Condominium market may be in high demand next year

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Phnom Penh: Experts in the Cambodian real estate sector predict that during 2021, the mid-range condominium market in Phnom Penh may outpace the affordable housing market due to changing price conditions along with new delivery mechanisms. Bank loans on condo purchases are becoming more lenient.

CBRE Cambodia Country Director An Sothyta said on the evening of July 30, 2020 that the Cambodian people are now more aware of the benefits of investing in the condominium sector. There is also a need to stay in real condominiums, which, unlike in previous years, mostly only foreigners.

“The growth in the demand for condominiums is due to a number of factors that, in addition to the actual demand for accommodation, there are still price fluctuations, ease of purchase by installments, especially the change in the new mechanism of some private banks,” she said. “Can provide loans for purchase.”

Ms. Ann Sothyta stated that a few years ago, most of the houses in the suburbs cost no more than $ 5-60,000, but now the price of a house is only $ 7-80,000, almost impossible to find. It is a bit far from the city and for Villa Queen, in some projects, the lowest price is 200,000, but only 7-80,000 dollars can buy a condo in the second area of ​​Phnom Penh. .

Another reason for the increase in demand for condominiums is that, in addition to the fluctuations in the average housing prices in the suburbs, there is a real need for urban living and access. Investment return opportunities are another important element. It is a new mechanism of lending from banks for the purchase of condominiums, which in the past were only for the purchase of housing, but now some banks have captured the market share of customers by providing condominium loans.

Currently, about 10-20% of Cambodians are living in high-end condominiums and about 30% are living in affordable condominiums, most of which are in developed and commercial clusters such as Toul Kork. .

Rental rates for high-end condominiums are around $ 15 per square meter, for intermediate-level condos are around $ 12 per square meter, and for lower-average levels can be around $ 8 per square meter. Months) where these three types of prices compared to the price of the apartment, the price of renting a condo is more reasonable because the apartment does not focus on services more than the condo, which only has the price of the room and the cost of management services. This was confirmed by Ms. An Sothyta, Country Director of CBRE Cambodia.

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