PHNOM PENH: Even though the retail market did not experience significant growth during the pandemic, a large number of businesses are launching online activities, causing rental operations to slow and becoming a concern for sale transactions.
CBRE hosted a panel discussion on Q-Commerce and Real Estate 2022 earlier this week. Participants’ experts reflect on the interaction between the real estate sector and the Cambodian market’s online business revolution.
Mr. Lawrence, Managing Director of CBRE Cambodia, spoke positively about the Cambodian retail market, citing research data. According to CBRE, despite Covid-19, occupancies rates continue to rise in 2020, 2021, and 2022 with respective growth rates of 46%, 47%, and nearly 71%.
Despite a significant increase in transactions during and after the pandemic, he claims that the majority of customers prefer to shop offline. Consumers prefer direct purchase services in both Asian and global markets, according to the report, because they want to see and buy the product in person and receive assistance from sales staff.
Ms. Sivhuang Lay, Senior Head of Operations at Foodpanda, believes that while Q-commerce has grown rapidly in recent years, it will have no impact on Cambodia’s rental sector. Address complications, limited coverage, and time-consuming drop-off are currently operational challenges for Q-commerce.
People are adopting technology, and online business activities will have a large impact on the retail and real estate sectors. Cambodia now has a population of 16 million people, accounting for 21% of the city’s population, as well as over 27 million mobile subscriptions and over 7 million Internet users, representing a 43% increase in total users since 2016.
She went on to say that to capitalize on opportunities, real estate developers must plan ahead of time by establishing a micro-fulfillment center with proper drop-off and standard address and power-up signal coverage.