Cambodia

Real Estate Highlights

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H2 2024 Edition Knight Frank’s half-yearly review of market trends in the Cambodia knightfrank.com.kh/research
real estate market
 Contents Page
1

Economic Snapshot
Cambodia

Cambodia 1
Economic Snapshot
3

PhnomSector
Office Penh

Phnom Penh 3
Office Sector
5
PhnomSector
Retail Penh

Phnom Penh 5
Retail Sector
7

PhnomSector
Hotel Penh

Phnom Penh 7
Hotel Sector
9

Phnom Penh
Serviced Apartment Sector

Phnom Penh 9
Serviced Apartment Sector
11
Phnom Penh Sector
Condominium

Phnom Penh 11
Condominium Sector
13

Phnom Penh
Landed Housing Sector

Phnom Penh 13
Landed Housing Sector
15

Phnom Penh
Industrial Sector

Phnom Penh 15
Industrial Sector

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Economic Snapshot
In 2024, Cambodia’s economy
continued to expand, primarily driven
LY HAKIM,
ASSOCIATE DIRECTOR,
RESEARCH & CONSULTANCY
by strong external demand that
revitalised its exports. While various
“Cambodia's economic growth in
sectors demonstrated differing levels of 2024 has expanded at a pace
performance, the overall resilience of similar to last year; however, the
construction and real estate sectors
the economy highlights its potential for are undergoing a correction.”
future growth and opportunity.

Recent Economic Between January to December, a 29.1 per cent decrease compared
Cambodia experienced a 54.5 per with 2023, mainly due to reduced
Performance
cent increase in Chinese tourists, residential investment.
The International Monetary Fund
totalling 769,775 arrivals, making
(IMF) forecasted that Cambodia's
them the third largest source of According to the World Bank report,
economy would grow by 5.5% in
tourists. credit sharply decelerated as housing
2024, an increase of 0.5 percentage
development activity stalled. Credit
points over 2023, supported by a
In 2024, the value of approved growth fell to 3.4% year-on-year in
robust rebound in exports and
projects under the Qualified August 2024, the lowest in 14 years,
tourism arrivals surpassing pre-
Investment Project (QIP) scheme down from 7.7% in August 2023.
pandemic numbers.
increased to US$2.44 billion, up 89.4
per cent from US$1.28 billion in 2023.
Cambodia’s exported products, Economic Outlook
Foreign direct investment (FDI)
valued at $23.93 billion in the first 11 According to World Bank forecasts,
projects reached US$1.13 billion, a
months of 2024, represented a 16.8 this year’s economic growth is
24.3 per cent increase, while
per cent increase from $20.50 expected to reach 5.3 per cent, up
domestic investment surged to
billion during the same period last from 5.0 per cent in 2023, primarily
US$1.31 billion, up 244.4 per cent.
year. Key sectors contributing to driven by tourism, services and
this growth included garments, goods exports.
Inflation has been declining since it
footwear, bicycles and agricultural
peaked at 7.8 per cent in June 2022,
products such as rice, rubber and Over the short term, Cambodia's
which was the highest level in 13
bananas. The United States real GDP growth is set for a positive
years, primarily due to global food
remained Cambodia's largest export shift, projected to reach an
and oil price shocks. In September impressive 5.5 per cent in 2025 and
market, with $9 billion in trade,
2024, Cambodia's Consumer Price 2026, signalling a promising
followed by Vietnam’s $3.2 billion
Index (CPI) showed a decrease, economic outlook.
and China’s $1.6 billion.
falling to 0.8 per cent, compared to
3.8 per cent in the same month of Despite ongoing improvements, the
Cambodia's tourist international
2023. economy faces risks, such as
tourist arrivals were projected to
reach 6.7 million, surpassing pre- weaker-than-expected global
Excessive investment in the property demand due to rising debt, high
pandemic levels and significantly
sector has led to continual borrowing costs and an unexpected
boosting the travel industry.
corrections in the housing market. slowdown in China. Considering the
This has caused a decline in the global economic landscape,
The border countries Thailand and
approved permit value for real estate including Trump’s presidential
Vietnam remained the top source of
development projects. In the first return, Cambodia could present
international arrivals, with over 1.9
eight months of 2024, approved both challenges and potential
million and 1.2 million tourists,
property development projects opportunities in 2025.
respectively.
totalled US$3.3 billion—

Cambodia Real Estate Highlights H2 2024 Page 1

 Cambodia Economic Snapshot

Economic Indicators
H2 2024
Size Population GDP Growth
181,035 Km2 15.6m 5.5% (2024f)
(2019 Census) IMF forecast
Figure 1: Gross Domestic Growth Forecast Figure 4: FDI Inflow by Key Indicators
between 2024 and 2025f

8%

7%

6%

5%

4%

3%

2%

1%

0%
IMF WB ADB AMRO NBC

Figure 2: Trade Balance, (US$ million) Figure 5: Moving Average Consumer Price Index and
Inflation Rate (Year-on-Year Change)

Exports Imports Trade Balance

Figure 3: Capital Value of Approved Residential Figure 6: Top Tourist Generating Countries (2024)
Construction by types (2019 - 2Q 2024)

Cambodia Real Estate Highlights H2 2024 Page 2

Office Sector
The slight increase in new supply prompted landlords to focus
on retaining existing tenants whilst offering attractive
incentives to attract new tenants, boosting occupancy rates.
Despite ongoing challenges, the net take-up rate improved
during H2 2024 and the overall average Phnom Penh
occupancy rate increased by two percentage points y-o-y.

