Cambodia Real Estate Highlights H2 2024
- Andrew Millar
- Jun 30
- 3 min read
Updated: Jul 1
Knight Frank Cambodia
Report Description
Sector: Real Estate, Architecture, Engineering & Construction
Preamble
CBRE Cambodia’s Real Estate Highlights H2 2024 provides an in-depth overview of Phnom Penh’s property market performance across the second half of 2024. The report covers the office, retail, condominium, landed property and hospitality sectors, offering data-driven insights into occupancy trends, rental dynamics, supply pipelines and investment sentiment.
Summary
The Phnom Penh real estate market continued to show signs of cautious recovery in H2 2024, with modest gains in some segments and subdued performance in others. While overall economic stability, infrastructure investment, and improving tourism helped shore up demand, oversupply in the residential and office sectors continued to exert downward pressure on rents and occupancy.
The office market saw limited new supply but remained competitive, with landlords adopting flexible strategies to retain tenants. Retail was a mixed picture—footfall and occupancy improved in prime locations, though rental levels remained under pressure due to continued tenant caution. The condominium market faced persistent challenges, with increased supply pushing prices slightly lower and extending the average sales period.
In contrast, the landed property sector—particularly borey developments—benefited from end-user demand and relatively stable pricing. Hospitality experienced the most notable rebound, with occupancy rates and ADR (average daily rates) improving thanks to a steady influx of international visitors, particularly from China and neighbouring ASEAN countries.
Highlights
Office Sector: Supply remained largely unchanged at 813,000 sqm, with average occupancy around 61%. Rents declined slightly in Grade B and C properties, while Grade A buildings held steadier due to better amenities and location.
Retail Sector: No major completions were recorded in H2 2024. Prime malls saw increased leasing activity, particularly from F&B and health & wellness brands. Ground-floor rents in prime areas were relatively stable.
Condominium Sector: Total supply reached over 40,000 units, with nearly 4,000 new units entering the market in H2. Sales rates remained sluggish, particularly in mid- and high-end segments, with average prices continuing a gradual downward trend.
Landed Property: Borey developments retained strong local buyer interest. Mid-tier projects saw consistent transaction volumes, driven by affordability and perceived value for money.
Hospitality: Hotel occupancy rates climbed to around 62%, supported by rising international arrivals. New developments focused on boutique and lifestyle offerings, particularly in central Phnom Penh and key tourist destinations like Siem Reap and Sihanoukville.
Outlook
The real estate sector in Cambodia is expected to continue its uneven recovery into 2025. The hospitality and landed property segments are likely to remain the most resilient, supported by demographic trends, tourism recovery, and urbanisation. However, oversupply in the condominium and office sectors will require careful recalibration by developers. Future growth will depend on broader macroeconomic stability, investor confidence and regulatory support, including clearer land-use planning and financing frameworks. Foreign investor interest is slowly returning, especially in retail and hospitality, though full recovery is contingent on stronger regional economic momentum and ongoing infrastructure development.
Knight Frank Cambodia Real Estate Highlights Series
Knight Frank’s Cambodia Real Estate Highlights is a biannual series (H1 and H2 editions) that delivers a comprehensive snapshot of Phnom Penh’s real estate markets, covering office, retail, hospitality, serviced apartments, condominium and landed housing sectors. Each report offers up-to-date data on supply, demand, occupancy, rental rates, and pricing trends, along with sector-specific insights such as pipeline forecasts, demographic drivers and investment sentiment. Designed for developers, investors, and policymakers, this research series helps stakeholders interpret market corrections, understand shifting sectoral dynamics, and anticipate future developments in Cambodia’s evolving real estate landscape.
About Knight Frank Cambodia
Knight Frank Cambodia (established in 2008) is Cambodia’s branch of the globally recognised real estate consultancy network Knight Frank LLP. Based in Phnom Penh, the firm offers a full suite of services, from residential and commercial agency, advisory, valuations and property management to capital markets and research, serving both local and international clients. Positioned as 'locally expert and globally connected', they emphasise long-term relationships and personalised, clear advice to help clients find properties that align with their needs: residential, retail, office, logistics or hospitality. Operating from Canadia Tower, Knight Frank Cambodia is known for research-led thought leadership.