PHNOM PENH: CBRE recently held its forecast conference of 2023, releasing what is to be expected this year in real estate.

Economic indicators show that the GDP has grown by 6.2% from 2020 to 2023F, with inflation (YoY) down 6.8% in 2023F.

The price of condominiums are down from the first half of the year in 2020 to the second half of the year in 2022, falling from US $3,041 SQM to US $2,218 SQM.

Prime office rentals are also down from US $25.5 (2020) to US $22 (2022) SQM, while prime retail is holding steady.

CBRE also highlighted differences from 2019 to 2022, saying that Phnom Penh's land value is now peaking. Additionally, new retail completions are up 179%, brand entrants are up 136%, but occupancy rate is down -22%.

Regarding retail projects, 316,000 SQM are completed, while 242,000 SQM are still under construction. CBRE stressed that new brand companies entering Cambodia for the first time, and local businesses branching out, are good signs of growth and recovery after Covid-19.

New residential launches have fallen in 2022, but condominiums are currently on the rise, with a 26% growth in supply, however, sale prices are down overall.

The CBRE report also mentioned that there are a range of all-star rated hotels in the pipeline.

Read more about CBRE's 2023 forecast here: https://www.cbre.com.kh/research-center/downloads/fearless-forecast-2023/