SUPPLY & DEMAND Phnom Penh's Grade A office stock

As of H2 2024, supply growth for rose to 234,483 sq m NLA in H2 2024,
the office sector decelerated an increase of 42% from the last three
significantly with an increment of years ending H2 2021. In the existing Three office buildings, namely Maline
5.5% from H2 2023; three projects supply of centrally-owned and Office Park, Hattha Tower and KLK
Tower, were completed during the
added 51,441 square metres of Net stratified offices, 47% is Grade B, 29% second half of 2024 and contributed
Lettable Area (NLA) to the existing is Grade C and 24% is Grade A. 51,441 sq m of net lettable area (NLA)
supply. to the existing supply.
The majority of office buildings
New office completions slowed in continued to be located within the
2024. Over the past two years, Central Business District (CBD). In the As of H2 2024, the cumulative supply
annual supply growth was recorded second half of 2024, the CBD of Phnom Penh’s overall office space
at 5.9% in 2023 and 5.5% in 2024, stood at 1,015,380 sq m of net lettable
continued to hold a dominant market
area (NLA), a y-o-y increase of 5.5%
marking the lowest figures of the share, with its ratio compared to over the second half of 2023.
last decade. Suburban at 80:20.

Maline Office Park, Hattha Tower Stalled office projects that have been
and KLK Tower brought 51,441 sq m Over the next three years, the supply is
delayed or wholly cancelled will
projected to increase to 1,557,098 sq m of
of NLA to the existing stock and allow existing stock to be absorbed net lettable area (NLA), representing a 53%
pushed the cumulative Phnom into the market. increase from the existing stock.
Penh office supply to 1,015,380 sq m
of NLA, representing a y-o-y Knight Frank forecasted a similar
increase of 5.5% over the second figure during H1 2024, with an
half of 2023. additional 541,717 sq m NLA of office
stock expected to come online by 2028,
With a growth in net take up and the
The existing supply of office space leading to a total cumulative office deceleration of new supply during H2
in Phnom Penh was divided as supply of approximately 1,529,098 sq 2024, the overall average occupancy rate
follows: 73% centrally owned and m of NLA, if projects complete as increased by two percentage points to
61.4% compared with the corresponding
27% stratified offices. scheduled. period in 2023

Figure 7: Distribution of Existing Office Supply Figure 8: Cumulative Supply By Year and Grade (2015 - Post 2027f)
by District (H2 2024)

Cambodia Real Estate Highlight H2 2024 Page 3

 Phnom Penh Office Sector

Grade-A spaces will dominate total timeline showcases the OUTLOOK

supply by 2028 with upcoming commitment to timely delivery and In contrast to the residential sector,
office towers setting new standards readiness for growth in the office which is expected to continue to face
with a focus on common spaces, sector with anticipated handover challenges during 2025, the office
amenities, modern designs and dates set for 2025 and 2026, market is poised for stabilisation in the
prime city centre locations. respectively. This timeline upcoming year.
showcases the commitment to
timely delivery and readiness for As the domestic economy continues to
Between 2025 and 2028, if projects
growth in the office sector. expand in 2025, the year ahead is
stay on schedule, 88% of new
showing positive signs for commercial
office space will be Grade A,
real estate in terms of net take up.
placing pressure on older Grade A The overall occupancy rate indicated
Flexible negotiation terms will be crucial
buildings, while 12% will be Grade signs of improvement during H2
for landlords to retain occupancy.
B. Notably, there are no plans for 2024, but rental rates recorded a
However, as a result, rental rates for
Grade C office projects in Phnom decline compared to the previous
office space will remain under pressure,
Penh. year, suggesting that the market
leading to more room for negotiation in
remains heavily price sensitive.
a tenant favourable market.
In terms of future supply, an
additional 158,406 sq m of NLA is During the fourth quarter of 2024, Cambodia's GDP is expected to grow by
expected to be delivered to the the overall occupancy rate for office 6.0% in 2025 according to the ADB.
office stock in 2025. spaces—comprising centrally Regionally, Cambodia will continue to
owned and strata title offices—was benefit from an influx of foreign
61.4%. This marks a two-percentage investment and many new companies
249,626 sq m of NLA will be
point increase compared to the entered the market during 2024,
delivered in 2026 and the
previous year. requiring office space to set up HQ
remaining 133,686 sq m of NLA
operations in the Kingdom. This trend is
will be online in by 2028, adding
PRICES & RENTAL expected to continue into 2025.
541,717 sq m to the existing
supply. Although advertised rents remained
Despite the above, ongoing global
stable, the actual transacted rents
macroeconomic and geopolitical
continued on a downward trend.
Several commercial banks have headwinds remain a constant threat to
This reflects a strategic approach to
significantly contributed to the both local and global economic growth,
attract and retain tenants in the
office sector during the past few directly and indirectly impacting the
current market.
years by constructing their HQ real estate sector in Cambodia.
buildings, including Sathapana
Tower, Wing Tower and the The new office supply rose Furthermore, with several stalled
recently completed Hattha Tower. moderately in the second half of projects expected to resume in 2025,
2024, but the average rent fell. higher vacancy rates are expected over
Grade A offices ranged from US$15 to the medium term as new supply is
J-Trust Bank and FTB are absorbed into the market.
US$25 per square metre per month,
progressing well in their
Grade B from US$10 to US$17 and
construction, with anticipated
Grade C started from US$6
handover dates set for 2025 and
(excluding service charges and
2026, respectively. This
taxes).

Figure 9: Supply and Demand of Office Space (2010 – Post 2027f) Figure 10: Average Occupancy Rate by Quarter
(1Q2019 - 4Q2024)

Cambodia Real Estate Highlight H2 2024 Page 4

Retail Sector
During H2 2024, the retail sector in Phnom Penh continued to
encounter significant challenges, prompting landlords to adapt
by offering greater flexibility with their vacant spaces and
strategically diversifying their tenant mix.

