Phnom Penh Condominium Real Estate Market Overview July 2021
The Cambodian property market experienced a moment of respite in July 2021, seeing an increase in online property searches and enquiries for developments that continue to offer discounts and flexible payment terms.
This follows a June 2021 marked by the April-May lockdown of Phnom Penh.
Earlier in July, the government announced the end of its mass vaccination campaign in Phnom Penh and focused its efforts in other provinces such as Kandal, Siem Reap and Sihanoukville. The government is implementing a mass vaccination campaign for children aged 12 to 17 as part of its goal of mass immunity in major economic centres such as Phnom Penh.
However, the recent spread of the delta variant of COVID-19 prompted health authorities to impose a new curfew in the first week of August.
Sales prices for new housing developments in Cambodia remain well below pre-pandemic levels. This market continues to adjust as the pandemic situation in Cambodia continues to create uncertainty in the short term and most potential property buyers become more discerning in their investments.
In 2020, affordable and mid-range projects were popular in the local market. The change in focus of developers towards the local market has further highlighted the demand for flexible payment terms. Major developers are responding to this demand by forming partnerships with local banks to offer payment terms that are suitable for the majority of Khmer buyers.
Distribution of prices and areas of condominiums in Phnom Penh in July 2021:
MEDIAN PRICE PER SQM
MEDIAN UNIT SIZE
Most property developers in Phnom Penh continue to record comparatively low sales activity, with a few notable exceptions. PARC 21 Residence in Boeung Trabek has seen a resurgence in popularity in June-July 2021, with nearly 1 million USD in closed transactions.
According to its exclusive business partner, FazWaz Cambodia, this Singaporean-designed project has another 800,000 USD in transactions under negotiation.
Realestate.com.kh, PARC 21’s exclusive sales partner, notes that the project’s popularity stems from the fact that it meets the demand of local and international investors for projects with a strategic location, competitive pricing and solid progress despite the disruption of the global supply chain. PARC 21 is expected to be completed by June 2022.
The disruption of global supply chains has affected many new developments in Phnom Penh, causing delays in construction. As a result, investors still looking to invest in Cambodia have begun to look at projects close to completion and even those that have been completed.
Silvertown Metropolitan is a completed project in BKK1 that is attracting renewed interest from property investors. Developed and managed by Naki Realty, Silvertown Metropolitan is a serviced condominium well known to Phnom Penh’s high-end tenants. The project has recently restarted its marketing efforts to the high-end tenant market and as a completed project – saving investors from wondering if this project will be completed.
The residential rental market in Phnom Penh has largely stabilised. Realestate.com.kh’s market trends show little or no change from the prices recorded the previous month.
June 2021 price trends per room for flats for rent :
- One bedroom apartment rent per month: USD 600 (No change from June)
- Monthly rent for a 2-bedroom apartment: USD 1.000 (No change from June)
- Monthly rent for a 3-bedroom apartment: 1.800 USD (no change from June)
Tenant stock in Phnom Penh remains low compared to 2019, before the pandemic. Until foreign workers and tourists return, rental owners will need to find ways to attract new tenants and understand the needs of their remaining tenants.
Realestate.com.kh’s Phnom Penh Condominium Market Overview is a monthly report based on its developers’ internal monitoring and data collected from over 35.000 live property listings across Cambodia.