A view of high-rise buildings in Phnom Penh. Real estate insiders predict heightened demand for industrial property, while apartments will suffer from an oversupply. Supplied
Industry forecasting for the Cambodian real estate sector suggests that the coming year will see similar conditions to those experienced in 2024, with prices likely to remain steady.
However, there is a silver lining, with demand for some types of real estate, particularly industrial sites, expected to improve.
In response to questions from The Post during the “Fearless Forecast 2025” event organised by real estate industry giant CBRE Cambodia on the morning of January 14, Kinkesa Kim, managing director of the firm, tipped that demand for residential, office buildings, shopping malls and commercial centres will improve slightly.
However, she believed prices are likely to stay the same. She added that she expects the most positive note to be an increased demand for real estate in the industrial sector.
“I believe that industrial sites will see growth ahead of other sectors and will have a long-term future. This trend is not just for Cambodia, but also for neighbouring countries like Vietnam, Thailand and Malaysia,” she said.
She noted that foreign investment has gradually picked up since the end of 2024, with increased demand for land to build factories and special economic zones, among others. She attributed this growth to ongoing tensions between global economic powers, particularly the US and China.
Sam Soknoeun, president of the Global Real Estate Association and chairman of the SAM SN Group, commented that both 2024 and 2025 saw significant demand for real estate solely for industrial purposes, such as land for building factories, industrial parks, special economic zones or warehouses.
“The real estate situation in 2025 could be better than 2024, particularly in terms of land for the industrial sector. However, for residential real estate, it may remain the same as in 2024, largely due to an oversupply,” he added.
The real estate sector in 2025 will not yet recover to the level seen in 2019, he warned.
To help stimulate the growth of the real estate sector, On December 31, 2024, the Ministry of Economy and Finance announced specialised tax exemptions for the year of 2025.
The new regulations aim to encourage increased purchases from development companies, including residential complexes or condominiums.
