Cambodia Real Estate Highlights, H1 2023
- Andrew Millar
- Sep 27, 2023
- 2 min read
Knight Frank Cambodia
Report Description
27th September 2023 (PDF, 15 pages)
This H1 2023 edition of Cambodia Real Estate Highlights from Knight Frank Cambodia provides a half-yearly review of economic conditions and property market trends across Phnom Penh’s key sectors.
Summary
Cambodia’s GDP is forecast to grow by 5.5% in 2023 and 6.0% in 2024, supported by tourism recovery to 1.2 million foreign arrivals in Q1 2023.
Approved FDI projects reached USD $156 million in the first two months of 2023, a 90% QOQ decline, while construction permit values climbed to USD $1.3 billion.
Phnom Penh’s office stock stands at 917,378 sqm of NLA with a vacancy rate of 41% and a 650,470 sqm pipeline heavily weighted to grade A space.
Total retail supply has reached 826,725 sqm of NLA and is projected to grow to 1,121,564 sqm by 2025, a 36% uplift, as new formats expand the city’s mixed-use and lifestyle offer.
The hotel sector added 671 rooms, taking existing supply to 14,624 keys, with a further 7,684 rooms due by 2028, supported by 2.57 million international arrivals in H1 2023.
Phnom Penh’s serviced apartment market now totals 8,258 units, with 746 units in the pipeline to 2026 and average monthly rents around USD $964 for one bedroom.
Residential markets show clear signs of oversupply, with 41,297 condominium units and 82,129 landed housing units already delivered.
About the Cambodia Real Estate Highlights Series
The Cambodia Real Estate Highlights series is Knight Frank Cambodia’s half-yearly review of market conditions across Phnom Penh’s key property sectors, including office, retail, hotel, serviced apartment, condominium and landed housing.
Each edition combines macroeconomic indicators with on-the-ground market intelligence, providing investors, lenders and corporate occupiers with an integrated view of demand, supply, pricing and pipeline risk. The series is designed as a concise decision-support tool that benchmarks historical trends, tracks new launches and supports more informed capital allocation into Cambodia’s built environment.
About Knight Frank Cambodia
Knight Frank Cambodia is the local arm of global real estate consultancy Knight Frank, part of an international network advising clients across commercial and residential markets.
In Phnom Penh, Knight Frank Cambodia provides agency, valuation, property management and research services for developers, investors, occupiers and financial institutions.
The firm combines international best practice with detailed local insight to support strategic decisions on investment, development, leasing and asset management in Cambodia’s rapidly evolving property market.
Website: knightfrank.com