Covid-19 Recovery, Onset of Housing Projects Bring Retail Property Growth in the Capital
Over the past year, Phnom Penh saw nine (9) new commercial developments and corresponding retail properties enter the market, which brought the total retail space in the city to 613,000 sqm.
Included among these commercial developments were the entrance of 99 brands popular worldwide, such as H&M, OVS, GNC, and Routine. New malls such as Aeon Mall 3 along Hun Sen Boulebard, Chip Mong 271 Mega Mall, and several community malls also entered the horizon last year.
In total, the new projects added over 200,000 sqm. of retail space in the city.
Compared to 2019, the last pre-pandemic year which saw 73,000 sqm. of retail space added, these latest figures show a 179% increase.
It is interesting to note that the majority of the nine (9) developments had been put on hold from earlier years, with one going as far back as the 2010s.
According to Chin Daluch, valuation and advisory manager of real estate firm CBRE Cambodia, the high number of launches can be attributed to the Kingdom’s effective covid-19 management which led to the relatively early reopening of the country compared to other nations.
Meanwhile, Sam Soknoeun, president of the Global Real Estate Association, posited that the deluge in new commercial projects is a direct result of the recent upturn of huge residential developments as the companies behind them also ensured there would be an ample supply of retail hubs, entertainment destinations, and dining spots to cater to new residents.
Though these may appear to be direct improvements for the market, Daluch pointed out that the retail sector is bound to encounter a surplus in supply, with growing inflation and interest rates detrimental to those renting or planning to rent some of these business spaces.
She warned that the general market situation thus may remain unchanged or even deteriorate as the dust continues to settle on all that the pandemic wreaked on the Kingdom and the rest of the world.