PHNOM PENH (BERNAMA) – An international real estate expert is optimistic about Southeast Asia’s property market outlook for 2025, citing strong economic fundamentals, but is wary of the incoming United States (US) administration’s uncertain trade policies that may impact the industry.
CBRE Cambodia chairman Marc Townsend told Bernama on the sidelines of the Fearless Forecast 2025 for the Kingdom’s real estate event organised by CBRE Cambodia in the capital that a multitude of factors from monetary policy, urbanisation and population growth will drive the region’s property segment.
“Across Southeast Asia, I see a lot of positives for 2025 (but) the big question mark is obviously trade. When the new US administration comes into the White House next week, (it) will look at the big trade imbalances, particularly with Vietnam and Mexico,” he said.
“Many of these (Southeast Asian) markets are interesting places because they have come out of market oversupply or interest rate cuts or have a new government such as in Thailand.
“I am confident that right from Dubai to Brisbane (Australia), particularly in Southeast Asia, markets are going to have a better year in 2025 than in 2024,” he said. The Construction and Property Magazine projects steady growth for the Asia Pacific real estate market in 2025, citing easing global interest rates and a regional gross domestic product growth of 4.4 per cent, despite China’s property market woes and international political challenges.
Southeast Asia’s growing population, expected to touch 741 million by 2035, plus rising incomes will drive the region’s property market, said the magazine.
Townsend is optimistic about the ASEAN region, with the exception of Cambodia, which he describes will face a bumpy road this year and likely to take another two years to rebound.
“My concern is in Cambodia where there is an oversupply; where there is too much construction. Compared to 2024, 2025 is going to be even more difficult.
“Other markets have been more self-regulatory, they are little more mature and their affordability is increasing and urbanisation is increasing but here (Cambodia), there is an oversupply.
“If you see the retail and office markets, there is an oversupply, rents softening but we also see the number of launches and constructions going down,” said Townsend.
