The condos planned for construction in Phnom Penh from 2020 to 2023 were 53,512 units. About 59% of complete futuristic constrictions comprise the Mid-tier category while the 41% remaining units are high-end.
Because of the current surplus of completed structures in the high-end segment, the upcoming supply will primarily consist of mid-tier units. R&F City, which is being constructed on Hun Sen Blvd in Phnom Penh , is responsible for the considerable spike in the number of units to be supplied in Meanchey appears to be a significant growing location in Phnom Penh in the years ahead.
New Launch Trends By Category
High-end tier classification was about 39 %, while mid-tier classification was 61%. The locations of high-end condos launched were primarily in the following areas:
- Chamkarmon- 18 percent
- Chroy Changvar- 11 percent
- Toul Kork- 5 percent
- Boeng Keng Kang- 5 percent
- Daun Penh- 3 percent
- Sen Sok- 3 percent
- 7 Makara- 2 percent
- Meanchey- 1 percent
The locations of mid-tier condos launched were primarily in the following areas:
- Senkok- 15 percent
- Meanchey- 7 percent
- 7 Makara- 5 percent
- Toul Kork- 5 percent
- Chroy Changvar- 3 percent
- Chbar Ampov- 3 percent
- Russey Keo- 3 percent
- Porsenchey- 3 percent
- Boeung Keng Kang- 3 percent
- Daun Penh- 1 percent
- Chamkarmon- 3 percent
Market Prices and Rents
The monthly rent of high-end condos in Cambodia’s Phnom Penh is a standard for mid-tier properties, with a similar pattern. Three-bedroom rent prices have been the most steady since most new projects contain a modest number of three-bedroom apartments, while demand for family-sized and bigger units has managed to keep up with construction.
Future Of Condos In Cambodia
As per according to CBRE Cambodia’s Q1 report released on April 7, 2022, during the 2022’s first quarter, Cambodia’s condominium market stayed constant since new projects were not launched, whereas the high-end unit-kinds costs continued falling. Due to this standstill, three new market trends were observed, which are as follows:
- Consumers now have more options and power than ever, and they are more likely to seek out good deals and value. They are enticed to go for the greater unit size, higher grade, and ideal location because of the discounts.
- Many purchasers will go for finished, ready-to-move-in projects to avoid the risk of incomplete constructions more than the new ones.
- The real estate market started questioning if there would be no fresh releases in 2022, as excess difficulties persist, with the marketplace attempting to consume the old stock.
According to the reports, three projects, including M Residence in Boeung Keng Kang, The Peninsular Private Residences in Chroy Changva, and Picasso City Garden in Boeung Keng Kang, were completed in 2022’s first quarter.
Future Price Trend Of Condos In Cambodia
High-end condominiums saw a 4.1 percent drop in selling costs from the previous quarter. Meanwhile, when some locals began to migrate to the condominium market, the number of economic unit types increased by 1.6 percent.
According to the research, the overall condominiums supply is expected to reach almost 50,000 units by the end of 2022, rising by the end of 2023 to approximately 70,000 units. Prices, on the other hand, have stayed consistent, and developers remain positive about the future.
Conclusion
Real estate sector was hit the hardest in both 2020 and 2021. Since it is so reliant on international investors, the real estate market in Cambodia almost came to a halt. A few projects with foreign developers have been put on hold. Another, including local developers, has taken a break because of cash flow lack due to sales lack.
The best hope for this industry is for international investors to return. Those that want to move to the local market, need to change their price, size, and location. For Khmer residents, the condo must be located in the city center, have adequate room sizes, and be reasonably priced. Condominiums are currently the most well-known options from an investment point of view for real estate purchasers in 2022. So, you may contact the professional team of IPS Cambodia to help you get the best advice on condos in Cambodia.
