Phnom Penh office and retail markets face challenges in 2024, plus more updates

For PropertyGuru’s real estate news roundup, Phnom Penh’s office and retail sectors experienced declines in rent and occupancy rates in H1 of 2024. In other news, the top three residential developers will launch 73 projects worth a combined TBH93 billion in Greater Bangkok. Lastly, Vietnam’s PM urges ministries, sectors, and localities to effectively implement the Land Law, Housing Law, and Real Estate Business Law.

Phnom Penh’s commercial office and retail markets face slowdowns in 2024

In the first half of 2024, Phnom Penh’s commercial markets faced a downturn, as global property consultant CBRE reported in The World Property Journal. The office and retail sectors experienced declines in rent and occupancy rates in H1 of 2024.

Prime office rents fell to USD27.0 per square meter, with an occupancy rate of 61.8 percent, while prime retail rents decreased to USD22.1 per square meter, with a 58.7 percent occupancy rate. The residential market also showed signs of slowing, with only two new landed property projects and three condominium projects launched during this period.

Despite these challenges, Phnom Penh offers strong investment opportunities for those who want to sink money into Cambodia’s property market.

Condominium prices in the Central Business District are competitively priced at USD2,500 per square meter, yielding an attractive rental return of 5.3 percent. The city’s investment appeal is further enhanced by its affordable pricing and the provision for freehold foreign ownership in co-owned buildings.

Thailand’s top developers to launch projects worth TBH93 billion in H2

The top three residential developers – AP Thailand, Sansiri and Supalai – are maintaining their plans to launch 73 projects worth a combined 93 billion baht in Greater Bangkok and the provinces during the second half of this year, following a strong performance in the second quarter.

Tritecha Tangmatitham, managing director of Supalai Plc, said the company plans to launch 20 new projects worth TBH27.3 billion in the second half, as projected earlier this year.

“The market was gloomy for the first 4-5 months of the year, but gradually improved from late May,” he said in a Bangkok Post report. “We are bullish about the second half due to the decline in new supply launched in the first half. Despite decreasing demand, the reduction in new supply presents a significant opportunity for us to launch new projects.”

Vietnam PM urges effective implementation of land, housing, real estate business laws

Prime Minister Pham Minh Chinh has signed an official dispatch directing ministries, sectors, and localities to effectively implement the Land Law, Housing Law, and Real Estate Business Law, all of which came into force simultaneously on 1st August, according to VietnamPlus.

To ensure that these new laws are well applied in practice, driving socio-economic development and fostering a favourable business climate for enterprises and citizens, the PM has outlined several immediate tasks in the official dispatch.

Accordingly, the Ministers of Natural Resources and Environment, Construction, Finance, Home Affairs, and Labour, Invalids and Social Affairs were instructed to urgently guide and train local authorities on the new policies stipulated in these laws and documents regulating their detailed implementation, serving the effective enforcement of these policies and integrating them into daily life. These ministries were also tasked with overseeing, inspecting, and guiding the issuance of detailed regulations as authorised by the laws and their related decrees, and reporting progress to the PM by 20th August.

The Property Report editors wrote this article. For more information, email: [email protected].