
The Phnom Penh Market Insights Q3 2024 report by CBRE noted that retail spaces in the capital spanned over 669,000sqm. The occupancy rate decreased from 58.7% in Q2 2024 to 58.3% in Q3. The decline has continued since 2019, particularly during the Covid-19 pandemic peak, when occupancy rates fell below 55% in 2021.
Rental prices across the four types of retail spaces – shopping malls, community malls, retail podiums and prime high streets – have dropped between 0% and 5.2% compared to Q1 2020.
CBRE Cambodia managing director Kinkesa Kim told The Post on October 17 that the sector, including the retail market, has seen no significant improvement since 2019. She said the recovery of the industry depends on both global and domestic economic growth.
"For the real estate sector to recover to pre-2019 levels, economic activities such as tourism and investment must improve, boosting people's incomes. Generally, I believe Cambodia’s real estate sector will need at least one or two more years to recover," she added.
Despite the ongoing challenges, Kim expressed some optimism, noting that certain economic indicators, such as investments and property transactions, are showing early signs of recovery.
Sam Soknoeun, president of the Global Real Estate Association and chairman of SAM SN Group, stated that despite the end of the Covid-19 pandemic, ongoing geopolitical conflicts and armed disputes between several countries continue to negatively impact global economic growth.
He explained that the country’s real estate market, which relies heavily on international investments, is being affected by the weak global economy.
“In terms of buying, selling and renting real estate in Cambodia during the first nine months of 2024, there has been no significant change compared to the end of 2023,” he said.
The “Socio-Economic Trend Report for Q2 2024” by the Ministry of Economy and Finance revealed that from January to June 2024, the Ministry of Land Management, Urban Planning and Construction approved a total of 1,642 projects across the country, marking an 11% decrease compared to the same period in 2023, which saw 1,849 projects.