SUPPLY & DEMAND The majority of the retail space in

In H2 2024, no significant large-scale our monitored basket is located in
retail developments entered the suburban districts, accounting for 61%.
supply; only one project was added, This is primarily due to the presence of
namely Riverlight, comprising Aeon 2, Aeon 3 and Chip Mong Mega As of the end of H2 2024, the retail supply
in Phnom Penh reached 870,520 sqm of
mainly F&B stores. Mall 271. In comparison, the City
NLA, indicating a 3% increase compared
Centre (CBD) holds 39% of the retail to H2 2023.
space, mainly consisting of small-scale
With the nominal growth in retail
neighbourhood centres.
space during H2 2024, the retail
sector saw no significant changes There we no new retail completions
due to the delayed completion of during H2 2024. Sen Sok had the
larger anticipated projects. highest share of the supply at 28%,
followed closely by Meanchey at 23%.
The retail space per capita was
In H2 2024, Phnom Penh’s retail Chamkarmon accounted for 16%, 7 recorded at 0.35 sq m.
supply was recorded at 870,520 sq Makara represented 10% and Daun
m of net leasable area, distributed Penh comprised 8%. The remaining
supply was distributed among Toul
across 60 retail malls.
Kork, Bueng Keng Kang, Chbar Ampov,
Chroy Chongvar, Russey Keo and Over the next three years, the total retail
Riverlight was the only retail Porsenchey. space supply will reach 1,151,159 sq m of
project to open during the second NLA, assuming all monitored projects are
completed as scheduled. This equates to a
half of 2024, adding approximately As of H2 2024, retail space per capita 32% increase over the current supply.
5,880 square metres of net lettable for Phnom Penh was estimated at 0.35
area. The project is in Koh Norea, sq m per person, with approximately
an emerging riverfront satellite city 2.5 million population in Phnom Penh.
developed by OCIC. This area
After a decade-long boom, the retail Despite efforts by retail landlords to
boasts scenic waterfront views of
landscape in Phnom Penh has become increase flexibility in their spaces, the
the Mekong River and features overall occupancy rate has fallen to 64.5%,
increasingly challenging. With retail
newly constructed infrastructure, space per capita increasing from 0.06
down 3.5 percentage points from the
second half of 2023.
making it an appealing destination. sqm in 2017 to 0.35 sqm in 2024,

Figure 11: Distribution of Existing Retail Space Figure 12: Cumulative Supply of Retail Space (2010 - 2027f)
by District (H2 2024)

Cambodia Real Estate Highlights H2 2024 Page 5

 Phnom Penh Retail Sector

combined with a significant reduction This trend is poised for substantial OUTLOOK
in consumer spending, the retail sector growth in the medium term as Despite the recent recovery in tourism
continues to grapple with the evolving Cambodia's socio-demographics and a positive trend in the overall
landscape. improve. Consequently, the economy, the retail sector in Phnom
Kingdom is emerging as a good Penh continues to face significant
If all projects complete as scheduled, the
opportunity for major F&B retail challenges.
retail space is estimated to reach
approximately 1.2 million sqm of NLA brands.
by 2027. Thus, the retail space per capita In the short term, the retail sector is
will increase to 0.43 sq m per person at To maintain and drive occupancy, poised to face recovery challenges,
the end of 2027. landlords are offering more mainly due to the retail oversupply
flexibility and are diversifying glut, as well as the global
In view of the of the above, the their tenant mix. macroeconomic outlook weighing
upcoming supply is mainly led by small- down on consumer sentiment.
scale community malls to complement
The average occupancy rate fell to
residential housing development.
64.5%, marking a decline of 3.5 Given this challenge, we anticipate
The majority of the existing supply is percentage points compared with increasing vacancy rates alongside
dominated by purpose-built shopping the corresponding period in 2023. minimal movement within
malls, comprising 67%, community shopping malls. However, this
malls at 20%, retail podiums at 9% and PRICES & RENTAL scenario presents a significant
cash & carry wholesale and strata retail H2 2024, retail rents in both the opportunity for landlords to
at 2% each. Suburban and City Centre areas innovate by diversifying their
declined due to the lower occupancy tenant mix and strategically
Regarding demand for retail space, we
rates and reduced consumer repositioning their retail malls,
continue to see new international spending. whilst new retailers can take
retailers enter the market. Food,
advantage of competitive rents.
beverage and entertainment retailers
In the second half of 2024, average
play a crucial role in shaping the
rents in prime shopping centres The retail sector is shifting to e-
Phnom Penh retail market and ranged from US$18.00 to US$28.00 commerce due to changing
continue to dominate the retail spaces.
per square metre per month of net consumer habits, which will impact
leasable area (NLA), while rents in physical retail footfalls. Landlords
secondary-grade retail malls varied must adapt by offering lower base
Figure 13: General Purpose Existing between US$10.00 and US$22.00 rents plus a percentage of sales,
Retail Developments (H2 2024) per square metre per month of aligning with global trends affecting
NLA. developers' returns.

This figure reflected a decrease of As Cambodia's economy continues

between 5% and 12% annually, to recover, the GDP growth for 2025
indicating that landlords are is projected to be between 5.5% and
adjusting to retain existing tenants 6.3%, leading Cambodia to increase
and offering significant incentives disposable income and consumer
to attract new tenants. spending power. Over the medium
to long term, the retail landscape in
Phnom Penh is likely to flourish,
featuring a rise in international
brands and ongoing expansions.

