ASEANEWS-BIZ.REALTY | PHNOM PENH: Pricing strategies contradict market realities in Cambodia real estate sector | Capacity-building workshop on housing
‘Fearless Forecast’ Report by CBRE Cambodia highlight this trend as one among the major challenges faced by Cambodia’s real estate sector in 2025.
“The retail sector faces similar headwinds, with occupancy rates at 61.8 percent, substantially lower than the global standard of 90-95 percent for healthy retail markets. Despite these occupancy challenges, prime retail spaces continue to command rates of $22.6 per square metre,” the report pointed out.
Meanwhile, as per the report, the office occupancy rates stand at 65.1 percent well below the global benchmark of 85-90 percent while maintaining premium rents at $27 per square metre.
However, the report noted that the condominium sector maintains competitive pricing when considered on a regional basis. “Luxury condominiums in Bangkok average $6,500 per square metre while mid-range units in Phnom Penh typically command $2,200 per square metre.”
It called for a careful monitoring of the condominium sector with an upcoming supply of 3,200-plus units. “The serviced apartment segment’s addition of 240-plus units appears measured with Grade A rents at $19.3 per square metre.
“This sector shows particular promise as market research indicates that successful serviced apartments typically achieve occupancy rates between 88 percent and 92 percent in prime Asian locations, suggesting room for growth in Cambodia’s market.”
The report highlighted the indicators, which suggested that the country’s real estate sector is navigating a crucial phase of market maturation. “With office and retail occupancy rates significantly below international benchmarks – where healthy markets typically see vacancy rates of only 10-15 percent for office and 5-10 percent for retail space – stakeholders may need to implement strategic adjustments to improve market fundamentals.”
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Kim Kinkesa, CBRE Cambodia Managing Director, told Khmer Times two weeks ago that the real estate and condominium market in 2025 closely mirrors the situation in 2024, with a limited number of new projects being introduced.
“Many of the projects still on the market continue to attract customers, primarily those developed by experienced and reputable companies in this sector.
“For new development projects, 2025 presents significant challenges, particularly for first-time developers entering the market, Kinkesa said, adding that, building trust and establishing a strong presence in such a competitive environment requires both experience and a proven track record.
“Projects that are currently performing well and maintaining strong sales tend to be located in city centres, where demand remains high. Additionally, developments spearheaded by seasoned developers with a solid reputation are more likely to succeed,” she said.
Sreekanth Ravindran / Khmer Times
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Capacity-building workshop on housing finance and mortgage-backed securities held in Phnom Penh
Earlier this week, a capacity-building workshop on “Housing Finance and Mortgage-Backed Securities” took place, aimed at enhancing awareness of housing finance needs and models, as well as perspectives on mortgage-backed securities.…
The workshop was co-organised by the Securities and Exchange Regulator of Cambodia (SERC), the Asian Development Bank (ADB), the ASEAN Secretariat (ASEC), and the Japan Housing Finance Agency (JHFA) at the Non-Bank Financial Services Authority (FSA) building.
Attendance included the management and officials of the SERC, representatives from ASEC, the Real Estate Business and Pawnshop Regulator, the Social Security Regulator, Cambodia Securities Exchange, Cambodia Association of Securities Firms, the Association of Banks in Cambodia, commercial banks, fund management companies and trustees, as well as expert speakers with extensive experience in housing finance and mortgage-backed securities from the ADB, Nomura Research Institute Thailand, and JHFA, totalling 108 attendees.
“As we move forward, we envision a securities market that is not only dynamic and resilient but also a key driver of sustainable economic growth in the housing sector,” stated Sou Socheat, Delegate of the Royal Government and Director General of the SERC. “By introducing innovative instruments like mortgage-backed securities, we aim to empower investors, enhance access to affordable housing finance, and contribute to the broader development of our economy and society.”
Takahiro Yamakawa, Deputy Director of the Regional Financial Cooperation Division, Ministry of Finance, Japan, noted that through the Japan-ASEAN Financial Technical Assistance Fund, Japan has supported the bond market development in Cambodia for the past 20 years under the ASEAN+3 Bond Markets Initiative (ABMI).
“This important workshop will assist Cambodian regulators and market participants in learning from the development paths of housing finance and mortgage-backed securities in Japan and ASEAN,” remarked Takahiro Yamakawa.
Satoru Yamadera, Advisor of ADB, underscored that housing finance is becoming increasingly important, especially for the growing middle-income and low-income households in urbanising Asia.
“ADB, as the secretariat of ABMI, will continue to assist Cambodian regulators in diversifying financial products such as housing loans and mortgage-backed securities in the future,” he stated.
This workshop also showcased case studies related to Japanese housing finance and mortgage-backed securities in ASEAN countries such as Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, highlighting best practices and regional applications for financial innovation. AKP
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