Logo of Phnom Penh Post newspaper Phnom Penh Post - Increased consumerism points to demand for more malls




Increased consumerism points to demand for more malls

Content image - Phnom Penh Post
Aeon Mall continues to satisfy consumers shopping needs three years after opening. More malls are set to be built in Phnom Penh in the coming years. Post staff

Increased consumerism points to demand for more malls

The demand for shopping precincts has risen three percent in this year’s first quarter when compared to the same time last year, a study by Bonna Realty Group has shown.

The recently concluded study noted that the trend of shopping at malls has increased from 79 percent in Q1 of 2016 to 82 percent at the end the first quarter of 2017. However, vacant space in malls – both completed and under construction – yet to be snapped up by tenants has escalated from 21 percent to 26 percent, while supply continues to rise.

Segmented into A, B and C grades – with grade A encompassing larger malls like Aeon and the upcoming Parkson Mall – the study found that there are currently 34 malls in Phnom Penh, with category A and B developments comprising a majority of this number.

Pen Sokea, Bonna Realty’s director of evaluation, said, “The higher demand for more malls is due to several factors. These include the increase in population and disposable income, the convenience of shopping, as well as the loan interest-lowering policy of microfinance institutions.”

Most notably, he added, “The loan interest-lowering policy released by the government can help ease the people’s expense, and the convenience of instalment purchases is also sharing the influence on this demand.”

Chor Sang, CEO of Ratana Plaza Shopping Mall, said that consumer demand has shown a small, but steady, incline since the start of the year. Simultaneously, the total demand from consumers has peaked at the current 95 percent, largely thanks to the influx of people making up the increase of Phnom Penh’s population.

“The purchasing traffic will remain stable or even go up because the best-selling things in most malls are food and entertainment services,” Sang said.

Thida Ann, director of CBRE Cambodia, commented that Cambodians’ way of shopping has greatly been influenced and globalised since the establishment of Aeon Mall back in 2014.

This year will see the opening of two more mall projects – Exchange Square and Parkson Mall along Russian Boulevard.

“Because of increasing demand, the Exchange Square mall will be operational in June, and this will be another international standard mall in Phnom Penh,” Ann said.

Exchange Square, which functions more as an office tower – with 16 levels of office space – has four dedicated levels for luxury retail shops and a cinema. Initially slated to be opened at the end of last year, it will now be getting ready for its launch next month. Ahead of its opening, according to Ann, 65 percent of the retail sphere has been leased, and 55 percent of office space has been rented out.

Comparing the state of consumerism in Cambodia and neighbouring countries, Ann said, “Cambodia still needs more malls because the number of malls in Phnom Penh is still very low if compared to Thailand.”

MOST VIEWED

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • Quarantine site in north Phnom Penh inaugurated

    A four-building quarantine centre in Phnom Penh’s Prek Pnov district was formally inaugurated on January 6. The centre can house up to 500 people, according to Phnom Penh municipal governor Khuong Sreng. At the inauguration ceremony, Sreng said the municipal hall had cooperated with the Ministry

  • ‘Beware of WhatsApp fraudsters’

    The Ministry of Posts and Telecommunications warned members of the public who use WhatsApp to vigilantly guard against a new trick employed by hackers that involves the use of six-digit codes sent to potential victims via the popular messaging app. The ministry said hackers could