Figure 14: International Retailers by Figure 15: Phnom Penh Supply and Demand of Retail Space (2010 - 2027f)
Region of Origin (H2 2024)

Cambodia Real Estate Highlights H2 2024 Page 6

Hotel Sector
A new addition to the Luxury segment, the five-star Shangri-la
hotel, made its grand debut and another is set to follow in early
2025. With tourist arrivals now surpassing 2019 numbers, hotel
operators are looking to the future potential of the Cambodian
tourism sector.
SUPPLY & DEMAND In the city centre, most hotels are
Several newly operated hotels located in the Daun Penh District,
increased the Phnom Penh hotel which accounted for 38% of the total
supply by 7% y-o-y. supply. This was followed closely by The Shangri-La soft-opened its 303 key, 5-
star hotel to welcome guests in Q4 2024.
Chamkarmon District at 23% and the
In the second half of 2024, several Boeung Keng Kang District at 11%. The
new hotels opened in Phnom Penh, remaining hotel supply is distributed
offering a diverse range of as follows: Chroy Changvar District at
accommodation from 3-star to 5- 7%, Sen Sok District also at 7%, 7 The existing supply reached
approximately 16,000 rooms as at the
star. Most of these hotels are Makara District at 6%, Toul Kork end of H2 2024, a 7% increase from last
centrally located in the city. District at 5%, Por Senchey District at year.
2% and Mean Chey District at 1%.
The Shangri-La, situated in
Chamkarmon District, features 303 As we look towards the future, the
luxurious 5-star rooms to welcome luxury market in Phnom Penh is
guests. Nearby, in the Sangkat experiencing significant growth, with
Chaktomok area of the Daun Penh more international brands entering
District, the 4-star Caravan Hotel the Kingdom.
by EHM also opened, offering 94
The future supply in Phnom Penh
rooms. Several new-to-market global hotel comprises 58% Luxury and Upper
brands have signed agreements with Upscale hotels.
In addition to these, WH Hotel and developers to open flagship hotels in
Mahasakor Inn opened their doors Phnom Penh that will contribute
in the Chamkarmon and Daun toward Cambodia’s accommodation
Penh Districts, respectively. WH offerings. The future supply of hotels in
Hotel provides 52 rooms as a 3-star Phnom Penh will reach 19,300
hotel, while Mahasakor Inn offers Looking at the future supply, the rooms by 2028; a 2% increase since
2023
92 rooms, also categorised as a 3- majority (58%) will be Luxury and
star hotel.
Figure 16: Existing Supply by District (H2 2024)
The recent additions have raised
the total hotel supply in Phnom
Penh to 15,972 keys, reflecting a 7%
increase from last year. Notably, a
substantial portion of this hotel
supply is located in the city centre,
which accounts for 83% of the total
rooms available.

The Phnom Penh hotel supply

consists of 43% Midscale and
Economy, 32% Upscale and Upper
Midscale and 25% Luxury and
Upper Upscale.

Cambodia Real Estate Highlights H2 2024 Page 7

 Phnom Penh Hotel Sector

Upper Upscale. Midscale and brands, the accumulative hotel Government initiatives included
Economy hotels will contribute supply in Phnom Penh will lowering the cost of e-Visas,
22% of the total, while Upscale and increase to approximately 19,300 conducting marketing campaigns
Upper Midscale hotels will account rooms, a y-o-y increase of 2 and investing in tourism
for 20%. This diversified hotel percentage points. This growth infrastructure.
supply is indicative of the growing indicates a strong demand for
tourism sector in the city. accommodation in the city, Cambodia launched a marketing
driven by increasing tourism and campaigns "The Smile of Cambodia"
In line with the significant rise in business activity. in Siem Reap province and
the number of Luxury and Upper "Celebrating Cambodia" in Phnom
Upscale hotels, Wyndham Hotels & OCCUPANCY & AVERAGE Penh. The government has also
Resorts, one of the world's largest ROOM RATE invested in infrastructure
hotel franchisors, is set to open its According to the Ministry of development that improved
312 key hotel in 2025. Tourism, the average hotel connectivity within Cambodia and
occupancy rate increased to 77.8% has opened up eco-tourism
This new addition is expected to during 2024, although this does opportunities.
enhance the hospitality landscape not reflect the market research
of Phnom Penh and cater to the conducted by Knight Frank. This positive trend in tourism is
growing demand for premium Average room rates started from expected to continue both short-term
accommodations in the region. US$125 for Luxury and Upper and long-term as the government
Upscale segments, between remains dedicated to further
A significant portion of future US$60 and US$125 for Upscale enhancing the visitor experience.
hotel developments will be and Upper Midscale segments With ongoing investments and
concentrated in Daun Penh and from $20 for Midscale and strategic initiatives, Cambodia aims
District, accounting for 45% of the Economy segments. to position itself as a leading
total supply. Boeung Keng Kang destination in the region, fostering
District will follow with 26%. OUTLOOK not only economic growth through
Additionally, Chamkarmon Cambodia welcomed around 6.7 tourism but also cultural exchange
District is expected to have 13% of million international tourists in and global connectivity.
the hotel supply, while the 7 2024, surpassing pre-pandemic
Makara District and Sen Sok levels. Distribution of Existing Hotel by
Classifications
District will represent 11% and 5%,
respectively. This strategic With the completion of the new
Classification % Distribution
distribution of hotel developments Siem Reap International Airport
highlights the growing demand for alongside several Government
accommodations in these areas. initiatives to drive tourism, Luxury & Upper Upscale 25%
international tourist arrivals
Upscale & Upper Midscale 32%
With newly operated hotels and finally surpassed pre-pandemic
the incoming international numbers.
Midscale & Economy 43%

Figure 17: Cumulative Supply of Hotel Rooms (2010 - Post 2027f)

Cambodia Real Estate Highlights H2 2024 Page 8

Serviced Apartment Sector
The tourism rebound combined with the increasing number of
expatriates returning to Phnom Penh for job postings, ignited
an uptick in demand for serviced apartments.

