PHNOM PENH: Real estate service company and investment firm, CBRE, has released its third quarter insights on the Cambodian property market. CBRE held a presentation for its Q3 2022 Market Insights at the Sathapana Bank Building in Phnom Penh on Thursday, 6 October.

CBRE Managing Director, Lawrence Lennon, said that the market currently has a mixed outlook, however, comparing quarter on quarter insights, the situation is improving.

“We have a mixed outlook, and that’s just the reality of the context at the moment," he said. "We have some headwinds coming in the global macroeconomy, I’m sure nobody is surprised to hear it. But on a Q on Q basis things are certainly improving, I would say.”

He added, “When we are looking at office occupancy for instance we’ve seen a slight upwards movement, which is actually a surprise and very positive to see.”

Speaking further with Lennon on the improvements that might be seen in the final quarter, he stated that the outlook is still mixed, however, this is not something that is affecting Cambodia alone, rather this is a trend seen on a global economic level.

“It’s quite a mixed outlook, and that’s the state of the global economy as it is right now," he said. "Whether it’s over in China, or whether it’s going on in the West, it all impacts us.”

Lennon added that tourism is now becoming a major point of focus point again in Cambodia, as the country has reopened its doors and made it easier for foreign tourists to enter. He mentioned that this quarter saw more hotels reopening, as well as several new hotels being established.

He said high-end hotels have still not reached full capacity in the country, but on the lower-end, hotels are now seeing a better rate of capacity with the return of backpackers. Siem Reap is also highlighted as the favorite destination for visitors, with the most growth in the tourism market.

Overall, however, Lennon clarified that tourism is still down by about five million people compared to 2019.

CBRE’s report also highlights Boeng Keng Kang as the hottest property district in Phnom Penh, followed by Sen Sok, Toul Kork and Chamkarmon.

Additionally, the office sector in Cambodia has grown from the second quarter, with 64% centrally owned occupancy, and new launches still to come with mixed use developments.

The retail market also saw three new malls launched with K Mall in Dang Kor district, 60M Community Mall in Mean Chey District and the Chip Mong 271 Mega Mall also in Mean Chey district.

The condominium sector saw no new launches or completions. The average rental quote also dropped by 0.3%.

You can read CBRE's full report on Q3 2022 Market Insights here:

https://images.cbre.com.kh/2022/10/20221006_Market_Insights_Q3_2022_EVENT_Final_For_Circulation.pdf