Despite the warning signs, one Taiwanese developer claims condo demand remains strong from some corners of the sector, even though industry consensus highlights that most are coming to terms with a sluggish sales market.
Chenyi Chiu, general manager of TK Royal One, a mixed-use commercial and residential complex in Phnom Penh, told Post Property that while there seemed to be a general oversupply of condos, there was still high demand from foreigners who have a desire to live in this type of accommodation.
Speaking on the progress of TK Royal One, Chiu said 70 percent of the condo had been sold.
“We provide premium products,” he said.
“We will build trust and reliability on top of our existing well-known reputation when we begin our new development in Boeung Keng Kang 1.The project is still in the planning phase.”
Based on a 2016 study by Century 21 Cambodia, the number of condos available on the market will surpass 37,000 units in 2020.
Peng Sari, CEO of Cambodia Angkor Real Estate, said condo sales had been on the decline since mid-2016.
“If there’s a large stream of investment from overseas, the condo market will be resuscitated, but as of now, everything has slowed down, making condo sales come to an impasse,” he said.
Touch Samnang, vice president of Overseas Cambodian Investment Corporation (OCIC) which is investing in a number of big-scale projects in the Kingdom, said while condo sales have been travelling along at a slow pace, sales of projects in prominent locations were going strong.
According to Samnang, the Chinese government’s decision to restrict financial flow outside of the local market was creating some cash-flow issues for Chinese property and development companies.
“If the Chinese government continues on with the restriction, some Chinese developments in Cambodia may reach a deadlock,” Samnang warned.