SUPPLY & DEMAND Knight Frank has standardised the

As of the second half of 2024, the categorisation of serviced apartments
Phnom Penh serviced apartment into three tiers: International,
sector experienced growth as both Business and Economy Classes.
92% of the existing supply is located in
tourists and newly-posted Currently, 56% of the supply falls the City Centre districts of Phnom Penh.
expatriates. under the Business Class, while 27%
was classified as International Class
The Grace Residence highlighted and 17% as Economy Class.
this demand as larger 3-bedroom
units were quickly rented by C-level As illustrated in figure 18, Boueng
executives. Keng Kang District had the highest
56% of the existing supply falls under the
supply at approximately 31%, followed
Business Class category.
The Grace Residence is located in by Chamkarmon District and Daun
Daun Penh District, an area known Penh District, which accounted for
for its historical significance, 21% and 20%, respectively. The other
providing convenient access to districts include Toul Kork at 11%,
various amenities and attractions as 7 Makara at 9% and Chroy Changvar at
well as the capital’s central business 4%. The remaining districts are Sen
district. Sok and Mean Chey, representing 3% The future supply is estimated at
and 1%, respectively. approximately 1,800 units.
The recent additions took the total
existing supply of serviced In terms of future supply, the serviced
apartments to 8,400 units as at the apartment sector continued to attract
end of H2 2024, reflecting a 2% international brands with The Ascott
year-on-year growth. Most of these Group leading the way. Future projects
The supply of serviced apartment is
units (92%) were located in the City include Citadines Vue Aston and projected to reach 10,259 units,
Centre districts of Phnom Penh. Somerset Diamond Bay Gardens. indicating a 22% growth by 2027.
This growing inventory reflects the
rising demand for quality Notably, the projected future supply is
accommodation in the capital. expected to be approximately 1,800
Figure 18: Serviced Apartments by Grade (H2 2024) Figure 19: Serviced Apartment Distribution by Geographical
Location (H2 2024)

Cambodia Real Estate Highlights H2 2024 Page 9

 Phnom Penh Serviced Apartment Sector

units, with most of this supply US$13 per square metre per families, this may drive demand
located in the City Centre month, whilst rate for Economy over the medium to long-term.
districts, which will account for class units was
69% of the total future supply. recorded at US$7 per square Additionally, with expatriates being
Similar to the existing supply, metre per month. a main source of demand for
Business class units make up 56% serviced apartments, the entrance of
of the total supply, while Whilst there was an increase in several international companies
International class units demand for serviced apartments setting up headquarters in Phnom
represent 27% and Economy units during H2 2024, the average Penh is a positive sign for the sector.
represent 17%. overall occupancy rate
remained low, at 54%, in part Cambodia is an emerging market in
In terms of geography, the future attributable to the growing the region, creating opportunities
supply will predominantly be supply of condominiums with for investment which continues to
located in Daun Penh District, landlords now offering house attract foreign direct investment
accounting for 33% of the total. This keeping services to attract (FDI) as special economic zones
will be followed by the Sen Sok and tenants. (SEZs) expand across the nation.
Chamkarmon districts, representing These developments are drawing
23% and 22% of the future supply, Despite increasing demand, the international investors and
respectively. The remaining supply incoming supply of both professionals to Cambodia, thereby
will be distributed among Chbar serviced apartments and increasing the demand for serviced
Ampov District at 8% and Beoung condominiums is expected to apartments.
Keng Kang District at 7%, whilst keep both occupancy and rental
Toul Kork District will account for rates at lower rates during the As the market continues to evolve,
7% of the future supply. short and medium-term. investors and developers should
focus on enhancing the quality of
Both the existing and future supply OUTLOOK services and amenities offered in
are contributing to an accumulative 2024 international tourist arrivals these apartments to meet the
total of approximately 10,259 finally surpassed pre-Covid levels, changing needs of residents. By
serviced apartment units, indicating attracting 6.7 million international adapting to market trends and
a 22% growth by 2027. This arrivals, driving demand for both maintaining a strong value
significant growth is driven by hotels and serviced apartments. In proposition, the serviced apartment
factors such as rising tourism, an effort to increase the average sector is well-positioned for
business travel and a preference for length of stay of tourists, the sustained success in the coming
flexible living arrangements among government and key stakeholders years.
professionals and expatriates. are collaborating to increase the
number of tourism offerings,
OCCUPANCY RATE & RENTAL organise various festivals and
Unit rates remained stable during events as well as introducing
H2 2024; the average rate for initiatives such as pedestrianising
International class serviced Phnom Penh’s popular riverside
apartments was recorded at area during weekends. With
US$20 per square metre per serviced apartments typically
month, Business class units at appealing to longer stay guests and

Figure 20: Cumulative Supply of Serviced Apartments (2009 - 2027f)

Cambodia Real Estate Highlights H2 2024 Page 10

Condominium Sector
The improving sales performance in the Mid-tier and Core
segments, along with accelerated construction starts, are
indicating early stages of a rebound in the condominium market,
albeit at considerably lower prices than pre-Covid levels.

SUPPLY & DEMAND Chamkarmon continued to dominate

In H2 2024, the improving sales market share, increasing from 20% in
performance in the Core and Mid- H1 2024 to 22.0% in H2 2024, while
tier segments, alongside the Sen Sok dipped from 20% to 19%. Five new condominium projects were
increasing number of project Mean Chey slightly declined from 16% completed during H2 2024, adding 4,606
launches indicated improving to 15%, whereas Chroy Changvar and units to the existing supply.
confidence in the condominium Toul Kork both rose from 9% to 10%,
sector in prime central locations. while Boeung Keng Kang fell slightly
from 9% to 8%. This was followed by 7
A total of 4,606 new units were Makara (7%). The remaining supply H2 2024 recorded a total existing
completed in H2 2024, compared was spread across Russey Keo, Chbar condominium supply of 57,772 units
with 3,118 units in H1 2024. Ampov, Porsenchey. Whilst across 132 projects.
However, many projects due for Chamkarmon continued to dominate
completion by 2024 did not market share, Chroy Changvar saw
complete as anticipated, rolling over notable growth as several new projects
into 2025. Despite the delayed The Mid-tier and Core segments remained
were completed in 2024, while other the dominant categories in the market,
completion, construction progress districts remained relatively stable or representing 58% and 22% of the total
gathered pace in line with increasing experienced slight declines. supply, followed by High-end (16%) and
sales performance and many Prime (4%).
international investors returning to As the real estate sector continued to
the market. experience a pricing correction, new
launches during H2 2024 were
The 4,606 newly completed units strategically focused mainly on the The stabilisation of Cambodia’s
home loan interest rates at an
were contributed by five notable Core segment. The new launches average of 8%, coupled with the
projects: Royal Platinum, Wealth included projects such as Time Square recent drops in U.S. interest rates,
Mansion, Anata Residence, Seven 8 in Toul Tumpong and Picasso 2 signals a favourable outlook for the
condominium sector. An
Residence and The Pinnacle (Picasso Sky Gemme) in BKK1. These increasing number of Cambodian
Residence. 75% of these completed launches reflected growing market buyers are investing in Mid-tier
units were Mid-tier and Core, while confidence. and Core condominiums, with
domestic demand needed for long-
25% were High-end. term sustainability of the sector.

