What are the best locations for Houses and Condominium Development in Phnom Penh?
As a result of the rapid development of real estate in Phnom Penh, every location in the capital has attracted huge investments from Cambodian and international investors who are willing to build projects such as factories, markets, schools, and especially Borey (housing and villas development) & Condominiums to meet the current demand of the real estate market in Cambodia.
This situation has caused the price of land in and around Phnom Penh to increase significantly in value, especially with locations adjacent to public and private development projects. But currently, what are the most sought-after locations if you want to build Borey and Condos projects in Phnom Penh?
Sok Kimeng, managing director of Sovanna Phum Real Estate, said: “If you want to build real estate projects in Phnom Penh, the location along and around Hun Sen Boulevard in Meanchey District is the most interesting because it is the emerging area with high population density combined with growing residential and commercial activity. This area is recommended for residential real estate investment because of the presence of the Japanese Aeon Mall 3 and its proximity to the new Phnom Penh International Airport.
Mr. Kimeng added, “Sen Sok district is another potential area for Borey construction in Phnom Penh, due mainly to the improved infrastructure development and lower land prices compared to the neighboring Toul Kork district, which is now considered the CBD of Phnom Penh. “
According to the Knight Frank Cambodia H2 2020 report, despite the heavy impact of the Covid 19 pandemic on the real estate sector, housing sector activity has still remained positive, indicated by 12 new projects launched in the second half of 2020.
In the second half of 2020, Phnom Penh had a cumulative ground housing supply of nearly 64,000 units. The highest concentration of housing was in Sen Sok district with 23 percent (14,690 units), followed by Dangkor 17 percent, Russey Keo 12 percent and Meanchey district 11 percent.
In terms of condominium construction, the most interesting place is not the outskirts of Phnom Penh. On the contrary, it is still within the Phnom Penh CBD. Mr. Kimeng said that the areas of Boeung Keng Kang I and Diamond Island remain the most sought after for condominium projects. If you own land and want to build apartments, the chances of return on investment are high in the long run.
That said, due to the negative impact of the Covid 19 pandemic on the Cambodian real estate sector, the condominium market had a difficult quarter, with two-thirds of planned construction postponed until early 2022.
In the CBRE Cambodia Q3 2021 report, only two real estate projects were completed: The Peak, located in Tonle Bassac commune in Chamkarmon district, and The Gateway in Toul Kork district, were completed in the third quarter of this year, while the remaining four projects were postponed due to construction supply chain disruptions, labor shortages, and cash flow challenges caused by lower-than-expected sales rates.
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