PHNOM PENH CONDOMINIUM MARKET IS BOOSTED BY HIGH SALES RATES, PROMPTING FURTHER CONSTRUCTION

1 October 2013
Cambodian Business Review
Economy and commerce / Foreign investors / Industries / Investment / Phnom Penh / Real estate / Urban administration and development
Bali Resort / Canadian Tower / CB Richard Ellis (Cambodia) Co. Ltd (CBRE) / De Castle Royal condo / Di Rivera Condominiums / Galaxy Condo's / HK Condo's / Overseas Cambodia Investment Corp.

The condominium market in Phnom Penh is still very much within its early stage of development and thus is unlikely to flourish until there is a cultural shift towards owner occupants relocating to condominium developments within the city.

This however will be heavily dependent on the urban expansion of Phnom Penh. Whilst also making consideration to the rate at which urbanization in the city continues. …

Currently, there are 18 Condominium project in Phnom Penh, inclusive of both finished developments, and developments under construction, with the main developers including De Castle and Canadian. …

Although Phnom Penh condominium market supply increased in 2012 by 29.25%, the market for condominium development is still meeting current demand, if not slightly over-supplying the market. …

In 2014 three new condominium projects will be completed, supplying inevitably, products that are under supplied. It is apparent throughout Phnom Penh however that although the market is not booming, there is a need for high quality condominium developments, De Castle, 1240, and HK Condo will provide for this. …

Sales levels vary across Phnom Penh, however in accordance to finished projects a notable high in sales rates of 95% has been achieved. These sales are generally as previously mentioned to Cambodian nationals looking to take advantage of products available at an attractive rate. …

Generally condominium within central Phnom Penh asking sale prices of $1,500/Sq.m, with De Castle asking $2,000/sq.m, with condominiums located on the outskirts of Phnom Penh( e.g. Toul Kork/ Chroy Changvar) asking sale of $500-$1000/Sq.m.

Demand for condominiums is anticipated to increase and be met by supply in 2014. The introduction of high quality products in downtown locations will offer prospective investors and opportunity to acquire products on the needs and requirements of a heavily expatriate driven area of Phnom Penh residential market as foreign nationals continue to require exclusive and up market accommodation in popular locations. …

 Cambodian Business Review Staff, P.18
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