Figure 21: Distribution of Existing Figure 22: Cumulative Supply (2009 - Post 2027f)
Condominium Supply by District (H2 2024)

Cambodia Real Estate Highlights H2 2024 Page 11

 Phnom Penh Condominium Sector

Unit completions in H1 2025 are upcoming brands like Wyndham, sales, particularly in the Mid-tier and
projected to add approximately Mercure, Radisson and Vignette Core segments, is underway, the
6,090 units. Notable projects Collection (attached to LIXIN CEO rental market has outpaced sales
nearing completion, included Tower, The Flora Suites, The recovery, responding to improving
LIXIN CEO Center, Vue Aston, City Pinnacle Residence and Odom demand driven by shifting living
View, Urban Village (H Building) projects, respectively). This kind of preferences and the growing number
and a few others, reflecting a strategic approach not only of young couples. Rental prices have
steady increase in unit completions elevates the appeal of these consistently stabilised with minimal
relative to H2 2024. properties but also reinforces their fluctuations over the past year.
premium pricing in prime
In H2 2024, the launch sales rate locations, ensuring long-term OUTLOOK
(the first quarter after launching) value for projects and residents Cambodia's home loan interest rate
reached 29%, the highest since H1 while securing their competitive has stabilised at an average of 8%.
2019, when it was 30%. Two factors edge in the current and future Given the recent decline in U.S.
drove this positive performance. market. interest rates, there is no expectation
On the supply side, reputable and of future rate increases affecting
mature developers were able to tap Despite developers employing Cambodia's interest rates, which
into the domestic market more various tactics such as significant presents a favourable outlook for
effectively. On the demand side, price reductions, traditional flash property investment.
domestic buyers showed increased sales discounts, extended down
confidence in the sector and were payment instalments, guaranteed Chamkarmon District, along with the
attracted to the competitive pricing rental returns (GRR), flexible Mid-tier and Core segments and
and strategic locations offered by financing options, diverse unique domestic buyers, will continue to lead
developers in the Core segment. unit offerings and even mirroring and influence the market. Following
Buyer confidence, affordability and competitors’ pricing and launch Chamkarmon District, Mean Chey
desirable locations played a crucial strategies, the core drivers of sales District and Chroy Changvar District
role in driving demand, reflected success remain reputable are projected to rank among the top
the significant improvement in developers, strategic locations and three key contributors to the future
first quarter sales. clear market positioning. It is also supply pipeline.
crucial to recognise that the key
Reputable High-end developers factors driving effective market Figure 24: Phnom Penh Condominium
Launch Sales Rate (H2 2017 – H2 2024)
have solidified their market positioning include fair pricing,
position and achieved strong sales strategic site selection, a clear
rates by going beyond simply target customer focus and
positioning their projects in prime thoughtfully designed properties.
locations and providing a high
GRR. Their key strategy also lies in PRICES & RENTAL
diversifying the range of facilities Both condominium sales and
offered, which significantly rental performance have shown
enhances the appeal and value of signs of growth amidst the ongoing
their properties. Beyond traditional market correction. Developers who
amenities like swimming pools and have maintained their properties
gyms, they are increasingly well have been better positioned to
incorporating more unique and protect unit prices from significant
creative features such as running depreciation and have effectively
tracks, libraries, indoor golf, rock leveraged both sold and unsold
climbing walls, indoor games and units in the rental market. While
more. the recovery in condominium
Figure 23: Future Supply by Year and Classification (2025f – Post 2027f)
Furthermore, certain High-end
condominium projects have
introduced distinctive value
additions to strengthen their
market positioning. In addition to
retail spaces, these developments
feature branded names and hotel
affiliations, ranging from existing
brands like Picasso, Somerset,
Oakwood and Shangri-La (attached
to Picasso, Skylar, One Park and
The Peak projects, respectively) to

Cambodia Real Estate Highlights H2 2024 Page 12

Landed Housing Sector
Despite the widespread slowdown in landed housing construction,
certain developers continued to make notable progress with several
developers enhancing their projects by integrating a stronger sense
of community and incorporating well-being themes into their
existing nature-inspired infrastructure.
SUPPLY & DEMAND expanding housing supply.
With the completion of many
projects now going block by block In H2 2024, developers adopted a
rather than phase by phase, 2,063 more targeted approach, focusing on An additional 2,063 units from 10 existing
developments were added to the current
units were added to the market completing block-by-block rather that supply in H2 2024.
across 10 existing projects, bringing the traditional phase-by-phase
the total supply of landed housing in construction. This approach
Phnom Penh to 93,573 units across prioritised the timely delivery of
314 projects as of H2 2024. This purchased units. Despite challenging
reflected a 2.3% HoH increase market conditions, a total of 2,063 As of H2 2024, the existing supply
reached 93,573 units across 314
compared to H1 2024 and an 8.2% units were completed, primarily developments, representing a growth
YoY increase from H2 2023. consisting of shophouses and terraced of 2.3% compared to H1 2024 and
houses, with a smaller proportion 8.2% compared to H2 2023.
In H2 2024, Sen Sok led in supply being semi-detached and detached
share at 20%, followed by Dangkao houses.
at 17% and Kamboul at 11%. Chroy
Changvar, Chbar Ampov and Russey Notable developments contributing to Mid-tier units accounted for 58% of
Keo each accounted for 10%, while these construction progress and existing supply, followed by Core (32%)
Mean Chey contributed 9%. Por ongoing completion included Mekong and High-end units (9%).
Senchey and Prek Pnov had lower City (Phase 1), The Prestige Shophouse
shares at 6% and 4%, respectively. in Orkide The Botanic City, Dragon
Chamkarmon and Daun Penh Land 598, Prince One Tropica
reported minimal shares at 1% and Residence, Golden Park The Natural An additional 1,120 landed housing units
2%, while Toul Kork, 7 Makara and are expected to enter the market by 2025.
(Phase 1), B&V Mansion in OCIC Chroy
Boeung Keng Kang collectively Changvar, Samraong Village (Phase 1),
accounted for 2%. Lay Kong Emerald Residence, Phnom
Penh Thmey Radiant Park and a few
The market segments demonstrated others. These projects demonstrated The current slowdown and delay in
notable shifts highlighting the construction and a shift from
resilience by maintaining construction speculative investments to real
evolving market. The Mid-tier momentum, with some prioritising the demand are signaling developers to
segment experienced the most completion of sold units and others adopt strategic pricing, financing
growth, increasing its market share option and review unit allocation.
focusing on desirable unsold units.
to 58% (54,869 units), up from 57%
Figure 25: Existing Landed Housing Supply by District (H2 2024)
(52,582 units) in H1 2024. This
growth can be attributed to a rising
demand for Mid-tier housing
options. Conversely, the High-end
segment maintained its stable
position at 9% of the market,
reflecting a neutral change. The Core
segment, however, declined slightly
to 32% from 33%.

These trends underline the market's

focus on balancing affordability with
quality amidst Phnom Penh's
Cambodia Real Estate Highlights H2 2024 Page 13
 Phnom Penh Landed Housing Sector

Despite the generally low sales construction completion during 5% down payment and an interest-free
rate across all landed housing the past decade, reflecting the payment schedule extending up to 36
developments, a few High-end slowdown in in the market and months.
developers remained confident in low sales rates. In the longer term,
launching three new projects from 2026 onward, an estimated MARKET OUTLOOK
during H2 2024. Notably, the 7,600 units are projected to enter Despite the current slowdown and delay
reputable developer Peng Huoth the market. Of these, 88% will in construction progress for landed
introduced its new High-end cater to the Mid-tier and Core housing, purchasing trends have shifted
projects, Eco Poli 2 and The Star segments, while 12% will target the from speculative investments to real
demand. This shift is prompting
Natural (Phase 2), contributing at High-end segment. Notably, next
developers to adopt more strategic
least 260 units to the market. year, developments such as
approaches to pricing, financing options
Additionally, ThaanJaya WorldBridge Sport Village, Prince and the allocation of their unit types.
Properties launched Borey One Tropica Residence, Golden
Chulassa, featuring High-end villa Park The Natural (Phase 1), Additionally, developers are expected to
types. Both developers Mekong City (Phase 1), Norea incorporate even more community-
strategically positioned their Square (shophouses) in Norea City focused and nature-inspired themes into
High-end units within and Meanchey Residence will their projects.
thoughtfully designed primarily contribute to the supply
With Cambodia's home loan interest rate
infrastructure, seamlessly pipeline in 2025.
averaging 8%, no anticipated increase in
incorporating community and
US interest rates, developers adopting
nature-inspired themes. PRICES more targeted market strategies and the
Between H1 2024 and H2 2024, continued government tax exemptions,
In late 2024, the government property prices tended to stabilise, there are positive signs, however, the
announced the implementation of with secondary market prices majority of the existing supply is priced
property transfer tax exemptions generally being lower than those in significantly what most Cambodian
to enhance accessibility to the primary market. Meanwhile, the buyers can afford and it will take some
homeownership. These rental market in H2 2024 continued time for the market to recover.
exemptions will apply to to show signs of stabilisation, mainly Figure 27: Future Supply Growth
properties priced below driven by living needs and (2025f – Post 2027f)
USD70,000 and to first-time employment-related demand within
homebuyers acquiring properties high-density locations.
valued up to USD210,000, to be in
effect until the end of 2025. The Despite generally low sales across
primary goal of these measures is landed housing developments, units
to reduce the financial burden priced at USD 200,000 or below
associated with purchasing a continued to attract the highest level
home while stimulating the real of inquiries and showed improved
estate market. By supporting both sales performance compared to
buyers and developers, this previous years. This trend is likely
initiative aims to contribute driven by the affordability sought by
positively to the broader economy. Mid-tier and Core buyers.

By 2025 and 2026, the completion Amidst low sales performance in

of landed housing supply in Cambodia's landed housing market,
Phnom Penh is projected to add certain developers introduced more
approximately 1,120 and 930 units, competitive financing options in H2
respectively, one of the lowest 2024 to boost sales. These included a
Figure 26: Cumulative Supply of Land Housing Units Figure 28: Future Supply by Year and Classification
(2009 - Post 2027f) (2025f - Post 2027f)

Cambodia Real Estate Highlights H2 2024 Page 14

Industrial Sector
Cambodia’s industrial sector was a standout performer and as
of H2 2024, the country attracted fixed-asset investment
amounting to US$6.9 billion, representing a 40% increase
compared to 2023, according to data released by the Council for
the Development of Cambodia (CDC).

SUPPLY & DEMAND 120 diverse factories spanning the

Special Economic Zones (SEZs) in garment and non-garment
Phnom Penh and surrounding areas manufacturing sectors. The overall supply of Special Economic was
continued to attract significant FDI recorded at 705 hectares within four
The last development in Phnom Penh operating SEZs in Phnom Penh and Kandal
during 2024. Phnom Penh and province as of H2 2024.
was the Kerry WorldBridge Special
Kandal province are key hubs for
Economic Zone, a joint venture
industrial activities, boasting a
between Kerry Logistics and
robust presence of SEZs and WorldBridge International, Developed
industrial parks. on a land area of 63 hectares. However, The number of approved investments
recently, they have only been in Cambodia was recorded at 414
projects during 2024, indicating an
As of H2 2024, four Special operating the duty-free logistics increase of 52% compared to 2023.
Economic Zones (SEZs) were Worldbridge SME cluster. Meanwhile, investment capital of FDI
operating in Phnom Penh and increased by 40% Y-o-Y at US$6,900
The other two developments were in million in 2024 from US$ 4,920 million
Kandal province, contributing an in 2023.
Kandal province, including the
aggregated 705 hectares, namely
Sovannaphum Special Economic Zone,
Royal Phnom Penh SEZ (357
developed on a site land area of 204.5
hectares), Kerry Worldbridge SEZ (63 hectares along National Road 1 in
hectares), Sovannaphum SEZ (205 Kandal Province. Cambodia’s International trade in goods
hectares) and Goldfame Park Shun indicated a deficit of US$ 7.4 billion during
SEZ (80 hectares). Other operational industrial estates, 2022.
Canadia Industrial Park, Vattanac
Phnom Penh Special Economic Zone Industrial Park, Samrong Thom SEZ,
has positioned itself as the leading Chhun Hong Industrial Park, Y Seven
II, Grand Twin, Le Urban Eco Park, According to the World Bank estimation,
SEZ development in Phnom Penh, - Cambodia’s industry is expected to grow by
MSQM Park and Su Zhou Industrial
-with a land area of 357 hectares. It 8.6 per cent in 2025, supported by better
Park delivered in around 422 hectares
serves as a dynamic hub for trends of global demand and higher
to existing supply in Phnom Penh and confidence of investors.
economic activity, featuring Kandal Province.
Figure 29: Supply of Cambodia SEZs & Industrial Parks (2005-2026f) Figure 30: Number of Newly Approved
(by land area in hectares) Factories / Investments by Province
in 2024

Cambodia Real Estate Highlights H2 2024 Page 15

 Phnom Penh Industrial Sector

Royal Special Economic Zone II was investment reflects the growing OUTLOOK
announced, comprising 120 hectares appeal of Cambodia as a destination Despite rising domestic and global
of development land and it will be for international companies seeking inflationary pressure, the industrial
recorded in future monitoring in to expand their presence in and logistics industry remained the
infrastructure development and legal Southeast Asia.
key driver for Cambodia’s economy.
processing. The WBID SME Cluster
will also be distributed over OCCUPANCY RATES & PRICES
approximately 6 hectares in Kandal In the short to medium-term, the
Despite the global market
Province. If all monitoring industrial improvement in Cambodia’s
headwind, Cambodia's industrial
estates are completed as scheduled, industrial sector is expected to
land price and leasehold rents
the supply of industrial estates will continue into 2025, supported by the
have remained relatively
jump to 1,223 hectares in the next surge in manufacturing exports.
three years. unchanged, a testament to the
strength of the manufacturing
According to estimations provided
With the economy showing signs sector.
by the World Bank, Cambodia's
of an upward trajectory, mainly
industrial sector is expected to
within the industrial and logistics Industrial estates in Phnom Penh
experience significant growth of 8.6
sector, foreign direct investment have performed strongly, with the
per cent during 2025.
(FDI) to Cambodia increased by take up rate of land recorded at 62%,
40% in 2024 compared to 2023. Kandal Province was recorded at
This anticipated growth is attributed
43%. Meanwhile, the average factory
to positive trends in global demand,
According to the CDC, the CDC rental ranged between US$2.5 and
which are likely to enhance export
approved 414 investments in 2024, US$3.5 per sqm in Phnom Penh and
representing a 54% increase opportunities and stimulate local
US$2 and US$3.5 per sqm in Kandal
compared to 2023. The total production. As the international
province. The price premium for
investment capital reached $6.9 market recovers and expands,
long-term leasehold land was
billion, an increase of $1.97 billion, or Cambodian industries could benefit
between US$80 and US$120 per sqm
40%. from increased investment and
within a leasing period of 50 years.
innovation, leading to a stronger
Among these approved projects, a economic outlook for the country.
significant portion was concentrated Royal Group made a significant
in the industrial sector, which move in the industrial sector by Figure 31: Export Statistics by Top 5
accounted for 69% of the total. This acquiring a 45.09% stake in Phnom Countries (Jan 2024 - Nov 2024)
focus on industrial investment Penh SEZ. This strategic investment US$ Million
highlights a strategic emphasis on positions Royal Group as the
enhancing infrastructure, boosting
company's largest shareholder, a
manufacturing capabilities and
status it has held since late 2021.
promoting economic growth in
critical areas. The increase reflects With this acquisition, Royal Group is
favourable market conditions and solidifying its influence and
the potential for job creation and leadership in the industry,
innovation within the industrial enhancing its commitment to
realm. fostering growth within the region's United Viet China Japan Canada
economic landscape. States Nam
Across 414 approvals in 2024 by
location, Phnom Penh ranked third
at 13% in terms of the number of
approvals and remained the Figure 32: FDI Inflow by Key Indicators
country’s central economic hub,
US$ Million
while Kampong Spue is the most
concentrated area for newly
approved investments during 2024 at
22%, followed by Svay Rieng (17%),
Preah Sihanouk (12%), Takeo (10%),
Svay Rieng (3%), Takeo (3%),
Kampong Cham (3%) and the
remaining 1% are located in Kratie.

The notable movement is that a

Japanese Toyota assembly plant is
slated to start operations in the
Phnom Penh Special Economic Zone
as the latest major foreign company
to invest in the country.

With Toyota's established reputation

for quality and innovation, the

Cambodia Real Estate Highlights H2 2024 Page 16

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